Record profits for largest US egg producer

[Taurus]

Basically their rational for gouging is because they can. No better than big oil companies.

A spike in egg prices has squeezed customers. But even with rising costs of its own, the leading US egg supplier has found that it can make even more money out of every egg.

The egg shortage has enabled record quarterly profits and sales at Cal-Maine Foods (CALM), the largest producer and distributor of eggs in the United States. The company produces brands such as Farmhouse Eggs, Sunups, Sunny Meadow, Egg-Land’s Best and Land O’ Lakes eggs.

Cal-Maine’s profit increased 65% to $198 million during the three months ended Nov. 26 from a year ago.


https://www.cnn.com/2023/01/13/busin...ods/index.html

[Vandelay Industries]

Down with Big Egg!

[Bill]

It's just like choking off oil drilling and pipelines. Diminished supply leads to higher prices and windfall profits for companies. In the case of egg producers, much of the cause is purportedly bird flu. In the case of gas and diesel prices, much of the cause is Brandon policy, er, flu.

Of course, skyrocketing chicken feed prices, energy prices, and prices for every other input needed by egg producers also contributes to the inflationary spiral of egg prices. The Brandon policies are largely at fault for those.

[Bill]

Originally Posted by Vandelay Industries

Down with Big Egg!

Surely you must be yolking!

[MadInNc]

Why not, they saw everybody else doing it under the 8% inflation rate....

[Big bob]

Going to need a bigger basket.

[Vandelay Industries]

Originally Posted by bill_daniels

Surely you must be yolking!

A lot of people think I'm hard boiled, but I always try to look at the sunny side up here.

[sublime1996525]

Law of supply

[Vandelay Industries]

Where is it written that market forces can't drive profits when prices increase?

[Bill]

I rated this thread as eggcellent.




Edit: Wait. Hol' up. The thread rating button no longer works????? What manner of sorcery is this? Has one bad apple ruined the whole thing for the rest of us?

[VITE1]

Yet no one mentions that they were just about break even in 2019 and 2020.

2019 .38 EPS
2020 .04 EPS
2021 2.21 EPS
2022 5.66 EPS

[MadInNc]

Originally Posted by bill_daniels

I rated this thread as eggcellent.

Edit: Wait. Hol' up. The thread rating button no longer works????? What manner of sorcery is this? Has one bad apple ruined the whole thing for the rest of us?

Worked for me

[Taurus]

Originally Posted by bill_daniels

It's just like choking off oil drilling and pipelines. Diminished supply leads to higher prices and windfall profits for companies. In the case of egg producers, much of the cause is purportedly bird flu. In the case of gas and diesel prices, much of the cause is Brandon policy, er, flu.

Of course, skyrocketing chicken feed prices, energy prices, and prices for every other input needed by egg producers also contributes to the inflationary spiral of egg prices. The Brandon policies are largely at fault for those.

Let's assume they made 30% at their old cost of say a selling price of $1.00 per dozen that would be $.30 per dozen profit also assuming their costs were all baked into the selling price. If they make the same 30% on a new cost of $5.00 per dozen that's $1.50 that they would make by just passing along their increased costs. You would have to believe their expenses were up by 3X, not sure I go along with that.

[Aerovette]

People need to boycott eggs and watch them scramble for a solution.

[Dan47]

Originally Posted by Taurus

Let's assume they made 30% at their old cost of say a selling price of $1.00 per dozen that would be $.30 per dozen profit also assuming their costs were all baked into the selling price. If they make the same 30% on a new cost of $5.00 per dozen that's $1.50 that they would make by just passing along their increased costs. You would have to believe their expenses were up by 3X, not sure I go along with that.

Opportunity for other people to market eggs. We’re getting ours from a local farmer for $3.00 a dozen.

[VITE1]

Originally Posted by Taurus

Let's assume they made 30% at their old cost of say a selling price of $1.00 per dozen that would be $.30 per dozen profit also assuming their costs were all baked into the selling price. If they make the same 30% on a new cost of $5.00 per dozen that's $1.50 that they would make by just passing along their increased costs. You would have to believe their expenses were up by 3X, not sure I go along with that.

Why does the cost of the product set the value in the market? When they were breaking even or losing money did anyone say" Let's demand they make a fair profit" and raised the prices of the product?


The law of supply and demand works. Meddling imn the free market only produces inefficiencies and failure.

Demand is up, production is down.

https://unitedegg.com/facts-stats/

[NEED-A-VETTE]

[Anjdog2003]

Quit buying eggs and watch the price drop.

[Taurus]

Originally Posted by VITE1

Why does the cost of the product set the value in the market? When they were breaking even or losing money did anyone say" Let's demand they make a fair profit" and raised the prices of the product?


The law of supply and demand works. Meddling imn the free market only produces inefficiencies and failure.

Demand is up, production is down.

https://unitedegg.com/facts-stats/

Absolutely agree.

[Bruze]

Originally Posted by Taurus

Basically their rational for gouging is because they can. No better than big oil companies.

A spike in egg prices has squeezed customers. But even with rising costs of its own, the leading US egg supplier has found that it can make even more money out of every egg.

The egg shortage has enabled record quarterly profits and sales at Cal-Maine Foods (CALM), the largest producer and distributor of eggs in the United States. The company produces brands such as Farmhouse Eggs, Sunups, Sunny Meadow, Egg-Land’s Best and Land O’ Lakes eggs.

Cal-Maine’s profit increased 65% to $198 million during the three months ended Nov. 26 from a year ago.


https://www.cnn.com/2023/01/13/busin...ods/index.html

So you libs should take every penny you have and invest in their stock. What's not to like? BTW, a corporation's primary responsibility is to their shareholders.

But don't come crying back here when the price of eggs crashes at some point in the future -- as oil stocks do. But for some reason you ignore the crashes.

Your options are to let the free market set the price of eggs, oil, or whatever your latest ill-advised, skid-mark complaint is, or ask for some level of government interference in the market.

But government interference -- and this is a guarantee -- will distort the normal market price signals of supply and demand, disrupting the market, and cause shortages. Every time.

This is the entire argument against socialism: That pointy-headed intellectuals in government can somehow know the correct price for something that won't disrupt supply and demand.

"Price is the balance point between supply and demand." -- author unknown.