What is Driving the Price of Eggs Up?

4 to 5% is not enough impact to nearly double the egg prices.

I subscribe to 2 different poultry industry trade journals that come in my mailbox every month. The rising prices are caused by rising feed prices. The industry has reduced placement several percentage points due to consumers buying slightly less poultry and eggs because the prices have gone up so much.

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The price I sell eggs for went up with the feed prices. I now sell them for $3.50/dozen retail & $2.75/dozen wholesale. I buy feed by the ton and it still went up $2/bag.

I have 300+ chickens so it does make a difference Even though they all free range I need to make sure they get enough to eat.

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Dana
Chicama Run

I was buying supermarket grade AA large hen eggs for 71¢ per dozen at Dillons (Kroger) grocery chain and about the same at Aldi's. That is until the price spiked in January after the ice, rain, snow, blizzard, zero temperatures and below freezing 24 hours a day for weeks. No abatement of the price yet.

It's mostly politics that causes the prices of feed to go up so the price of the end product goes up. Someone in the chain is making a lot of money, the only sure bet is that it's not the little guys.

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A client called his broker inquiring about egg futures and is quoted a price of 25 cents per contract. Having a hunch about the egg market he buys 100 contracts. A week later he calls his broker to get a quote. Pleased to learn that the price of eggs has risen to 35 cents he decides to buy another 1,000 contracts. A few days later, eager to check on the progress of his investment, he is amazed to learn that the price has now risen to 50 cents per contract, twice the price he paid for his original 100 contracts. Sensing a trend, he steps it up, this time buying 100,000 contracts. The next day, ecstatic to learn that egg prices have now risen to 65 cents, he gets even more aggressive, buying 1,000,000 contracts. Sure enough, the following day the price of eggs rises to 95 cents, prompting him to order an additional million contracts. The day after that, as rising prices further validate his intuition, he buys yet another million contracts, this time paying $1.25.

The next day, with egg contracts trading at $1.75, he senses that the market has risen too far too fast, and places an order to sell 2,000,000 contracts. After a pregnant pause his broker replies, “Sell to whom, you’re the egg man”.

You are right in so far as faulty politics has fostered big agi business and special interests.

Big agri business is dependent upon Petro Farming and all that cheap corn in the Corn Belt cannot be raised without petroleum.

Things are only going to get worse as India, China and others compete with the US for oil.


veme

I was just thinking 4-5 girls would not irk the neighbors that much. You don't need a rooster. There is a whole urban gorilla hen movement now. I doubt you will save money but it's so nice having hens. I really miss my girls.

Mike, the Buckeye case is now being taught in law schools as an example on how not to protect assets.

And all the raising prices associated with our very ability to live properly? Less oil, more demand, higher everything associated with oil, corn, gas and all other fuels, is that what this whole Peak Oil deal is?

Alex

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