Eggs-Tortion? Profits For Largest U.S. Egg Producer Soar 718%

Do you remember when the price of eggs went up and companies said that it was due to inflation, high transportation costs, the sudden decrease in production, or some sort of avian flu?

Although Cal-Maine Foods, which is the biggest U.S. egg producer, claimed to have the same issues, it turns out that they actually doubled their revenue to almost a billion dollars last quarter because of significantly higher egg prices, leading to their profits soaring by 718%. It’s worth noting that Cal-Maine Foods’ egg production didn’t decrease; the company sold 1% more eggs than before, and they control about 20% of the domestic egg market, according to CNN’s report.

Cal-Maine Foods stated that in the quarter ending on February 25, the average selling price for a dozen eggs was $3.30, which is twice the cost compared to the previous year, when it was $1.61 a dozen eggs. As a result, their net income went up to $323.2 million from $39.5 million in the previous year.

The Bureau of Labor Statistics (BLS) has been keeping track of data since 1980, and in January, the cost of a dozen eggs exceeded that of a pound of beef for the first time, with the average price of a dozen large Grade A eggs being $4.82, while a pound of ground beef was $4.64. Eggs cost $1.93 while beef was $4.77 a pound in January 2022, but the Bureau reports that egg prices have risen by 70% in the past year alone.

The advocacy group Farmer Action, which is led by farmers, asserts that the “real source” of skyrocketing prices is a “collusive scheme” among top egg producers in the United States to impose high prices and exploit consumers. According to a January letter to the Federal Trade Commission (FTC), the alleged collusion allows egg producers to extract “egregious profits” of up to 40%. They add that avian flu is not to blame, and that the supply disruption caused by the outbreak had an “apparently mild impact on the industry,” as can be seen from publicly available financial data from the egg sector, according to Farm Action.

The group also notes that egg producers are making significant profits. For example, Cal-Maine reported a ten-fold year-over-year increase in gross profits, from $50.392 million to $535.339 million, and a five-fold increase in its gross margins during the 26-week period ending on November 26, 2022, according to the letter.

Some politicians have criticized egg producers’ prices, accusing them of exploiting consumers.

“American families who are struggling to put food on the table deserve answers to whether the increased costs they are paying for eggs are due to decreased supply or out-of-control corporate greed,” states a letter sent last month by Sen. Elizabeth Warren (D-MA) and Rep. Katie Porter (D-CA) to Cal-Maine and other major egg producers.

The opinions stated here are the author’s own and may not represent those of The Daily Wire.

Joseph Curl has spent 35 years covering politics, including 12 years as a national newspaper’s White House correspondent. He was also the a.m. editor of the Drudge Report for four years. Send tips to [email protected], and follow him on Twitter @josephcurl.