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Is the egg market collapsing?
I just saw eggs at $3.06 for a 36 pack at my local Walmart. Not too long ago a 12 pack was pushing close to $7.00 in my area.
What’s up with that? Is the greedy egg price gouging catching up with the farms or something?
Wasn’t sure where to put this one.
The high egg prices for a while were due to needing to cull large numbers of hens due to disease concerns and having that dovetail with general inflationary pressure.
It takes about 6 months for a hen to mature to start laying eggs and I think a year before they’re at peak production. So a couple of years to replenish the population seems right.
Thank you for the insight.
I wonder if falling egg prices will stabilize other food prices since eggs are a base ingredient for many things?
A lot of people were misled by general internet and a couple of media companies who published totally unsourced and unvalidated comments from a couple of activists groups (some conglomerate of farmers I believe) about how the egg companies were gouging prices.
In reality, the egg market was never organized or consolidated enough that such a thing could happen. The egg prices rose thanks to events going on at the time, and now they're dropping thanks to the same.
There were no real economists or government regulators or anyone with real understanding who was concerned that price gouging was going on. It was because of the bird flu.
If you read and believed media sources about how egg prices were being price gouged, reconsider what you trust and how skeptical of the companies that published that information, because you were fooled and misled by them.
Thank you for the info.
I’ll admit I didn’t do too much research into it and I’m unfortunately predisposed to cynicism.
I fully expect some companies to take advantage of the situation. I’m not 100% trusting of the market to be honest. In some part from being exposed to a market that IS gouging and will absolutely have trickle down effects into other parts of the market.
But this has led to some deeper research on the egg subject that I, admittedly, should have done. Sadly, it’s so easy to give in to outrage.
I support a bias towards cynicism but I would posit that same bias should be directed towards the media as well.
yep, bulk eggs are going back to lower prices. A consequence of the crazy egg prices was that I ended up buying higher quality eggs as they were already expensive earlier and the relative increase wasn't as massive as the regular quality eggs. I don't think I can go back now, the nice eggs have a much more orange yolk, creamy texture when cooked, and a distinctly eggy-er taste. They might be $5-6 a dozen, but the difference to me is so worth it.
I'd also like to think that the priceier free range eggs come with better treatment of animals too.....those poor girls, sitting in a metal cage their whole lives 😭
One thing I'd note is that price gouging is practically undefined. It's basically based off of vibes.
Legally in the US, the typical laws around "price gouging" are oriented around two questions: 1) whether or not it is a period of emergency 2) whether the item is necessary for life. In that respect, the egg prices were not "price gouging".
But in the end, what "price gouging" is, is the natural phenomena when there's a demand spike in a market, in a time where that is considered uncouth. The latter, is, of course a very subjective definition - it's, again, basically on vibes.
The egg prices were caused by avian flu causing flocks to be culled. This caused all of the egg demand to fall on fewer suppliers. The price, therefore, went up. Is it gouging? Depends on the vibes! If you feel it's unaesthetic for eggs to increase in price, it could be price gouging!
I think there's a lot of confusion between "price gouging" and "cartels". A cartel is where a group of producers collude amongst themselves to artificially raise prices. The price increase is "artificial" in this case, because the "natural" thing to happen when you increase prices is that competitors become more competitive against you, and eat at your sales. Instead, you collude, so no one undercuts each other. That's not price gouging, that's collusion.
An example of a cartel is OPEC+, which is very transparently a cartel. Just between nation states, so there's not much you can do about it. Unless you want Iraq War p2, can't regulate what sovereign nation states want to do.
One point often brought up on the internet is that egg producers increased their profit margin during this period, and this was usually brought up as a "gotcha" that it is price gouging. But... that's exactly what's supposed to happen when demand spikes? Ditto for oil producers. It's... very obvious their margins would increase? If inflation is demand-pull instead of supply-push, then it'd also be normal for margins to increase? I feel like the internet collectively forgot the "demand" part of supply and demand.
Thats a good price, I'm in canada and get special deals on the app to get a 12 pack for $2.99, so I assume the normal price is a bit above that
I buy a six pack of eggs in England for £3. I live in London - where the shops tend to be smaller and more expensive - though.
Fellow Canadian here. Pc app? Or is there something even better I'm missing out on?
Yes I'm talking about the PC optimum app, I get deals for your independent grocer because its the store I shop at most
My eggs have actually started going up.
I noticed ~3 weeks ago 5 dozen eggs at BJ’s was $5, then about a week ago when I checked it was $6, and now it’s $7. (All rounded)
Wonder why that is.
Weird. How does that compare to the “nicer” eggs like the free range and organic eggs?
Wellsley Farm’s free-range eggs are $3.50/dozen, organic free-range $5/dozen.
I’m not sure how its price has changed though.