According to a news report, the Department of Justice (DOJ) is investigating accusations that large producers conspired to raise and keep egg prices high.
The news was broken on Friday when the Wall Street Journal reported that “anti-trust enforcers are investigating whether large producers are engaged in anti-competitive behavior.”
The DOJ sent letters to several egg companies and asked them to store documents about pricing conversations with customers and competitors. Authorities also asked the egg companies to store communications with expana that tracks egg companies and egg price information, the WSJ reported.
Eggs have more than tripled in price since 2020, according to data cited by the WSJ based on information from the labor sector. It rose exponentially over the next three years, struck just under $5 in 2023, then fell to about $2 in a short time, but then returned to its current highest point and climbed.
More than avian flu
The nonprofit farm action praised the news of the investigation, pointing to a lengthy suspicion that egg prices are higher than the most commonly cited perpetrator, the bird flu.
The bird flu is real, but it's not an excuse for the price that will be charged to one of the nation's staples at grocery stores. While an analysis of farm behavior shows the potential antitrust abuse by companies that produce dominant eggs, the DOJ has the legal authority to dive deep into the industry needed to reach the bottom of this abuse, and has the power to bring justice on behalf of Americans.
The farm lawsuit sent a letter to the Federal Trade Commission in January 2023, urging an investigation into the egg industry and prosecution for violations of antitrust laws. The nonprofit claimed that the 2022 avian flu outbreak should not lead to such a sharp rise in prices. The observed “price rise” in the egg sector was “a lot greater than a decline in production,” concluded that “disruption in other supply chains and increased input costs will not justify dominant egg producers' price hikes more than three times.” Farm action noted that over the 26 weeks ending November 26, 2022, Cal-Maine reported a 10x increase in profits compared to the previous year. That gross profit rose in “Lock Step” with egg prices rising every quarter of the year.
An unreasonable reaction
While good old days' collusion is the main suspect in the latest reports, there is no doubt that the government's response to avian flu actually reduced egg supply. More than 150 million egg-selling chickens and turkeys have been culled since 2022 to combat and prevent the outbreak of bird flu. Emily Metz, CEO of the American Egg Commission, said that even young birds were killed by the avian flu, causing egg producers to struggle to re-happen the flock.
Some livestock experts have criticized the measure as enthusiastic, inappropriate and, worst, unnecessary. Homestead and farming expert Joel Saratin pointed to an irrational approach of culling the entire flock without even protecting the survivors.
What guides me about avian flu is the response to it. There are always survivors in bird flu flocks. If the person in charge had actually thought, they said, “Here's a flock of chickens, some got it, some didn't. Why don't we save those that aren't, we'll take their genetics and breed them, and maybe they'll breed with a more robust immune system.” … (But) No. If there are 10,000 birds in the flock, one bird influenza must be eradicated all immediately by government order. All of them. …The entire avian flu programme is about extinction. That's not really a way to get ahead of the illness.
More government interference
The government announced it would take steps to lower prices before considering collusion among egg producers. Agricultural Secretary Brooke Rollins decided on five strategies at the end of February.
The first step includes an allocation of $500 million to help poultry producers implement “gold standard” biosecurity measures. This will provide a free biosecurity audit for producers affected by the avian flu. The USDA also dispatches trained epidemiologists to provide advice to producers. Another component of this step includes implementing hygiene measures such as knocking down the vehicles of people working at egg facilities, ensuring workers wear protective gear and allowing workers to shower before entering the facility and departing.
The second step involves having a faster recovery as farmers affected by the avian flu include up to $400 million in drainage.
Rollins also said they would consider the possibility that the USDA would use vaccines and therapeutics to prevent the outbreak of avian influenza. Currently, agents are considering poultry vaccines but have not allowed them.
This part of the plan was challenged by the head of another government agency. Health and Human Services Secretary Robert F. Kennedy Jr. said all three agencies he overseen are opposed to the step.
These vaccines actually provide sterile immunity, and all three of my health agencies, the NIH (National Institutes of Health), the Centers for Disease Control and Prevention (CDC), and the FDA (Food and Drug Administration), and the acting directors of these agencies are all recommended for the use of avian fluid vaccines.
Kennedy said the opponents were based on concerns that vaccinated poultry transforms birds into “mutant plants” and “worried about genetic changes in the virus.” Others went a step further, saying that vaccinated poultry could cause mutations that lead to human infections. The USDA says it will step into this area very carefully.
Want to roll back regulations?
According to Rollins, the fourth step the USDA is considering is removing unnecessary restrictions that prevent producers from doing their best. She pointed to a particular state as an example of what not to do.
This includes examining the best ways to protect farmers from overly normative state law, such as California's proposal 12, which establishes minimum space requirements for spawning hens, increases production costs, and contributes to $9.68 per $9.68 per average Golden State price.
The Trump administration is also considering importing supplies to temporarily strengthen eggs. However, he said he would be careful about predicting pushbacks to ensure quality standards are met.
Backyard chicken
And finally, USDA wants to make it easier for families to raise chickens. Although Rollins did not provide much details for this part of the plan, people in the opinion section of the Washington Post considered this the easiest part of the fun. “Are you frustrated with the price of eggs? Just raise your own chickens!” Opinion contributor Katherine Lampel squealed on Sunday.
It is obviously true that no one wants to raise chickens, but it is also true that many people weren't because of local regulations. At least half of Americans live in the suburbs. Most of them have enough gardens to keep a few chickens. The stupid thing is not a suggestion that more people should keep chickens, but that everyone has departed something with no real downside. In addition to being able to access eggs in your own backyard, maintaining your chickens is just a bit self-sufficient. Covid Mania demonstrates some of the vulnerabilities of modern international supply chains. The outbreak of legally fatal diseases can disrupt food supply at a devastating rate. This realization serves as a major catalyst for the rise of homes among Americans.
Another reason why people become more self-sufficient is the existing threat to food security. Globalists attacked beef farming and proposed elimination of meat. The carbon capture pipeline scheme threatens the property rights of America's most productive farmers. And across Europe, globalists have worked hard to limit the use of fertilizer and reduce the amount of available farmland.
Avian flu enthusiasts increase egg prices, but experts gain the feature is a real threat
Engineering food prices
Make America sick, one bite at a time
There are no farmers or food
