Record high egg prices in U.S.-Lawmakers looking for answer
2023.02.16 14:55
Record high egg prices in U.S.-Lawmakers looking for answer
By Tiffany Smith
Budrigannews.com – According to copies of the letters seen by Reuters, two U.S. lawmakers have sought explanations for why egg prices have reached record highs in recent months. They have written to the nation’s top egg companies.
According to the Bureau of Labor Statistics, the price of a dozen eggs in January increased by 150 percent from a year earlier to $4.80. This has raised concerns among farmers and antitrust advocates, who have expressed concerns regarding the power of major agricultural companies to set prices.
Senator Elizabeth Warren of Massachusetts and Representative Katie Porter of California wrote, “American families working to put food on the table deserve to know whether the increased prices they are paying for eggs represent a legitimate response to reduced supply or out-of-control corporate greed.”
The letters were sent to Cal-Maine Foods (NASDAQ:) CEOs on Thursday morning. Daybreak Foods, Versova Management, Hillandale Farms, and Rose Acre Farms
The avian flu, which has killed more than 58 million chickens and turkeys since the beginning of 2022, has been cited by the U.S. Department of Agriculture as the cause of high prices. However, a farm organization recently requested that federal regulators investigate whether egg companies were slashing prices.
The lawmakers requested information on executive compensation, profit margins, the effects of the avian flu, and whether businesses have communicated about egg prices with one another because they said the rise in prices raises concerns about anti-competitive behavior.
Only Cal-Maine Foods is open to the public, and it owns about 20% of the US egg market. In a filing with the Securities and Exchange Commission at the end of December, the business stated that gross profits had increased by 600%.
When asked for their opinions, Cal-Maine, Daybreak, Hillandale, Rose Acre, and Versova did not immediately respond.
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