Egg prices skyrocketed in the U.S. last year, hitting a record $5.40 for a dozen in December. Cheddar News speaks with Sarah Carden, Policy Advocate at Farm Action, who is calling for a government investigation into price gouging by major egg producers.


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Farm Group Calls For Investigation Into U.S. Egg Prices

Among the many food items that have risen in price this past year though one food staples seen the steepest increases and that's eggs, a dozen of eggs costs around a dollar and 50 cents a year ago and they're now selling for more than double that price. Well, eggs actually hit a record of $5.40 a dozen in the week before christmas. And according to the nonprofit Farm Action, it's because major egg producers are raising prices to boost their own profits. Well, joining me now is Sarah Cardigan, senior policy advocate of Farm Action, which recently penned a letter to the FTC to investigate prices. Sarah, thanks so much for coming on the show. And what evidence here shows that these large companies are boosting egg prices for profits. Yeah, thank you. That's a great question. So we looked at the numbers and you know, as you cited the egg prices have more than doubled over the past year. Um you know, egg producers have been citing avian flu, which is a real outbreak, but when we look at the numbers on that we're seeing, the average flock size has never really decreased over the month by month, basis for more than 6-8% from the previous years. And much of this decrease in terms of egg production was tempered by record high lay rates. So meanwhile, when we look at financial reportings, cal maine who is the largest egg producer in the country Last year, reported only a 22% increase in their farm production and feed costs. And yet they reported a tenfold increase in their gross profits and a five-fold increase in its gross margins. So obviously we've seen that there have been some factors at play here. But I think what you're what you're showing sarah is that profits have been much more lucrative simply because of the times than perhaps they otherwise would be just based on market factors. Any sort of sense as to what a going price of eggs should actually be right now and should have been throughout last year. Well Okay, so let's take their, you know, their 22% increase in in expenses. You know, so we would, you know, maybe should expect to see a more justifiable increase would be in the range of 25% maybe, 50%. So you know. eggs in december of 2021 were around a dollar 79 a dozen. So that we would see, we would expect to see something more in line with 2 20 for 2 to 69 range. But instead we're seeing as you cited, you know, over for $5 a dozen. What kind of action do you want to see? I know farm action obviously the company or the organization, the farm group that you're a part of penning that letter to the F. T. C. What do you want to see in the wake of this? Yeah. So the FTC has the authority to investigate. Uh So we've presented them with the evidence. We are encouraging the FTC. And we've also cited this for the DOJ and the U. S. D. A. To support this investigation, um, and ideally to get the american people their money back. So we stand ready to work with the FTC on this and in future cases. All right, Sarah Carden, senior policy advocate of Farm Action. Sarah, thanks so much for coming on the show.