Egg prices skyrocket, egg company profits increase by 600% in the U.S. ‘Investigation’

Profits of egg companies increased by 600 percent last year due to the abnormal skyrocketing of egg prices, and farmers in the United States requested an investigation by the Federal Trade Commission (FTC).

Cal Maine Foods, which controls 20% of the U.S. retail egg market, filed with the Securities and Exchange Commission at the end of last December to report a 110% increase in quarterly sales and a more than 600% increase in gross profit compared to the same quarter of the previous fiscal year. reported that

As Americans continue to pay more than ever for household necessities, the Federal Trade Commission (FTC) should look into high egg prices for signs of skyrocketing prices from top egg companies, a farm group said.

U.S. regulators, farmers, and industry have often argued in recent years about the power of top agribusiness companies to set prices and raise what consumers pay for groceries, like when beef prices skyrocketed in 2021.

Data from the US Bureau of Labor Statistics showed that the price of eggs in December rose 138% from a year ago to $4.25 per dozen.

Reuters reported on the 20th that Farm Action, an organization of US egg producers, asked the Federal Trade Commission (FTC) to investigate high egg prices for signs of soaring prices at the top egg producers on the 19th.

A group of farmers wrote to FTC Chairman Lina Khan demanding that antitrust regulators investigate the record-high profits from the top egg companies.

The United States Department of Agriculture (USDA) cited record outbreaks of avian flu as a reason for the high price for egg consumers to rise.

Cal Maine Foods (CALM) cited rising prices as a result of reduced egg supplies nationwide due to avian flu as the reason for the record sales.

Farm Action attorney Basel Musharbash told Reuters: “Data from the U.S. Department of Agriculture show that U.S. egg production was down about 5 percent in October compared to last year, and egg stocks were down 29 percent in December from the beginning of the year. It's a significant drop, but it may not explain the record-high prices," he told Reuters. "Cal Main's filings show no farms have tested positive for avian flu."

Cal-Maine's share price has risen nearly 50% over the past year and has fallen in recent weeks.

Egg marketing group American Egg Board told Reuters in a statement that egg prices reflect a variety of factors and that wholesale egg prices are starting to decline.

According to the U.S. Department of Agriculture (USDA), nearly 58 million chickens and turkeys have died or controlled the spread of the virus since early 2022, mostly in March and April, with the largest outbreak in 2015 killing 50.5 million chickens and turkeys. the bird died.

 

U.S. regulators, farmers, and industry have often argued in recent years about the power of top agribusiness companies to set prices and raise what consumers pay for groceries, like when beef prices skyrocketed in 2021.