Jan 19 (Reuters) – The Federal Trade Commission (FTC) needs to look at high egg prices for signs of price gouging by top companies, one farmer said.
U.S. regulators, farmers, and industry have spoken in recent years about the power of top farm companies to set prices and raise what consumers pay for groceries, much like they did when beef prices soared in 2021. have often been discussed.
The latest concern is eggs, which jumped 138% year-over-year in December to $4.25 per dozen, according to the Bureau of Labor Statistics.
The United States Department of Agriculture (USDA) points to record bird flu outbreaks as the reason for the high prices. But the country’s antitrust regulators also need to look into record profits for the top egg company, Farm Action said Thursday. letter To FTC Chairman Rina Khan.
Carmain Foods (calm down)It controls 20% of the retail egg market.
The company cited declining egg supplies nationwide as bird flu pushed up prices as the reason for the record sales.
U.S. egg production in October was about 5% lower than last year, and December egg stocks were down 29% from the start of the year, according to the latest USDA data. Basel Musherbash, a lawyer for Farm Action, said prices were skyrocketing.
“We want the FTC to investigate whether consumers are being inflated,” Musharbash said.
The FTC declined to comment.
In a statement, Cal-Maine said rising production costs, along with bird flu, contributed to the higher prices.
The American Egg Board, an egg marketing organization, said in a statement that egg prices reflect a variety of factors and that wholesale egg prices have begun to fall.
Nearly 58 million chickens and turkeys have been killed to control the spread of bird flu or viruses since early 2022, mostly in March and April, according to the USDA. The previous largest outbreak in 2015 killed 50.5 million birds.
Cal-Maine shares have fallen in recent weeks after gaining nearly 50% last year.
Reporting by Leah Douglas Editing by Bill Berkrot and Alistair Bell
Our criteria: Thomson Reuters Trust Principles.
