Why Are Eggs So Expensive Now?
Photo by Jakub Kapusnak/Unsplash
It’s no secret that grocery prices have risen rapidly over the past year. The good news? According to NPR, inflation is finally easing, hopefully providing consumers with at least a modicum of relief. The bad news? The prices of some common goods, like eggs, are still sky-high. At the end of 2022, egg prices were up 120% from the same time in 2021. In some of the most expensive areas of the country, shoppers are paying $7 to $8 for a dozen eggs.
There are a few reasons for this surge in egg prices. Mostly, the high costs are attributed to a brutal outbreak of avian flu, which began in February. However, unlike previous outbreaks that were largely quashed by summer, in 2022, the disease rampaged throughout the course of the year. Nearly 60 million birds have been affected by the disease, which has required mass culling, or slaughter, in an effort to control the virus. A drastic reduction in the number of egg-producing chickens in the country has resulted in skyrocketing egg prices; supply is struggling to keep up with demand.
However, according to some, avian flu only partially accounts for the increase in egg prices. On January 15, Vermont Senator Bernie Sanders tweeted about the “corporate greed” he believes plays into the egg price hike. Because even as the egg industry as a whole has faced a devastating outbreak, Cal-Maine Foods, the largest egg producer and distributor in the country, which is known for brands like Land O’ Lakes, Farmhouse Eggs and Egg-Land’s Best, among others, has reported no cases of avian flu at any of its facilities, according to CNN Business. This seems to indicate that the rise in egg prices from these brands is not, in fact, directly related to avian flu.
By November, Cal-Maine’s profits had increased 65% from a year prior. And this isn’t the first time Cal-Maine appears to have made a profit from an epidemic: The State of Texas claims that the company price-gouged consumers during the Covid-19 pandemic, according to the Texas A&M AgriLife Extension blog. At the time of writing, Benzinga estimates Cal-Maine CEO Adolphus B. Baker’s net worth at around $241.66 million.