6 ms·

The price of eggs in America cannot be explained by inflation alone

88 points by helsinkiandrew 4y ago

helsinkiandrew 4y ago
https://archive.ph/LixuC https://archive.ph/LixuC
- deleted 4y ago
  [deleted]
ibn_khaldun 4y ago
This is a terrifically written article.
- deleted 4y ago
  [deleted]
- msrenee 4y ago
  Is it? The only source they cite for the claim of price-gouging is a group that's against large scale animal production and GMOs. They've got their own reasons to make the accusation. Honestly, it's probably true, but then they discuss meat production where there are definitely some illegal trust activities going on and say that that group has not seen the same increase in prices. Do we not remember the last time avian flu hit the country's egg production hard? The price of eggs jumped massively. Once you identify avian flu in a flock the size that these facilities house, you're talking thousands or tens of thousands of chickens culled. A battery chicken lays an egg a day. That's thousands of eggs not being produced every day until those hens can be replaced. Add in inflation and I'm going to need to see some actual numbers if the author's going to claim that those factors aren't enough to explain the price jump. They also somehow missed a valid argument against factory farms. All of those birds packed into terrible conditions in massive numbers basically guarantees a massive culling of livestock every time the risk of avian flu is high. More numerous, smaller facilities where the animals aren't stressed out and in incredibly close proximity would mean that a single housing facility becoming infected would lead to fewer animals culled if a facility is exposed. It would be a much, much smaller impact on the market. The price of eggs would be higher than our current supply during healthy years, but wouldn't spike by 100% during high risk years. Something, something, don't put all your eggs in one basket. Or hens in a single, massive building.
  - deleted 4y ago
    [deleted]
  - nobodyandproud 4y ago
    The article also mentions: - Inflation, which can’t explain the price rise; as beef and chicken (meat) did not increase at the same rate. - Excess profits earned compared to earlier quarters; also difficult to explain if the company in question faced a massive loss. How is this not relevant?
    - msrenee 4y ago
      Where in the article does it mention chicken meat? I see pork, beef, and prepared foods. Excess profits can be caused by any number of things. If the price of the eggs increased exactly enough to match inflation and loss from avian influenza, but there was also increased efficiency from new processing techniques and equipment, that's profit. If they managed to pay their workers even less than they pay in a normal year by citing increased company costs, then they pocket that too. Again, you'd need to see actual numbers and not casual conjecture to make any real calls as to what's happening in this situation.
      - nobodyandproud 4y ago
        Sometimes, a picture is worth a thousand words. > If the price of the eggs increased exactly enough to match inflation and loss from avian influenza, but there was also increased efficiency from new processing techniques and equipment, that's profit What-if speculation with zero evidence—what new technology?—-is what I would call low quality. The article at least uses industry players and other related industries to underscore their point. Which is that an investigation may be coming and is warranted.
pigtailgirl 4y ago
—- 36 eggs still 6,400won! —-
- bpiche 4y ago
  It's like $9 for a dozen eggs at Target in the bay area now. You can still get a good deal at Costco, but yeah, it's super expensive. What's the normal price of eggs in Korea?
  - frumper 4y ago
    I'm in the central valley and Target has a dozen eggs for $3.59. I was curious how it could be so much more in the bay area, but looking up an East Bay Target they're $3.59. San Francisco is $4.59. Maybe you haven't been in a while?
    - bpiche 4y ago
      Wow, now you are making me want to drive around and double check! Distinctly remember seeing a dozen eggs for at least 8 if not $9 at target in alameda a month or two ago. Am sure all the cheaper store brand eggs had sold out and was probably looking at free range eggs. And the price could have come down since then too. And everything's expensive in alameda. Glad to hear it!
ed25519FUUU 4y ago
We keep a small flock of backyard hens. Our feed prices went up by about 50%, but that was negligible for us given the retail price of eggs and how little commercial feed we buy. I think many homes would benefit from even a few birds, which can be fed almost exclusively from table scraps. It’s a win/win. Chickens compost for you and keep the food from going in a landfill, and you get eggs.
- dieselgate 4y ago
