Summary
Major egg corporations may be using avian flu as a ruse to hike up prices, generating record profits while hurting American consumers, new research suggests.
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Egg prices soared to nearly $5 a dozen, rising 157% since before the avian flu outbreak, despite only a 9% drop in laying hens.
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Cal-Maine, controlling 20% of the US market, saw a sevenfold profit increase in 2023 compared to 2021.
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Over 166 million poultry have been culled, but critics say consolidation and slow flock replacement may inflate prices beyond the virus’s 12-24% direct cost.
Lawmakers urge investigations, while the Trump administration plans vaccines, reduced culling, and a $1bn avian flu fund to help stabilize costs.
“No shit.”
Torches & pitchforks.
Capitalism functioning as expected. Shocking.
They can hike prices as much as they want, there is nothing illegal or even wrong (arguably) about that. As long as people buy enough for it to increase profits, it’s obvious they will do that. That’s the reason free competition is important. Free as in preventing monopolies and cartels.
But Americans have lost interest in free competition, and prefer models that maximize profits now.They may actually be hurting themselves in the long run. The amount of people I know that have decided to get chickens since the pandemic has increased far more than I ever expected it would. And if you’ve ever had your own chickens before, you know that there’s plenty to go around and you share with friends and neighbors. So not only are they permanently losing more customers to people getting chickens, they’re also losing customers to friends of people that have chickens. Plus all these people are getting much higher quality eggs from happy chickens, so why would they ever go back? I know not everyone can, but, the more people that start raising chickens the better!
Hopefully some of those that get chickens, figure they might as well have more chickens now they are at it anyway, and begin to supply to local supermarkets too.
I hadn’t thought about it, but that would truly be the ideal situation. Imagine going to the store and all the eggs are from local’s extra stock. I know it couldn’t currently happen that way based on what regulations allow, but I can certainly imagine.
I’ve looked into raising chickens. There is so much that goes into it. Between their coop and bedding, cleaning and feed, the upfront cost alone is cost prohibitive. On top of that, everything wants to eat chickens. So if you have any predators (foxes, wolves, even dogs), they’ll go after your chickens.
The egg prices have me seriously reconsidering it though
The fact that the upfront cost can be prohibitive and actual effort is involved but people are still doing it should tell you just how bad things have gotten. Plus, the more people that do it, the more they can teach others and help them out. I know people who got chickens after a neighbor got chickens and they saw how beneficial it was and if their neighbors can do it they certainly could as well.
They can hike prices as much as they want, there is nothing illegal or even wrong (arguably) about that.
In the US there are exceptions to the charge anything standard, such as limitations on gouging on gas pricing during emergencies and laws against companies colliding on price hikes. The protections kick in when customers don’t have a choice, and it is possible that all egg companies raising prices to seek profits while blaming something that has far less of an effect than the prices indicate could potentially fall into one of those two categories.
Not that it matters as the penalties are always far less than the abuse, but pricing in the US isn’t a complete wild west.
Chicken egg shortage is not an emergency. gas is irreplaceable for transport, eggs are not irreplaceable for food.
It’s amazing in hindsight just how much of our capitalist free market was just a show to compete with the Soviet Union. Now our biggest rivals are both just corrupt oligarchies too.
Something big is due for a change.
This is why I refuse to buy eggs until prices go down to normal. I’m not going to reward them for taking advantage.
What, price gouging, on eggs? What will they think of next, toilet paper? No wait, I bet they haven’t thought of making the package look the same, but put less product in it and charging the same? No wait, what if they changed the package and put less in it and charged more?
Nah … that will never work.
No wait, what if they changed the package and put less in it and charged more?
I was shopping a few weeks ago and noticed that every single package said something like ‘5 times as much as a standard roll’ or 10 times or 20 times. Nothing said it was a standard roll. Some quick math told me that they all have their own definition of what a standard roll is too.
I’ve noticed that 2x rolls of toilet paper usually have the most sheets per roll. 3x rolls tend to lean in to the fact that they are 3 play and use a standard 1 ply roll as their base point so they have the same sheet count. 2x rolls seem to use a standard 2 ply roll as their base so the standard roll is the same sheet count as a 1 ply roll but actually has close to double the sheet count of the 3x rolls. It’s weird.
I usually look at square feet.
Toilet paper math is the worst math.
Wow, this is truly unprecedented. We haven’t ever seen anything like this before!
Shocking I tell you. Shocking. 😮
Too bad price gouging isn’t prosecuted anymore.
They’re $11 in southern California.
I saw $10 at my regular store in Ohio last week. The same was $2 three years ago. That wasn’t even good “free range” eggs although I don’t believe that marketing. Backyard chickens are where it is at.
$5/dozen is pretty good compared to most prices I’ve seen.
Shocked Pikachu face.
$5?! Where?! They’re $9.99 here in Los Angeles. :(
For real, Seattle is like this too. We’re going to be paying $1/egg soon!
$16.49 in Brooklyn yesterday
The industry has already been found liable for such behavior: https://apnews.com/article/egg-producers-price-gouging-lawsuit-conspiracy-be6919b3fb42bf2d9d3884d5e133e91d
People cannot keep up with the costs. The government isn’t doing anything. They let corporations get away with everything
sighs This is so very frustrating. 😖
Don’t worry everyone, the Consumer Protection Agency will take care of…
Oh, nvmd.
Claiming that a 157% price hike cannot be explained by a 9% drop in supply is just bad economics. If everybody just buys the eggs anyway the price can rise arbitrarily high.
Profits increasing on the short term is very plausible as costs don’t rise from having some hens die, but supply drops. This is over compensated with price increases.
