Robert Besser
25 Jan 2023, 04:36 GMT+10
WASHINGTON D.C.: In a letter sent out this week, farm advocacy group Farm Action said that as Americans continue to pay more than ever for eggs, the Federal Trade Commission should examine high egg prices for signs of price fixing by major egg companies.
According to the Bureau of Labor Statistics, the price of eggs rose 138 percent in December from 2021, to $4.25 a dozen.
In its letter to FTC chair Lina Khan, Farm Action stressed that while the US Department of Agriculture blamed avian flu for high egg prices, the country's antitrust regulator should also investigate the record-high profits of leading egg companies.
According to a late December filing with the Securities and Exchange Commission, Cal-Maine Foods, which controls 20 percent of the retail egg market in the United States, reported a quarterly sales rise of 110 percent and gross profits of more than 600 percent, over the same quarter in the previous fiscal year.
The company said its record sales were due to the fact that lower national egg supplies due to avian flu drives up prices, despite there being no positive avian flu cases on any of its farms.
USDA data showed that in October, US egg production was some 5 percent lower than last year, while egg supplies were down 29 percent in December, compared to the start of the year.
"We want the FTC to dig in and see if consumers are being price gouged," said Basel Musharbash, a lawyer representing Farm Action, as quoted by Reuters.
In a statement, Cal-Maine said that higher production costs, along with avian flu, caused higher prices.
In a statement, egg marketing group American Egg Board said that egg prices are influenced by various factors, adding that wholesale egg prices are beginning to drop.
Get a daily dose of Wisconsin Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Wisconsin Star.
More InformationMOUNT PLEASANT, Michigan: This week, a judge sentenced a Michigan man who kept his dead wife's body in a freezer ...
ATLANTA, Georgia: After two consecutive years of declines mainly caused by the COVID-19 pandemic, babies born in the U.S. in ...
The number of soldiers in the Israeli army killed in the current Israel-Hamas war has topped 400. Three hundred and ...
MOSCOW, Russia: A Russian court has extended the detention of Evan Gershkovich, a U.S. reporter for the Wall Street Journal, ...
Israel intensified its deadly bombardment of the Gaza Strip Saturday as renewed fighting with Hamas entered a second day following ...
ARLINGTON, Virginia: This week, the conservative U.S. political network Americans for Prosperity Action (AFP Action), led by billionaire Charles Koch, ...
This campaign explores ice hockey players' influence and popularity beyond their National Hockey League (NHL) careers. The goal was to ...
(Photo credit: Grace Hollars/IndyStar / USA TODAY NETWORK) After outlasting Texas Tech in overtime in a high-scoring Big East-Big 12 ...
(Photo credit: Timothy T. Ludwig-USA TODAY Sports) The Nashville Predators are back to playing uneven hockey after using a six-game ...
(Photo credit: Chris Pedota, NorthJersey.com / USA TODAY NETWORK) After a three-game losing streak, the Atlanta Falcons are in position ...
(Photo credit: James Guillory-USA TODAY Sports) The last time the New York Islanders were home long enough to unpack their ...
(Photo credit: David Kirouac-USA TODAY Sports) The Detroit Red Wings have been hot since right before Thanksgiving and hope to ...