  Just makes walking around with clean feet difficult if there are chickens everywhere. Otherwise they’re great animals
- poulsbohemian 4y ago
  While it may be anecdotal, what you are sharing is really compelling, as feed in my (rural) area hasn't noticeably increased. This is the gist of what I see in a lot of sectors - there's price seeking happening. I'm finding going to the local restaurant supply store, prices are still what I would expect for the things I buy. Those same items are 3x at the national brand grocery stores. That tells me it's not about supply and demand or you'd see price increases universally, rather than only at those stores that are gouging their customers to see if they can get away with it.
  - canucker2016 4y ago
    People have noticed the disconnect between restaurant prices and grocery store prices. I have no idea who is increasing prices more than their suppliers have increased prices. for Canada, from https://ottawa.citynews.ca/national-business/canadians-making-fewer-trips-to-the-grocery-store-as-inflation-pinches-rbc-report-6673205 https://ottawa.citynews.ca/national-business/canadians-makin...: "Grocery prices grew by 11.4 per cent year-over-year in January ... according to the latest data released by Statistics Canada." "The latest inflation data indicated food purchased from restaurants rose 8.2 per cent in January compared with the same month last year — up half a percentage point from December." for USA, from https://www.cbsnews.com/news/thanksgiving-restaurant-inflation-grocery-consumer-prices/ https://www.cbsnews.com/news/thanksgiving-restaurant-inflati...: "Restaurant prices are also elevated, but they have risen at a slower pace. The cost of food at restaurants and other vendors is up 5.8%, compared to food from grocery stores or supermarkets, which shot up nearly 10% from November 2021 to August 2022, Wells Fargo analysts noted in a report."
smileysteve 4y ago
I experienced a 100% increase to $7.50 in 18ct egg prices, followed by a 50% decrease to $3.60, as expected; But I heard others have only seen a 6% change?
skylanh 4y ago
This article has no analysis, insight, or data. It has a few singular datums, but doesn't establish any relations or context. Unless I missed it in a one page article. This is just click-bait without the annoying pop-ups.
- corbulo 4y ago
  They just mention the two biggest economic factors (bird flu and inflation) as an aside and then never address it again. What a joke. The Economist has a slant to be sure, but its usually higher quality than this. Sounds like there's a deeper motive to this article.
- crazygringo 4y ago
  Yeah I'm generally a big fan of the Economist but this article is just lousy. I'm mystified why they published it at all.
twawaaay 4y ago
Lots of companies playing on two fronts to maximise their earnings. On one side they try to excuse not giving raises, laying of employees. On the other side they use it to increase their prices. This would be fine if not for the fact they usually actually increase, not decrease their margins. General public is inept financially and does not understand we are being lied to. Even assuming there exists an economic downturn (which I do not believe there genuinely is one), it is not fine to complain about it when all you do is shift all the costs to the next person. I think current situation can be best explain as a series of excuses going viral between corporate C level execs. "They did what?! I guess if they got scott-free... what's stopping us from doing it?"
- bluefirebrand 4y ago
  The general public is financially literate enough to realize they are being screwed, even if they aren't exactly sure of how. But past that, the only reason that this behaviour is getting a pass is because people are being very passive in fighting it. That will only last so long.
  - Llamamoe 4y ago
    Humans are great at responding to situations they're in the middle of, and awful at doing anything about problems a few layers of abstraction above their everyday life. Corporations have departments to get around this problem, the average person doesn't.
mounram 4y ago
There is definitely something more than the inflation. Here in Toronto, the price is $2.8 US for a dozen.
ThrowawayTestr 4y ago
Explained by greed pretty easily.
- throwaway8582 4y ago
  Why weren't eggs ever expensive before the last couple years? Did corporations just suddenly become greedy around that time?
  - ThrowawayTestr 4y ago
    Now they can blame the pandemic and inflation.
    - prottog 4y ago
      They can always find something to blame. It doesn't answer the question.
tolstoshev 4y ago
