{"id":94385,"date":"2023-03-05T14:33:13","date_gmt":"2023-03-05T18:33:13","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=94385"},"modified":"2023-03-05T14:33:15","modified_gmt":"2023-03-05T18:33:15","slug":"why-is-the-price-of-eggs-going-up","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/why-is-the-price-of-eggs-going-up\/","title":{"rendered":"Why Is the Price of Eggs Going Up &#038; Is Collusion to Blame?"},"content":{"rendered":"\n<p>Why is the price of eggs going up? Why do some believe collusion is to blame? When will egg prices come down?<\/p>\n\n\n\n<p>The average price of eggs jumped 60% last year\u2014one of the largest percentage increases of any food or service in the U.S. Some allege that the price of eggs is going up due to collusion between large egg producers taking advantage of Americans\u2019 durable love of eggs to extract profits as high as 40%.<\/p>\n\n\n\n<p>Keep reading to learn why the price of eggs is going up and if we will see it go down in the near future.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-shockingly-high-price-of-eggs\">The Shockingly High Price of Eggs<\/h2>\n\n\n\n<p>The average American <a href=\"https:\/\/www.nytimes.com\/2023\/02\/03\/briefing\/why-eggs-cost-so-much.html\" target=\"_blank\" rel=\"noreferrer noopener\">eats 287 eggs a year<\/a>\u2014roughly one egg most days of the week\u2014and if you\u2019re one of them, you may have noticed that your morning omelet got shockingly eggspensive in the past 12 months. If you\u2019re curious about why the price of eggs is going up, a <a href=\"https:\/\/www.reed.senate.gov\/news\/releases\/reed-asks-ftc-to-crack-down-on-possible-egg-price-gouging\" target=\"_blank\" rel=\"noreferrer noopener\">U.S. Senator<\/a>, <a href=\"https:\/\/farmaction.us\/wp-content\/uploads\/2023\/01\/Farm-Action-Letter-to-FTC-Chair-Lina-Khan.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">farmer-led advocacy group<\/a>, and <a href=\"https:\/\/www.washingtonpost.com\/business\/fact-focus-egg-shortage-breeds-chicken-feed-conspiracies\/2023\/02\/05\/1243e2a6-a5b4-11ed-b2a3-edb05ee0e313_story.html\" target=\"_blank\" rel=\"noreferrer noopener\">social media users<\/a> have some theories: Major egg companies are colluding\u2014in some cases <a href=\"https:\/\/www.washingtonpost.com\/business\/fact-focus-egg-shortage-breeds-chicken-feed-conspiracies\/2023\/02\/05\/1243e2a6-a5b4-11ed-b2a3-edb05ee0e313_story.html\" target=\"_blank\" rel=\"noreferrer noopener\">with chicken feed producers to willfully botch their product<\/a>\u2014to reduce backyard egg production and force Americans to buy commercial eggs at inflated prices.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-going-on-with-the-price-of-eggs\">What Is Going on With the Price of Eggs?<\/h3>\n\n\n\n<p>Although the price of many groceries has gone up over the past year, including <a href=\"https:\/\/fortune.com\/2023\/01\/10\/egg-prices-national-average-doubled-bird-flu-fuel-feed-costs\/\" target=\"_blank\" rel=\"noreferrer noopener\">as high as 12% last November<\/a>, the price of eggs has risen significantly more than other foods:\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Across all egg types, <a href=\"https:\/\/www.cnbc.com\/2023\/01\/23\/high-egg-prices-due-to-a-collusive-scheme-by-suppliers-group-claims.html\" target=\"_blank\" rel=\"noreferrer noopener\">average prices have gone up 60% last year<\/a>\u2014one of the largest percentage increases of any U.S. good or service.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Last December, <a href=\"https:\/\/fred.stlouisfed.org\/series\/APU0000708111\" target=\"_blank\" rel=\"noreferrer noopener\">the average price of a dozen large, Grade A eggs was $4.25, up from $1.79 a year earlier (a 138% increase<\/a>). In some places, <a href=\"https:\/\/www.vice.com\/en\/article\/qjkydd\/wtf-is-going-on-with-absurd-egg-prices-corporate-greed-group-says\" target=\"_blank\" rel=\"noreferrer noopener\">the price was as high as $9.73.<\/a>\u00a0<\/li><\/ul>\n\n\n\n<p>Bakeries and restaurants, which sell egg-reliant products, have also seen the cost of thirty cases of a dozen eggs <a href=\"https:\/\/www.theguardian.com\/us-news\/2023\/jan\/25\/18-a-dozen-how-did-americas-eggs-get-absurdly-expensive\" target=\"_blank\" rel=\"noreferrer noopener\">swing from as much as $85 to $165<\/a>. Some have been <a href=\"https:\/\/apnews.com\/article\/bird-flu-business-213d845ae92814bf3189eec9c1ccf902\" target=\"_blank\" rel=\"noreferrer noopener\">forced to pass along the soaring costs to customers<\/a> to retain staff and stay afloat.\u00a0<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-are-skyrocketing-egg-prices-the-result-of-collusion\">Are Skyrocketing Egg Prices the Result of Collusion?<\/h4>\n\n\n\n<p>Some believe that large U.S. egg companies are engaged in a collusive scheme to line their pockets with money that many Americans can\u2019t afford to spend right now. In a <a href=\"https:\/\/farmaction.us\/wp-content\/uploads\/2023\/01\/Farm-Action-Letter-to-FTC-Chair-Lina-Khan.