The biggest factor pushing up egg prices is a wave of avian flu, which began in early 2022 and led to the culling of millions of egg-laying hens. With demand remaining steady, the reduced supply has caused prices to rise.
While prices are expected to ease from late 2024 highs, they will likely stay above pre-outbreak levels through 2025.
Or indefinitely. Once people get used to paying a higher price for eggs, what’s to stop the stores from keeping the prices relatively high, even if the wholesale price goes down? If a store can increase their profit margins on eggs, why wouldn’t they? Especially if the store is a large corporation, always looking to maximize profit and return for shareholders.
Some people might say, “competition will bring the price down. Once one store lowers their price to gain a competitive edge, other stores will have to follow or risk losing customers.” To this I say: who the hell comparison shops for eggs? Look, I’m sure some people do, but, if most people are like me, they’re not going to multiple stores to see who has the lowest price for a dozen eggs. I go to one store, my favorite store, and I just get the same eggs I’m used to getting. Even if I did want to comparison shop, not all stores are going to sell my preferred eggs (I know a lot of people will say, eggs are eggs, but I like cage free eggs even though it’s probably bullshit I like to think my eggs aren’t coming from chickens who are stuffed into those little wire cages all day), so it would be hard to do an apples to apples comparison.
Plus, as more and more stores become consolidated into fewer and fewer major retailer chains, even the theoretical idea of price regulation through competition goes out the window.
Supply and demand, folks. Supply and demand. Demand high, supply low? Price goes up. Supply high, demand low, prices goes down.
Or indefinitely. Once people get used to paying a higher price for eggs, what’s to stop the stores from keeping the prices relatively high, even if the wholesale price goes down? If a store can increase their profit margins on eggs, why wouldn’t they? Especially if the store is a large corporation, always looking to maximize profit and return for shareholders.
Some people might say, “competition will bring the price down. Once one store lowers their price to gain a competitive edge, other stores will have to follow or risk losing customers.” To this I say: who the hell comparison shops for eggs? Look, I’m sure some people do, but, if most people are like me, they’re not going to multiple stores to see who has the lowest price for a dozen eggs. I go to one store, my favorite store, and I just get the same eggs I’m used to getting. Even if I did want to comparison shop, not all stores are going to sell my preferred eggs (I know a lot of people will say, eggs are eggs, but I like cage free eggs even though it’s probably bullshit I like to think my eggs aren’t coming from chickens who are stuffed into those little wire cages all day), so it would be hard to do an apples to apples comparison.
Plus, as more and more stores become consolidated into fewer and fewer major retailer chains, even the theoretical idea of price regulation through competition goes out the window.
This is what we get when we essentially live under monopoly control or pseudo-monopolies created via collusion.