"I don't understand why you buy eggs at seven cents a piece in Malta and sell them for five cents." "I do it to make a profit." "But how can you make a profit? You lose two cents an egg." "But I make a profit of three and a quarter cents an egg by selling them at four and a quarter cents an egg to the people in Malta I buy them from for seven cents an egg. Of course, I don't make the profit. The syndicate makes the profit. And everybody has a share." Yossarian felt he was beginning to understand. "And the people you sell the eggs to at four and a quarter cents a piece make a profit of two and three quarter cents a piece when they sell them back to you at seven cents a piece. Is that right? Why don't you sell the eggs directly to you and eliminate the people you buy them from?" "Because I am the people I buy them from," Milo explained. "I make a profit of three and a quarter cents a piece when I sell them to me and a profit of two and three quarter cents apiece when I buy them back from me. That's a total profit of six cents an egg. I lose only two cents an egg when I sell them to the mess halls at five cents apiece, and that's how I can make a profit buying eggs for seven cents apiece and selling them for five cents apiece. I pay only one cent a piece at the hen when I buy them in Sicily." "In Malta," Yossarian corrected. "You buy your eggs in Malta, not Sicily." Milo chortled proudly. "I don't buy eggs from Malta," he confessed... "I buy them in Sicily at one cent apiece and transfer them to Malta secretly at four and a half cents apiece in order to get the price of eggs up to seven cents when people come to Malta looking for them."
theropost 4y ago
Amazingly, this morning I found eggs at the local grocery for $1.99 (CAD) a dozen.
- chrisandchris 4y ago
  Meanwhile in Switzerland, you'll pay at least $6 for a dozen eggs. While I think it's an interesting economic indicator, does it matter that mich (if you consider eggs you eat as eggs, nor within another product)? Most people I know don't each that much eggs that they couldn't pay with 1-coffee-less-per-week.
brianjking 4y ago
It's explained mostly by the lack of competition in grocery stores. Not to mention that Albertsons & Kroger are trying to merge. If this is the case there will be essentially 2 grocery stores owning almost every other grocery store in the country. Welcome to hell.
- prottog 4y ago
  What happened to antitrust enforcement, anyway?
- QuarterReptile 4y ago
  Walmart, Kroger (Harris Teeter), Costco, Target, Aldi, Lidl, Food Lion. Those are the places within 15 minutes of me where I've bought eggs recently (or at least the ones that come to mind). What are you talking about?
  - brianjking 4y ago
    I'm talking about grocery stories becoming antitrust issues and monopolies. Just because they have different names doesn't make them other owners. * Start here: https://grocerystory.coop/who-owns-your-grocery-store https://grocerystory.coop/who-owns-your-grocery-store * https://www.fastcompany.com/90797301/kroger-albertsons-deal-antitrust-grocery-merger https://www.fastcompany.com/90797301/kroger-albertsons-deal-... * https://progressive.org/op-eds/grocery-store-monopolies-are-bad-news-shoppers-wolf-221121/ https://progressive.org/op-eds/grocery-store-monopolies-are-... * https://westseattleblog.com/2022/10/supermarket-mega-merger-5-of-west-seattles-11-grocery-stores-would-have-same-ownership/ https://westseattleblog.com/2022/10/supermarket-mega-merger-... Understand now?
    - angoragoats 4y ago
      I agree that monopolies are bad, but the grandparent listed 7 stores, and all are owned by different companies. I am similarly in an area where I can count at least 12 different grocery store parent companies, two of which are local and not in the big list in your first link. Maybe the monopolization is only happening in certain areas?
hnburnsy 4y ago
Now do soda, store brands 1.09 per liter Coke and Pepsi products 3.68.
morninglight 4y ago
In anticipation of Easter... ...they too have risen.
bkmeneguello 4y ago
Why is no one talking about the bird flu H5N1? Less birds is equals to fewer eggs! https://www.cdc.gov/flu/avianflu/avian-flu-summary.htm https://www.cdc.gov/flu/avianflu/avian-flu-summary.htm
- HWR_14 4y ago
  They mentioned in that the article.
- prepend 4y ago
  It takes 20 weeks for a hen to grow to egg laying age. The h5n1 culling should not still be impacting us to the extent that eggs are up 150% in price.
jl2718 4y ago
Large egg producers create bird flu panic, send regulators after small competitors. Small farms take the USDA insurance payout by torching their farms. Large egg farms profit increases 10x [1]. [1] https://calmainefoods.gcs-web.com/static-files/b0cebe03-d49f-4d51-8aff-8eacc74816d2 https://calmainefoods.gcs-web.com/static-files/b0cebe03-d49f...
eternityforest 4y ago
There's a lot of processed food that uses eggs. Most of it tastes like sawdust and sugar anyway. I highly doubt the eggs and milk are necessary. Perhaps they would be cheaper if we stopped using them for stuff that doesn't need them. But then again, I don't even remember the last time I bought eggs so I'm not exactly the best informed.

