Corporations partly to blame for high egg prices: Report
(NewsNation) — Egg shortages and high prices have largely been blamed on an outbreak of bird flu, but a new watchdog report says companies are creating the crisis by price gouging their customers.
According to data from the United States Department of Agriculture, the price of eggs has nearly doubled in the last six weeks, with the average cost of a dozen at around $8.
Bird flu, which has spread poultry and also affected dairy herds, has "slightly reduced" egg production, but "corporate greed has also played a major role," a report from Food and Water Watch published Wednesday said.
According to the report, about 10 companies control the vast majority of the eggs produced in America, and they dictate egg prices whether there's a bird flu outbreak or not.
One of these companies, the Mississippi-based Cal-Maine Foods, increased their profits by 7.5 times over the first year of the bird flu outbreak — despite not having outbreaks in their own flocks that fiscal year, Food and Water Watch found. During that fiscal year, from June 2022 through May 2023, Cal-Maine actually sold 7 percent more eggs compared to FY2021.
The report says Cal-Maine Foods "commanded prices from its buyers that were much higher than needed to cover rising costs, at a time when national egg prices were skyrocketing."
"Basically, they just raised their prices and locked up with national prices. They had no reason to," Amanda Starbuck, research director for Food and Water Watch, said.
In FY2021, Cal-Maine took in $0.15 per dozen eggs produced and sold, according to the report. It then made $1.14 per dozen eggs in FY2023, and sold over 1 billion eggs.
"That's $1 billion dollars in windfall profits that they made from the consumers having to pay more for eggs," Starbuck said.
Cal-Maine did not respond to the Associated Press's request for comment.
American Egg Board President Emily Metz said prices have nothing to do with anything other than bird flu.
“I think to suggest anything else is a misreading of the facts and the reality,” American Egg Board President Emily Metz said. “Our farmers are in the fight of their lives, period, full stop. And they’re doing everything they can to keep these birds safe.. .This is a supply challenge due to bird flu. Nothing else.”
Agriculture Secretary Brooke Rollins pushed back against criticism that the higher cost of eggs was solely the result of avian flu when she unveiled a nearly $1 billion plan to fight the current price spike.
Instead, she attributed the current situation to “the high cost of inputs, the unbelievable amount of regulation, the shutting down of our export markets.”
Rollins's plan includes $500 million for biosecurity measures to “lock the barns down” and initiatives to repopulate flocks after what she described as the depopulation of nearly 160 million birds under the Biden administration.
NewsNation digital producer Damita Menezes and The Associated Press contributed to this report.
Topics
-
PETA cites 'all-time high' egg prices in appeal to Trump to use potatoes at White House Easter Egg Roll
A leading animal rights organization is pointing to high egg prices in a push for President Trump to swap yolks for spuds at this year's White House Easter Egg Roll. In a letter to the commander in ...The Hill - 2d -
The Price You Pay: Egg prices’ impact on bakeries
One of the downstream impacts of bird flu and the soaring egg prices: its impact on bakeries. We visit one Pittsburgh bakery struggling that’s seen egg prices soar in the last two years, and the ...NBC News - Feb. 21 -
Farms and Bakeries Hit by Egg Shortages and Price Hikes
Bare shelves in supermarkets and wholesalers, combined with double-digit price jumps, are pushing many food businesses to raise prices or change recipes.Inc. - Feb. 19 -
Consumers turn to renting chickens as egg prices soar
As the bird flu outbreak impacts egg shortages and prices, some people are turning to renting or buying backyard chickens.CBS News - Feb. 21 -
Agriculture secretary outlines plan to lower egg prices
U.S. Department of Agriculture (USDA) Secretary Brooke Rollins outlined a “five pronged strategy” to lower the cost of eggs in a Wednesday Wall Street Journal op-ed citing the avian flu as an ...The Hill - Feb. 26 -
Is Bird Flu the Only Reason Egg Prices Are Soaring?
The nation’s biggest egg producer has seen rising revenues and profits. Now some Democrats are calling for an investigation into pricing practices in the industry.The New York Times - Feb. 26 -
Egg Prices Could Jump Another 41% This Year
USDA is also spending more to battle avian flu, which caused 166 million chickens to be culled to prevent disease spread.Inc. - Feb. 26 -
Is Price Gouging Part of Rising Egg Prices? Officials Want to Know
Consumer advocates, Democratic legislators and an FTC official call for an investigation into why the average price for a dozen eggs is now $4.95, squeezing restaurants and household shoppers.Inc. - 6d -
Denny's slaps surcharge on eggs as bird flu drives up prices
The company said the size of the surcharge will vary across locations and markets.CNBC - Feb. 24
More from The Hill
-
Social Security Administration bans reading 'general news' at work
The Social Security Administration (SSA) has banned reading “general news” websites at work, The Hill has learned. "Social Security employees should be focused on mission-critical work and serving ...The Hill - 19m -
AI chatbots infected with Russian disinformation: Study
The world’s most popular artificial intelligence (AI) chatbots are infected with Russian disinformation, according to a new study that was published Thursday. The research done by the news ...The Hill - 32m -
GOP signals CHIPS Act not going anywhere
Welcome to The Hill's Technology newsletter {beacon} Technology Technology The Big Story Trump's call to repeal CHIPS Act faces GOP scrutiny Republican lawmakers say President Trump's call for ...The Hill - 34m -
Second measles death reported as outbreak grows in Southwest
A second person has died from measles as the outbreak of the disease in Texas and New Mexico continues to grow, according to the New Mexico Department of Health. The person was unvaccinated and a ...The Hill - 45m -
Dems draft resolution to condemn GOP leaders over ‘illegal immigrant’ smear against Hispanic Caucus chair
House Democrats have drafted a resolution to condemn Republican leaders after the GOP’s campaign arm falsely portrayed a Hispanic lawmaker as an “illegal immigrant.” Led by Rep. Sylvia Garcia ...The Hill - 50m
More in Politics
-
Social Security Administration bans reading 'general news' at work
The Social Security Administration (SSA) has banned reading “general news” websites at work, The Hill has learned. "Social Security employees should be focused on mission-critical work and serving ...The Hill - 19m -
AI chatbots infected with Russian disinformation: Study
The world’s most popular artificial intelligence (AI) chatbots are infected with Russian disinformation, according to a new study that was published Thursday. The research done by the news ...The Hill - 32m -
GOP signals CHIPS Act not going anywhere
Welcome to The Hill's Technology newsletter {beacon} Technology Technology The Big Story Trump's call to repeal CHIPS Act faces GOP scrutiny Republican lawmakers say President Trump's call for ...The Hill - 34m -
Second measles death reported as outbreak grows in Southwest
A second person has died from measles as the outbreak of the disease in Texas and New Mexico continues to grow, according to the New Mexico Department of Health. The person was unvaccinated and a ...The Hill - 45m -
Dems draft resolution to condemn GOP leaders over ‘illegal immigrant’ smear against Hispanic Caucus chair
House Democrats have drafted a resolution to condemn Republican leaders after the GOP’s campaign arm falsely portrayed a Hispanic lawmaker as an “illegal immigrant.” Led by Rep. Sylvia Garcia ...The Hill - 50m