Egg company sees 718% profit surge as prices soar

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Bird flu wreaked havoc on the price of eggs in 2022, and it looks like the pain will continue well into 2023. AP File Photo/Virginia Mayo

Egg company sees 718% profit surge as prices soar

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The largest egg producer in the United States, Cal-Maine Foods, reported more than doubled revenue and a 718% surge in profits last quarter as egg prices soar.

Reuters reported that the company controls 20% of the U.S. egg market, according to CNN. Cal-Maine’s average price for a dozen eggs in the first quarter of 2022 was $1.61. A year later, that price jumped to $3.30 in the quarter ending on Feb. 25.

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The company also sold 1% more eggs than it did a year ago, so its revenue more than doubled to $997.5 million.

A look at the company’s profits also yields a daunting figure. The company reported making $39.5 million in profit a year ago. That number jumped to $323.2 million in the quarter ending in February, and the company noted a 718% jump in profits, according to CNN.

A lingering bird flu has hampered much of the market’s egg-producing ability, but Cal-Maine said it has not had a single case.

Politicians have accused egg producers of taking advantage when considering egg prices.

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“American families working to put food on the table deserve to know whether the increased prices they are paying for eggs represent a legitimate response to reduced supply or out-of-control corporate greed,” Sen. Elizabeth Warren (D-MA) and Rep. Katie Porter (D-CA) said in a letter to Cal-Maine, according to CNN.

Egg prices have begun a retreat, but they are still up 55% from a year ago, per the U.S.’s recent inflation reading, according to CNN.

© 2023 Washington Examiner

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