helsinkiandrew 4y ago

https://archive.ph/LixuC https://archive.ph/LixuC

deleted 4y ago
[deleted]

ibn_khaldun 4y ago

This is a terrifically written article.

deleted 4y ago
[deleted]
msrenee 4y ago
Is it? The only source they cite for the claim of price-gouging is a group that's against large scale animal production and GMOs. They've got their own reasons to make the accusation. Honestly, it's probably true, but then they discuss meat production where there are definitely some illegal trust activities going on and say that that group has not seen the same increase in prices. Do we not remember the last time avian flu hit the country's egg production hard? The price of eggs jumped massively. Once you identify avian flu in a flock the size that these facilities house, you're talking thousands or tens of thousands of chickens culled. A battery chicken lays an egg a day. That's thousands of eggs not being produced every day until those hens can be replaced. Add in inflation and I'm going to need to see some actual numbers if the author's going to claim that those factors aren't enough to explain the price jump. They also somehow missed a valid argument against factory farms. All of those birds packed into terrible conditions in massive numbers basically guarantees a massive culling of livestock every time the risk of avian flu is high. More numerous, smaller facilities where the animals aren't stressed out and in incredibly close proximity would mean that a single housing facility becoming infected would lead to fewer animals culled if a facility is exposed. It would be a much, much smaller impact on the market. The price of eggs would be higher than our current supply during healthy years, but wouldn't spike by 100% during high risk years. Something, something, don't put all your eggs in one basket. Or hens in a single, massive building.
- deleted 4y ago
  [deleted]
- nobodyandproud 4y ago
  The article also mentions: - Inflation, which can’t explain the price rise; as beef and chicken (meat) did not increase at the same rate. - Excess profits earned compared to earlier quarters; also difficult to explain if the company in question faced a massive loss. How is this not relevant?
  - msrenee 4y ago
    Where in the article does it mention chicken meat? I see pork, beef, and prepared foods. Excess profits can be caused by any number of things. If the price of the eggs increased exactly enough to match inflation and loss from avian influenza, but there was also increased efficiency from new processing techniques and equipment, that's profit. If they managed to pay their workers even less than they pay in a normal year by citing increased company costs, then they pocket that too. Again, you'd need to see actual numbers and not casual conjecture to make any real calls as to what's happening in this situation.
    - nobodyandproud 4y ago
      Sometimes, a picture is worth a thousand words. > If the price of the eggs increased exactly enough to match inflation and loss from avian influenza, but there was also increased efficiency from new processing techniques and equipment, that's profit What-if speculation with zero evidence—what new technology?—-is what I would call low quality. The article at least uses industry players and other related industries to underscore their point. Which is that an investigation may be coming and is warranted.

pigtailgirl 4y ago

—- 36 eggs still 6,400won! —-

bpiche 4y ago
It's like $9 for a dozen eggs at Target in the bay area now. You can still get a good deal at Costco, but yeah, it's super expensive. What's the normal price of eggs in Korea?
- frumper 4y ago
  I'm in the central valley and Target has a dozen eggs for $3.59. I was curious how it could be so much more in the bay area, but looking up an East Bay Target they're $3.59. San Francisco is $4.59. Maybe you haven't been in a while?
  - bpiche 4y ago
    Wow, now you are making me want to drive around and double check! Distinctly remember seeing a dozen eggs for at least 8 if not $9 at target in alameda a month or two ago. Am sure all the cheaper store brand eggs had sold out and was probably looking at free range eggs. And the price could have come down since then too. And everything's expensive in alameda. Glad to hear it!

ed25519FUUU 4y ago

We keep a small flock of backyard hens. Our feed prices went up by about 50%, but that was negligible for us given the retail price of eggs and how little commercial feed we buy. I think many homes would benefit from even a few birds, which can be fed almost exclusively from table scraps. It’s a win/win. Chickens compost for you and keep the food from going in a landfill, and you get eggs.

