Among other things, it shows that the largest egg farmers are consolidating market power; and they are using avian flu as an excuse to flex their market power and make massive windfall profits.
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Cal-Maine Foods, one of the largest egg producers in the country, reported an almost doubling of revenue over last year, and a whopping 574% increase in profits, and attributed this increase to avian flu.
P.S. There are avian flu outbreaks in many countries right now, and yet most (I did not say “all” because I haven’t done a survey of the 100+ countries with outbreaks) do not have the runaway egg prices that we are seeing.
This is illegal price fixing. It’s just happening in the US.
Yep. We (Ireland) have VERY slightly raised prices; the major change is them slapping stickers on the cartons saying the chickens are temporarily housed indoors. That's all.
There are enough anti-monopoly people in Trump circles that if the current administration were serious about anything rather than just Musk firing anyone who's investigated him and Hesgeth firing anyone who's non-white, non-male, or a Russia hawk, they'd have announced an investigation by now.
Apologies for breaking in your thread but what counts as "pricey" for eggs (for US)? Because I'm in Italy and prices have risen heretoo in recent years, and I know part of it is the rising (likely to rise more) cost of feed.
This is actually a conversation that I had with a friend the other day. It didn't make sense to us that avian flu would raise prices to this extent in just the US. Figured it had to do with some price gouging. Thank you for sharing the resources to back this up!
Same thing happened with pandemic pricing and then once they figured out people would pay the higher prices, they kept raising them. Supply and demand isn’t a thing anymore. It’s what the market will bear. Which would be less of an issue if they shared their profits with labor but of course not.
And it's not just eggs. None of what had price hikes during lockdown (paper goods, milk, pet supplies, etc.) has come down in price, even without supply chain interruptions. Tariffs are going to cause further hikes, some of which will be legit, most of which will not.
Exactly. And they’re all going to make money off the tariffs because our market has become so consolidated that a few suppliers winking at each other is commonplace.
Energy companies already hiked natural gas and electricity rates in anticipation of tariffs a few weeks ago, they won't lower them if the tariffs never happen.
What I find fascinating about the egg prices this time around is that the organic free range brands prices have stayed exactly the same… and now they’re the cheap option.
I have anecdata that it is absolutely not bird flu, because living in bumfuck Tennessee is bad for many things but IS good for farm co-ops and the local egg prices have not surged at all, let alone to grocery egg levels.
Ours did raise prices but that’s because they can’t get any insurance if bird flu hits their flock. He’s increasing his flock on the assumption that demand will be even higher but that comes with much higher risk without insurance. I will pay the higher price to him without quarrel.
I think this was largely true until recently, but in the past few months bird flu has been hitting layers very hard. So it plays a role now — not clear how much of a role.
As you will note in the post you are responding to, I am not saying it does not play a role. I am saying that the role is minor compared to the price fixing.
More proof that it’s not bird flu: in Canada, which aggressively controls this cartel-like behavior, egg prices are $3.75 CAD per dozen. Very similar to what they were 12 months ago.
Canada's ability to control this sort of thing is limited. There was price-fixing in bread a while back, and all our groceries in general have been artificially priced upwards since the pandemic with no signs of stopping; the major supply corporations know they can get away with it.
What's the likelihood that the egg cartels will eventually cut a deal with Trump to suddenly lower prices and improve his reputation (while still keeping prices high compared to last year)?
Pardon my ignorance, but is this NOT the exact thing Kamala was talking about implementing were she to win? Some law that would fine the shit out of companies/ban practices that were found to be illegally price-gouging?
If I’m not mistaken, isn’t this like price gouging?
And wasn’t this one of the things Harris was going to fight to have legislation against that she would’ve signed into law?
I seem to remember hearing her talk about this having anti-price gouging legislation in her stump speeches.
A case in point this morning: Trader Joe’s large free-range white eggs are $4.99. Same sort eggs at Ralph’s are “on sale” for $7.99, regular price $8.99. Trader Joe’s buys from local smaller farms.
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(Source: Cal Maine Foods Fiscal Report, Q4 2023 https://calmainefoods.gcs-web.com/news-releases/news-release-details/cal-maine-foods-reports-results-fourth-quarter-and-fiscal-year)
It’s the fact that bird flu provides an excuse for massive corporations to reap unheard of profits by working together to fix prices.
The proof is in the profits.
This is illegal price fixing. It’s just happening in the US.
I bought 20 eggs for ~€5 today.
https://bsky.app/profile/courtneymilan.com/post/3likku3akob2v
/i am equally annoyed tho and hope local government isn't failing that bad (yet)
The organic cage-free brown eggs were about a dollar less.
Either one is way too much. But yeah, the "cheap" option has surpassed the fancy brands.
But there *is* a federal antitrust statute; it just wasn’t being enforced nearly enough.
I hate it so bad man
And wasn’t this one of the things Harris was going to fight to have legislation against that she would’ve signed into law?
I seem to remember hearing her talk about this having anti-price gouging legislation in her stump speeches.