Price gouging may be the reason why your egg prices are so high.

 According to a farm group, price gouging may be the reason why your egg prices are so high.

Given that Americans continue to spend more than ever for the home staple, the Federal Trade Commission (FTC) should investigate high egg prices for evidence of price gouging from leading egg firms, according to a farm organization. Regulators, farmers, and industry in the United States have frequently disagreed in recent years on the ability of significant agribusiness companies to set prices and raise what customers pay for goods, as was the case in 2021 when the price of beef surged.

According to the Bureau of Labor Statistics, the price of eggs increased by 138% in December from a year earlier, reaching $4.25 for a dozen. This is the most recent cause for alarm.

 

The U.S. Department of Agriculture (USDA) cited a record bird flu outbreak as the cause of the price hikes. Farm Action, however, wrote to FTC head Lina Khan on Thursday, urging her to look into the top egg company's record-breaking profits. According to a late December statement with the Securities and Exchange Commission, Cal-Maine Foods, which holds 20% of the retail egg market, reported quarterly sales up 11% and gross profits up more than 600% over the same quarter in the previous fiscal year.

 

The company attributed its record sales to the nation's lower egg supply caused by avian flu driving up prices. There have been no positive avian flu tests on any of the company's farms.

 

According to Maxwell, "the FTC has greater authority as it relates to deceptive tactics." "The Chair addressed these issues in public and stated that the FTC intended to take stronger aggressive enforcement action against them, so we believed that that created an opening to present this case to the Chair and the FTC."

 

According to Farm Action, Khan has previously suggested that enforcers should try to dismantle monopolies in markets "with very inelastic demand" that "impose large costs on the public."

 

According to Basel Musharbash, an attorney for Farm Action, the leading egg farmers decided not to raise production despite "favorable conditions," which resulted in a 29% decrease in overall U.S. egg inventory in December compared to the beginning of the year. Could there possibly be a completely innocent explanation for everything here? says Musharbash. “Sure. But it does imply that there may be something worth looking into here and how the market appeared to balance its production choices among rivals in order to introduce and maintain this exceptionally high pricing over the course of the entire year.

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