The price of eggs has skyrocketed in recent months, reaching 138% year-over-year last month.
The Egg Price Increased In The US
According to the Bureau of Labor Statistics, a dozen eggs now have an average price of about $4.25. This is partly due to avian flu tearing through poultry farms across the US wiping out some 58 million birds in the last year. But the nation’s antitrust regulator must examine record-high profits at the top egg company, said Farm Action on Thursday in a letter to FTC chair Lina Khan.
However, the Federal Trade Commission (FTC) should examine high egg prices for signs of price gouging from top egg companies, a farm group said, as Americans continue to pay more than ever for the household staple.
US authorities, farmers, and industry have frequently argued in recent years about the influence of top agriculture firms to set prices and drive up what consumers pay for groceries, such as when the price of beef skyrocketed in 2021.
The Cal-Maine Foods
According to a late December filing with the Securities and Exchange Commission(SEC) said Cal-Maine Foods (CALM.O), which holds 20% of the retail egg market, reported quarterly sales up 110% and a more than 600% increase in gross profits over the same quarter in the prior fiscal year.
In the filing, the company indicated to decreased egg supply nationwide due to avian flu driving up prices as a reason for its record sales. However, the company has had no positive avian flu tests on any of its farms according to its quarterly report.
“Avian flu is not fabricated it’s true,” expresses Joe Maxwell, the co-founder of Farm Action. “But the dominant firms are using that supply chain disruption to gouge the customers. The numbers in our letter indicate that the production defeat due to avian flu was minor compared to the prices being charged.”
The American Egg Board said in a statement that egg prices reflect a variety of factors and that wholesale egg prices are beginning to fall. At the heart of America skyrocketed egg prices amid a tight supply of eggs due to avian flu. Retail poultry farms affected by the infection birds flu rebuild their flocks, meaning they can be out of commission for months.
Cal-Maine stakes have fallen in recent weeks after ascending nearly 50% last year.