The price of eggs in America cannot be explained by inflation alone
economist.com
economist.com
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?"
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.
Unless I missed it in a one page article.
This is just click-bait without the annoying pop-ups.
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.
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.
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.
for Canada, from 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-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."
sadly, there are so many HOAs that crack down on this kind of stuff and don't want people to be self sufficient.
We're also experimenting with fermenting their feed, which should stretch it about 20% further. For that I dump a cup of it out in the morning, so no issue with rats.
I just ran a very generous estimate and I would shocked if your savings at peak egg price are more than $4 per labor hour. To get to that number I assumed $5 per dozen at the grocery store, five chickens at your house, an enormous production and consumption of eggs, very cheap overhead, and only thirty minutes a day of chicken care and harvesting.
Few households can benefit from a $4 an hour second job. Great hobby if you're doing well, of course, but a really bad use of finite time for anybody else. Let alone how few people have the land.
I assume this translates into increased nutritional quality. A partially free range diet with plenty of grass and insects and some good supplementation helps.
The security of a consistent supply is nice. Eggs are just there. Enough to share most of the year. No need to remember or pick them up at the store which is another (minor) effort that should be taken into account in comparing cost/effort.
The setup is a bit expensive. I find the whole thing entirely worth it though. If you do it right the eggs are night and day different from store eggs.
I also don't think anyone is doing it because they think they can compete on prices with an industrial farm that keeps all of the hens locked up in a 2x2 foot battery cage their entire lives.
My hens are happy, they forage for bugs all day long (creating those delicious, dark-yellow yolks high in omega-3s), and gladly consume all of my excess food waste which would otherwise go into a landfill.
Also, great sense of sastifaction, great job for my kids, and I like being just a tiny bit more self reliant.
I’m comfortable investing this amount of time, not sure I could use it more productively. Obviously this equation will be different for different folks but my point is barrier to entry is very low. It’s why poor people in Latin America grow chickens, easy and cheap to do and gets you eggs and meat.
Guess I’m reminded of a Simpson episode where the old grandpa is complaining someone stole his limited time from him and then says “never mind, I wasn’t going to do anything else with it anyways.”
Edit: I was reminded below of another benefit. They control pests and eat ticks.
But I heard others have only seen a 6% change?
Welcome to hell.
What are you talking about?
* Start here: https://grocerystory.coop/who-owns-your-grocery-store
* https://www.fastcompany.com/90797301/kroger-albertsons-deal-...
* https://progressive.org/op-eds/grocery-store-monopolies-are-...
* https://westseattleblog.com/2022/10/supermarket-mega-merger-...
Understand now?
Maybe the monopolization is only happening in certain areas?
[1] https://www.grocerydive.com/news/how-the-kroger-albertsons-m...
Thank you for the links though.
For example, I live within a few minutes drive of a QFC (Kroger) and an Albertsons, and a Safeway. If they merge, there will be 0 competition outside of a Walmart and you know how that goes...
If you get into who owns the products we consume it's even worse, this is a study that looks at a bit of both the distribution at grocery stores as well as who owns and manufacturers the food products we consume: https://www.foodandwaterwatch.org/wp-content/uploads/2021/11...
It's...not great.
...they too have risen.
[1] https://calmainefoods.gcs-web.com/static-files/b0cebe03-d49f...
But then again, I don't even remember the last time I bought eggs so I'm not exactly the best informed.
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.
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.
- 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?
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.
> 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.