Farm Group Calls for Investigation Into U.S. Egg Price Surge

Skyrocketing inflation in the U.S. has had a devastating effect on consumers’ wallets.

According to the Bureau of Labor Statistics, eggs are the latest worry. Their price rose 138% to $4.25 per dozen in December from the previous year.

A farm group calls on the Federal Trade Commission (FTC) To examine the rising price of eggs at top companies, look out for signs of price gouging.

In recent years, a variety of groups including regulators, farmers, and industry officials have often debated the power of top agricultural firms to set prices for groceries and increase what consumers pay.

‘SKY-HIGH’ EGG PRICES: A HISTORICAL LOOK AT EGG COSTS SINCE 1980

A Glenview grocery store shopper checks eggs before buying at the counter. Due to rising prices and inflation, border officials are increasingly able to seize eggs.  (AP Photo/Nam Y. Huh / AP Newsroom)

Farm Action sent Lina Khan a letter on Thursday requesting that the antitrust regulator examine record-high profits at the largest egg company.

Cal-Maine Foods is the largest egg producer, controlling 20% of the egg retail market.

Quarterly sales at Cal-Maine A regulatory filing revealed that gross profits rose more than 600%, and revenues were up 110% compared to the prior quarter.

According to the company, record sales could be attributed to lower egg supply due to avian virus driving up prices.

Half-empty shelves of eggs can be seen in a Los Angeles supermarket on January 8, 2023.  (I RYU/VCG via Getty Images / Getty Images)

EGG PRICES RISE MORE THAN 64% IN SOME STATES

The U.S. Department of Agriculture (USDA), also mentioned a record outbreak of the avian influenza as a reason behind high prices.

Nearly 58,000,000 turkeys and chickens have been produced. killed by avian flu According to the USDA, the virus spread from 2022 to 2023 mostly in March and April. 

U.S. egg production in October was about 5% less than last year. Egg inventories in December were down 29% compared with the beginning of the year. This is a significant drop but it may not explain record high prices, according to Basel Musharbash (an attorney with Farm Action).

On Jan. 8, 2023, a large number of eggs were stored in a freezer in Los Angeles’ supermarket. (I RYU/VCG via Getty Images / Getty Images)

US BORDER AUTHORITIES REPORT INCREASE IN EGG SMUGGLING 

“We want the FTC to dig in and see if consumers are being price gouged,” Musharbash said.

Cal-Maine stated in a statement to Reuters that higher production costs also contribute to higher prices.

American Egg Board, a marketing organization for eggs, stated in a statement that egg price reflect many factors and that wholesale egg prices have begun to fall.

FOX Business reached the FTC to provide comment.