4 ms·
I can't find it now, but I read somewhere that CalMaine had managed to mostly escape getting avian flu in its own birds. So it would make sense that their prof
by nycticorax 4y ago
I can't find it now, but I read somewhere that CalMaine had managed to mostly escape getting avian flu in its own birds. So it would make sense that their profits would dramatically increase if the price of eggs goes way up b/c of bird flu, but they can still sell the same number of eggs b/c their birds are not sick/dead. That explanation wouldn't require collusion, just normal supply and demand in a competitive market. (Cold comfort if you're poor and can't afford eggs anymore, though.) You could argue it's price-gouging, but, well, they're a public for-profit company. They're pretty much required by their shareholders to price-gouge when they can do so legally.
And of course it could be some of this (legal), but also some amount of collusion to fix prices (likely illegal).
- margalabargala 4y agoI heard the same. At some point, price gouging laws apply. But below that point, if one company takes steps to prevent bird flu in their flocks, then they get rewarded when all the other flocks get bird flu. Rather than looking at one company who managed to do well in the situation, I'd be curious to know what happened to overall egg producer revenues. If they went up, there's likely price gouging going on. If they went down or stayed the same, well, that's bird flu, and this company did well by planning for the future.