dieselgate 4y ago
Just makes walking around with clean feet difficult if there are chickens everywhere. Otherwise they’re great animals
poulsbohemian 4y ago
While it may be anecdotal, what you are sharing is really compelling, as feed in my (rural) area hasn't noticeably increased. This is the gist of what I see in a lot of sectors - there's price seeking happening. I'm finding going to the local restaurant supply store, prices are still what I would expect for the things I buy. Those same items are 3x at the national brand grocery stores. That tells me it's not about supply and demand or you'd see price increases universally, rather than only at those stores that are gouging their customers to see if they can get away with it.
- canucker2016 4y ago
  People have noticed the disconnect between restaurant prices and grocery store prices. I have no idea who is increasing prices more than their suppliers have increased prices. for Canada, from https://ottawa.citynews.ca/national-business/canadians-making-fewer-trips-to-the-grocery-store-as-inflation-pinches-rbc-report-6673205 https://ottawa.citynews.ca/national-business/canadians-makin...: "Grocery prices grew by 11.4 per cent year-over-year in January ... according to the latest data released by Statistics Canada." "The latest inflation data indicated food purchased from restaurants rose 8.2 per cent in January compared with the same month last year — up half a percentage point from December." for USA, from https://www.cbsnews.com/news/thanksgiving-restaurant-inflation-grocery-consumer-prices/ https://www.cbsnews.com/news/thanksgiving-restaurant-inflati...: "Restaurant prices are also elevated, but they have risen at a slower pace. The cost of food at restaurants and other vendors is up 5.8%, compared to food from grocery stores or supermarkets, which shot up nearly 10% from November 2021 to August 2022, Wells Fargo analysts noted in a report."

smileysteve 4y ago

I experienced a 100% increase to $7.50 in 18ct egg prices, followed by a 50% decrease to $3.60, as expected; But I heard others have only seen a 6% change?

skylanh 4y ago

This article has no analysis, insight, or data. It has a few singular datums, but doesn't establish any relations or context. Unless I missed it in a one page article. This is just click-bait without the annoying pop-ups.

corbulo 4y ago
They just mention the two biggest economic factors (bird flu and inflation) as an aside and then never address it again. What a joke. The Economist has a slant to be sure, but its usually higher quality than this. Sounds like there's a deeper motive to this article.
crazygringo 4y ago
Yeah I'm generally a big fan of the Economist but this article is just lousy. I'm mystified why they published it at all.

twawaaay 4y ago

Lots of companies playing on two fronts to maximise their earnings. On one side they try to excuse not giving raises, laying of employees. On the other side they use it to increase their prices. This would be fine if not for the fact they usually actually increase, not decrease their margins. General public is inept financially and does not understand we are being lied to. Even assuming there exists an economic downturn (which I do not believe there genuinely is one), it is not fine to complain about it when all you do is shift all the costs to the next person. I think current situation can be best explain as a series of excuses going viral between corporate C level execs. "They did what?! I guess if they got scott-free... what's stopping us from doing it?"

bluefirebrand 4y ago
The general public is financially literate enough to realize they are being screwed, even if they aren't exactly sure of how. But past that, the only reason that this behaviour is getting a pass is because people are being very passive in fighting it. That will only last so long.
- Llamamoe 4y ago
  Humans are great at responding to situations they're in the middle of, and awful at doing anything about problems a few layers of abstraction above their everyday life. Corporations have departments to get around this problem, the average person doesn't.

mounram 4y ago

There is definitely something more than the inflation. Here in Toronto, the price is $2.8 US for a dozen.

ThrowawayTestr 4y ago

Explained by greed pretty easily.

throwaway8582 4y ago
Why weren't eggs ever expensive before the last couple years? Did corporations just suddenly become greedy around that time?
- ThrowawayTestr 4y ago
  Now they can blame the pandemic and inflation.
  - prottog 4y ago
    They can always find something to blame. It doesn't answer the question.

