Calls for Investigation as Egg Prices Reach Record Highs
Egg prices have soared to unprecedented levels, with the average cost of a dozen eggs reaching $4.95 this month. While industry leaders attribute the spike to the ongoing bird flu outbreak, critics argue that major egg producers may be exploiting the crisis to maximize profits. Advocacy groups, Democratic lawmakers, and a Federal Trade Commission member are calling for a government investigation into possible price manipulation.
The administration recently introduced a plan to combat bird flu, aiming to stabilize egg prices, a significant driver of inflation. However, its effectiveness remains uncertain. Senator Elizabeth Warren criticized the response, emphasizing the need for immediate relief for struggling families facing skyrocketing grocery costs.
The Role of Bird Flu in the Price Surge
Industry experts largely blame the bird flu outbreak for the drastic price increase. Over 166 million birds have been culled to contain the virus, including approximately 30 million egg-laying hens since January. The U.S. Department of Agriculture (USDA) mandates the destruction of entire flocks whenever an infection is detected, reducing the total egg-laying bird population by about 12% to an estimated 292 million.
Despite this decline, some analysts question whether the drop in supply justifies such extreme price hikes. Farm Action, an advocacy group for small farmers and consumers, points out that egg production only decreased by around 4% compared to the previous year. The group argues that while the supply reduction is modest, large egg corporations continue to post record profits, suggesting potential market manipulation.
American Egg Board President Emily Metz insists that the price hikes are solely due to the outbreak, dismissing allegations of price gouging. “This has nothing to do with anything other than bird flu,” Metz stated. “Farmers are in the fight of their lives, doing everything they can to protect their flocks.”
Rising Profits Raise Questions
Historically, retail egg prices remained below $2 per dozen before the outbreak. Since then, prices have more than doubled, significantly benefiting egg producers. While many leading egg suppliers are privately owned and do not disclose financial data, Cal-Maine Foods, the largest publicly traded egg producer, reported soaring profits.
Cal-Maine, which supplies about 20% of the nation’s eggs, posted a $219 million profit in its most recent quarter. This marks a dramatic increase from $1.2 million in early 2022 before the outbreak. The company sold eggs at an average of $2.74 per dozen, nearly double the $1.37 per dozen recorded before the crisis. CEO Sherman Miller acknowledged that supply shortages due to bird flu contributed to higher prices but also noted increased sales volume driven by acquisitions and growing demand.
Despite these explanations, past legal cases fuel skepticism. In 2023, a jury found major egg producers guilty of deliberately limiting supply to inflate prices during the 2000s. With current market conditions echoing past concerns, pressure is mounting for federal regulators to investigate whether similar tactics are being used today.
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