The largest egg producer in the United States has announced a flambé of profits, consumer prices, record prices thanks to avian flu – and the alleged price conduct which is the subject of a survey by the Ministry of Justice.
The profits of Cal -Maine have more than tripled compared to the same quarter of last year – and are almost eight times higher than at the start of the bird flu epidemic in February 2022, according to the financial results published on Tuesday.
The company, which produces 20% of eggs eaten in the United States, has produced $ 1 billion in round income during the first three quarters of the financial year – the benefits extracted after having taken charge of the costs of production, processing and transport.
Meanwhile, consumer prices reached $ 5.90 per dozen in February – almost double the price of eggs only 12 months earlier, and triple the average cost at the start of the bird flu epidemic, according to the Bureau of Labor Statistics.
The price of eggs was a major problem in the 2024 elections, with Donald Trump and many voters accusing inflationary prices above Joe Biden’s economic policies.
In March, the Guardian reported how large egg companies such as Cal-Maine can use avian flu as a pretext to increase prices. A few days later, the Trump administration opened an investigation into pricing by the largest egg companies in the country, including Cal-Maine.
On Tuesday, Cal-Maine said that its sales almost doubled to reach $ 1.42 billion in the third tax quarter, which ended on March 1, mainly to increase the prices of eggs, which injured consumers who count on the former protein source.
But the actions of the company then fell by more than 4% after recognizing that it was the subject of a survey by the anti-trust division of the Ministry of Justice. Cal-Maine, based in Mississippi, said that she had received an opinion on the survey of egg prices increases last month and that she cooperated in the investigation.
“Cupidity of companies contributes to egg prices. While the Americans find it difficult to put food on the table, Big AG ratisse in billions, using the crisis as a cover to harvest high profits, “said Amanda Starbuck, research director at Food & Water Watch (FWW), a consumer defense group.
“If President Trump has an interest in making his campaign commitment to reduce food prices, he must start by facing food monopolies exploiting the pandemic threat for profit. He can start by accelerating and prioritizing his investigation into the fixing of corporate prices. ”
The egg production industry – such as the retail sector to which producers sell mainly – is very concentrated. This gives a handful of large companies the possibility of influencing prices apart from the impact of shocks such as avian flu and COVVI-19 pandemic on supply and demand.
A recent FWW investigation exclusively shared with The Guardian, the economic cost of food monopolies: the rotten oligarchy of eggs, details how Cal-Maine used the crisis in the flu to harvest profits by increasing consumption prices. Cal -Maine did not experience any bird flu epidemic in his herds during his 2023 exercise – and in fact sold more eggs in 2023 than in the previous two years.
Cal-Maine was contacted to comment.