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">January 19 letter<\/a> to the Federal Trade Commission, the farmer-led advocacy group Farm Action alleges that Cal-Maine, the nation\u2019s largest egg producer and industry bellwether, extracted profits as high as 40% on the backs of Americans\u2014under the guise of the avian influenza and out of control inflation. They assert that:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Cal-Maine controls 20% of the retail egg market with 47 million egg-laying hens<\/strong>\u2014dwarfing its next largest competitors, which <a href=\"https:\/\/www.hendrix-isa.com\/en\/news\/top-us-egg-producer-ranking-of-2022\/\" target=\"_blank\" rel=\"noreferrer noopener\">have 28 million and 20 million egg-laying hens, respectively<\/a>.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Leading firms in the egg industry have a history of employing cartel-like behavior<\/strong> to limit production, divide markets, and increase prices for customers\u2014a concern founded by a jury as recently as 2018.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>The <a href=\"https:\/\/www.shortform.com\/blog\/will-there-be-a-bird-flu-pandemic\/\">avian flu<\/a> outbreak of 2022, while serious, only minimally impacted egg supply<\/strong>. In fact, in May 2022, the USDA\u2019s Economic Research Service observed that egg sector price increases were considerably larger than avian flu-related egg production decreases\u2014and reflected both the \u201cinelastic nature\u201d of egg demand and dominant egg producers\u2019 decision to not ramp up egg production to counter record-high prices.&nbsp;<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-the-response-to-collusion-allegations\">The Response to Collusion Allegations<\/h4>\n\n\n\n<p>The president and CFO of Cal-Maine, which <a href=\"https:\/\/www.businesswire.com\/news\/home\/20221228005357\/en\/Cal-Maine-Foods-Reports-Record-Results-for-Second-Quarter-Fiscal-2023\" target=\"_blank\" rel=\"noreferrer noopener\">announced record-setting profits<\/a> for the second quarter of fiscal year 2023, <a href=\"https:\/\/www.cnbc.com\/2023\/01\/23\/high-egg-prices-due-to-a-collusive-scheme-by-suppliers-group-claims.html\" target=\"_blank\" rel=\"noreferrer noopener\">denied Farm Action\u2019s allegations<\/a>. Major feed <a href=\"https:\/\/www.shortform.com\/blog\/bargaining-power-of-suppliers-understanding-michael-porter\/\">suppliers<\/a> and poultry experts also <a href=\"https:\/\/www.washingtonpost.com\/business\/fact-focus-egg-shortage-breeds-chicken-feed-conspiracies\/2023\/02\/05\/1243e2a6-a5b4-11ed-b2a3-edb05ee0e313_story.html\" target=\"_blank\" rel=\"noreferrer noopener\">deny altering their product<\/a>, calling collusion claims fake news. In fact, they contend, egg prices have doubled due to <a href=\"https:\/\/apnews.com\/article\/bird-flu-business-213d845ae92814bf3189eec9c1ccf902\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>rising labor, packaging, fuel, and feed costs<\/strong><\/a>\u2014the last of these by as much as 60% <a href=\"https:\/\/www.nytimes.com\/2023\/02\/03\/briefing\/why-eggs-cost-so-much.html\" target=\"_blank\" rel=\"noreferrer noopener\">due to the war in Ukraine<\/a> which, along with Russia, is a key global supplier of wheat and grains used for feed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-s-next\"><strong>What\u2019s Next?<\/strong><\/h3>\n\n\n\n<p>So, will egg prices keep going up or will we see them come back down anytime soon? Though the FTC has declined to comment on Farm Action\u2019s allegations, Economists say that <a href=\"https:\/\/www.cnbc.com\/2023\/01\/23\/high-egg-prices-due-to-a-collusive-scheme-by-suppliers-group-claims.html\" target=\"_blank\" rel=\"noreferrer noopener\">brighter skies may be ahead for Americans eager to see egg prices ease<\/a>: Wholesale egg prices fell to $3.40 a dozen in late January, down from a high of $5.46 in late December, and consumers generally feel wholesale price shifts about four weeks later. So once we\u2019re through Easter (typically a period of high demand for eggs) consumers may eggsperience some relief.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why is the price of eggs going up? Why do some believe collusion is to blame? When will egg prices come down? The average price of eggs jumped 60% last year\u2014one of the largest percentage increases of any food or service in the U.S. Some allege that the price of eggs is going up due to collusion between large egg producers taking advantage of Americans\u2019 durable love of eggs to extract profits as high as 40%. Keep reading to learn why the price of eggs is going up and if we will see it go down in the near future.<\/p>\n","protected":false},"author":19,"featured_media":56770,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,81,17],"tags":[727],"class_list":["post-94385","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-economics","category-food","tag-articles","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why Is the Price of Eggs Going Up &amp; Is Collusion to Blame? - Shortform Books<\/title>\n<meta name=\"description\" content=\"Why is the price of eggs going up recently? 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