tolstoshev 4y ago

"I don't understand why you buy eggs at seven cents a piece in Malta and sell them for five cents." "I do it to make a profit." "But how can you make a profit? You lose two cents an egg." "But I make a profit of three and a quarter cents an egg by selling them at four and a quarter cents an egg to the people in Malta I buy them from for seven cents an egg. Of course, I don't make the profit. The syndicate makes the profit. And everybody has a share." Yossarian felt he was beginning to understand. "And the people you sell the eggs to at four and a quarter cents a piece make a profit of two and three quarter cents a piece when they sell them back to you at seven cents a piece. Is that right? Why don't you sell the eggs directly to you and eliminate the people you buy them from?" "Because I am the people I buy them from," Milo explained. "I make a profit of three and a quarter cents a piece when I sell them to me and a profit of two and three quarter cents apiece when I buy them back from me. That's a total profit of six cents an egg. I lose only two cents an egg when I sell them to the mess halls at five cents apiece, and that's how I can make a profit buying eggs for seven cents apiece and selling them for five cents apiece. I pay only one cent a piece at the hen when I buy them in Sicily." "In Malta," Yossarian corrected. "You buy your eggs in Malta, not Sicily." Milo chortled proudly. "I don't buy eggs from Malta," he confessed... "I buy them in Sicily at one cent apiece and transfer them to Malta secretly at four and a half cents apiece in order to get the price of eggs up to seven cents when people come to Malta looking for them."

theropost 4y ago

Amazingly, this morning I found eggs at the local grocery for $1.99 (CAD) a dozen.

chrisandchris 4y ago
Meanwhile in Switzerland, you'll pay at least $6 for a dozen eggs. While I think it's an interesting economic indicator, does it matter that mich (if you consider eggs you eat as eggs, nor within another product)? Most people I know don't each that much eggs that they couldn't pay with 1-coffee-less-per-week.

brianjking 4y ago

It's explained mostly by the lack of competition in grocery stores. Not to mention that Albertsons & Kroger are trying to merge. If this is the case there will be essentially 2 grocery stores owning almost every other grocery store in the country. Welcome to hell.

prottog 4y ago
What happened to antitrust enforcement, anyway?
QuarterReptile 4y ago
Walmart, Kroger (Harris Teeter), Costco, Target, Aldi, Lidl, Food Lion. Those are the places within 15 minutes of me where I've bought eggs recently (or at least the ones that come to mind). What are you talking about?
- brianjking 4y ago
  I'm talking about grocery stories becoming antitrust issues and monopolies. Just because they have different names doesn't make them other owners. * Start here: https://grocerystory.coop/who-owns-your-grocery-store https://grocerystory.coop/who-owns-your-grocery-store * https://www.fastcompany.com/90797301/kroger-albertsons-deal-antitrust-grocery-merger https://www.fastcompany.com/90797301/kroger-albertsons-deal-... * https://progressive.org/op-eds/grocery-store-monopolies-are-bad-news-shoppers-wolf-221121/ https://progressive.org/op-eds/grocery-store-monopolies-are-... * https://westseattleblog.com/2022/10/supermarket-mega-merger-5-of-west-seattles-11-grocery-stores-would-have-same-ownership/ https://westseattleblog.com/2022/10/supermarket-mega-merger-... Understand now?
  - angoragoats 4y ago
    I agree that monopolies are bad, but the grandparent listed 7 stores, and all are owned by different companies. I am similarly in an area where I can count at least 12 different grocery store parent companies, two of which are local and not in the big list in your first link. Maybe the monopolization is only happening in certain areas?

hnburnsy 4y ago

Now do soda, store brands 1.09 per liter Coke and Pepsi products 3.68.

morninglight 4y ago

In anticipation of Easter... ...they too have risen.

bkmeneguello 4y ago

Why is no one talking about the bird flu H5N1? Less birds is equals to fewer eggs! https://www.cdc.gov/flu/avianflu/avian-flu-summary.htm https://www.cdc.gov/flu/avianflu/avian-flu-summary.htm

HWR_14 4y ago
They mentioned in that the article.
prepend 4y ago
It takes 20 weeks for a hen to grow to egg laying age. The h5n1 culling should not still be impacting us to the extent that eggs are up 150% in price.

jl2718 4y ago

Large egg producers create bird flu panic, send regulators after small competitors. Small farms take the USDA insurance payout by torching their farms. Large egg farms profit increases 10x [1]. [1] https://calmainefoods.gcs-web.com/static-files/b0cebe03-d49f-4d51-8aff-8eacc74816d2 https://calmainefoods.gcs-web.com/static-files/b0cebe03-d49f...

eternityforest 4y ago

There's a lot of processed food that uses eggs. Most of it tastes like sawdust and sugar anyway. I highly doubt the eggs and milk are necessary. Perhaps they would be cheaper if we stopped using them for stuff that doesn't need them. But then again, I don't even remember the last time I bought eggs so I'm not exactly the best informed.