Egg prices soar to record high as DOJ investigates America’s largest egg producer
Egg prices are still rising at the store, even as wholesale costs declined in recent weeks.
The price of a dozen white, large eggs clocked in at record high of $6.23 in March, up from the previous record high of $5.90 in February.
“Wholesale prices were moving up in February, so higher retail prices in March doesn’t seem a surprise. The decline in wholesale prices really started in March, so maybe the next report will have some lower prices,” Texas A&M University professor David Anderson told Yahoo Finance.
Egg prices brought overall food at home inflation higher, up 2.4% year over year, per the latest CPI data. Other stubbornly higher items include instant coffee and uncooked ground beef.
Read more: $6 eggs and other inflation pain points: Here’s where prices are rising
Anderson explained that higher beef prices have some “seasonality at work.”
“It’s grilling season already, for some of us, and for steaks and ground beef, that probably leads to some higher prices,” he said.
Egg inflation jumped 60.4% compared to a year ago and 5.9% on a month-over-month basis. That’s the smallest increase in recent months, compared to 10.4% and 15.2% jumps in the previous months.
Overall food inflation is up 3.0% year over year, driven by a 5.6% jump in food away from home.
It may be a while before omelet lovers get some relief. During the last three weeks, wholesale prices have fallen to $3.26 for a dozen eggs from more than $6.80 in early March, per USDA’s report on April 4. The agency said that lower demand among consumers helped to improve the supply, and “consumers are once again seeing fully stocked shelves.”
Kevin Bergquist of Wells Fargo told Yahoo Finance prices will continue to be volatile.
“With Easter around the corner, we expect to see egg prices continue to rise while many will still opt for eggs given the holiday tradition, but after the holiday could see a decline in purchases.”
This news comes as the Department of Justice launched an investigation into America’s largest egg producer, Cal-Maine Foods (CALM). In an 8-K filing, the company said in March it “received a civil investigative demand in connection with a widely publicized investigation by the Antitrust Division of the Department of Justice into the causes behind nationwide increases in egg prices.”
The company said it’s “cooperating with the investigation.”
In late February, United States Agriculture Secretary Brooke Rollins introduced a five-part strategy to combat avian flu outbreaks in a Wall Street Journal op-ed.
