Why are egg prices soaring? Some blame the industry for price gouging

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The price of eggs is skyrocketing. While the cost of groceries has generally increased, the price of eggs has tripled in the United States since the start of the COVID-19 pandemic in 2020. Things have gotten even hotter recently, with the price of a dozen eggs now cost around $4.25, compared to $1.79 last year. The situation has become so serious that there is still today a black market fueled by egg smugglers.

So what is the crack? The egg industry suggests there is nothing wrong with rising prices, arguing that the market is under pressure from broader economic factors. Most food prices are rising, they say, and eggs are simply falling victim.

Current egg prices reflect many factors, most of which are beyond an egg producer’s control, said Emily Metz, president and CEO of the American Egg Board trade group, according to The Associated Press.

Along with rising feed and transportation prices, which will impact many items on supermarket shelves, the United States and other parts of the world have suffered from the flu epidemic last year. deadliest bird in their history. According to the US Department of Agriculture, 58 million birds have died in 47 states, either directly from the virus or through culling to control the outbreak.

Economic factors and avian flu will put pressure on egg prices, but some say the unprecedented price spike is driven by industry profits and price gouging. They accuse the industry of exploiting the crisis and using it primarily to drive up prices.

In a letter to the head of the Federal Trade Commission (FTC), the advocacy group Farm Action called for an investigation into the egg price spike. They accuse industry leaders of using inflationary conditions and an outbreak of bird flu as an opportunity to extract huge profits.

US Senator Jack Reed issued a similar letter asking the FTC to investigate potential price gouging and other deceptive practices by the nation’s largest egg companies.

Reed suggests that something fishy is going on with the rising price of eggs. He notes that the problem only seems to affect large egg producers, while smaller producers manage to keep their prices relatively low. It is a quirk, he writes, that needs to be investigated.

At a time when food prices are high and many Americans are struggling to pay for groceries, we need to look at the industry’s role in perpetuating high prices and hold those responsible accountable for their actions, reads- on in the Reeds letter.

It’s also worth noting that small producers, who have faced many of the same market challenges as larger producers, have managed to keep prices in check, he notes.

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