Listen to this article The Largest US Egg Producer Sees Profits Surge By Over 700% As Egg Prices Skyrocket
Cal-Maine Foods, the largest egg producer in the United States, recently reported impressive earnings for the last quarter, with a doubling of revenue and a surge in profit of 718%. The surge was due to a significant rise in egg prices, which reached $3.30 per dozen, more than double the previous year’s average of $1.61 per dozen. Cal-Maine Foods holds around 20% of the US egg market, according to Reuters.
Revenue Doubles Despite Slight Increase in Egg Sales
Although the total number of eggs sold by the company increased by just 1%, Cal-Maine Foods still managed to increase its overall revenue by 109%, reaching an impressive $997.5 million. This impressive growth exceeded market forecasts and was driven by the significant increase in egg prices.
Avian Flu Outbreak Does Not Affect Cal-Maine Foods
The recent outbreak of avian flu, which has forced many US farmers to cull millions of egg-laying hens, has not affected Cal-Maine Foods. The company reported that there have been no positive tests for avian flu at any of its owned or contracted production facilities. This means that the company has not experienced the same level of disruption to its production as some of its competitors.
Criticism of Egg Producers for Pricing Decisions
Despite the significant rise in egg prices, Cal-Maine Foods and other major egg producers have faced criticism from some politicians, who accuse them of profiteering and price gouging. In a letter sent to Cal-Maine Foods and other companies, Sen. Elizabeth Warren and Rep. Katie Porter expressed concern over the increased prices and urged the companies to provide clarity on their pricing decisions.
Egg Prices Remain High Despite Slight Retreat
Egg prices have started to retreat slightly, according to the government’s most recent inflation reading for February. However, they are still up more than 55% from a year earlier.
This suggests that egg prices are likely to remain high for some time, and it is uncertain how they will affect consumers and the broader egg market in the long run.Read more: The Largest US Egg Producer Sees Profits Surge By Over 700% As Egg Prices Skyrocket