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gofatwya t1_jcxrz9j wrote

"Egg prices have surged, fueled by short supply caused by the deadly avian flu, high production costs and egg producers increasing their own profits "

Dicks.

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SilasX t1_jcy6i66 wrote

I don't like appealing to "want to increase profits" as an explanation for price increases. They are always wanting to increase their profits, so it doesn't help explain any particular price surge.

Generally what stops arbitrary price increases is the fact that it draws competitors into the market. So if you see them succeeding in increasing profits, it's because said competitors can't or won't, and if they can't, then that's rightly called a legit supply shock.

Now, if there were actual cartel schemes to hold supply down (the "won't" branch), that would be a valid explanation for malevolent price increases, but even then, that mechanism should be what you're appealing to, not "lol greed".

Edit: Economically ignorant people in this thread, don't bother.

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Central_Control t1_jcy6lr8 wrote

I got a doz large eggs for $2.50.

I don't see what the problem is. Yeah, prices raise over time. Especially when driven by greed and disease.

What else is new? Big fucking deal. The reason we can't afford eggs isn't because of a small price raise to eggs. It's because rich people aren't paying their fair share in society, and it ends up taking all the gained wealth out of the system.

The orange asshole's tax cuts for the rich have kicked in, and you're feeling it. Now you're going to feel it for the rest of your life. Enjoy.

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RSomnambulist t1_jcy84l5 wrote

This hasn't been true since the pandemic. The supply crunches have been used to obfuscate margin increases as a test to see what the market will allow before they react. We've proven that we'll keep buying and throw nearly all the blame at inflation and supply chain regardless of it often being the smallest part of a particular items inflation. This is true of most food stuffs increases to prices.

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RobTheThrone t1_jcym1mp wrote

Doesn’t this mean they won’t qualify for food stamps payments from customers?

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SilasX t1_jcyrrta wrote

What changed in terms of cartelization. "The pandemic is what changed" is consistent with the (more probable) supply shock explanation. Again, why not do it in e.g. 2009 when they could have "obfuscated" it with swine flu?

Again, they're always greedy. Why isn't competition restraining it this time?

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monkeyfrog987 t1_jcyywgr wrote

Egg costs jumped 38% for producers annually in February and 55% for shoppers...

This disconnect is what's really driving inflation. Sure costs went up but the profit margin is untethered from reality at this point.

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knewbees t1_jcz6zm2 wrote

I bought just 6 eggs at the grocery store on my last trip. The only other choice available was in a carton of 18 for over$8.00 . I could have taken two at 1.75 for six but really only needed the smaller size. It is a matter of marketing and fear.

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420everytime t1_jczcec2 wrote

Supply and demand means that when when supply goes down you need to lower demand some way to stay in stock.

Most places raise prices to stay in stock. My local Lidl has eggs for like $2.70, but they limit 4 dozen per customer to lower demand

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caffelightning t1_jczjkyx wrote

>Your friendly reminder that publicly traded companies are legally required to pursue profits at the expense of consumer experiences

*Citation Needed

I'll save you the time: no they are not.

I'll go a step further and provide a citation from a supreme court ruling:
https://caselaw.findlaw.com/us-supreme-court/13-354.html

BURWELL, SECRETARY OF HEALTH AND HUMAN SERVICES, ET AL. v. HOBBY LOBBY STORES, INC., ET AL.(2014)
No. 13-354

>Modern corporate law does not require for-profit corporations to pursue profit at the expense of everything else, and many do not.

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Jedzoil t1_jczxuhu wrote

Regulators won’t let home farms sell eggs anymore. That’s not helping.

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0nefatgrub t1_jd01us5 wrote

Just bought two dozen eggs from Costco in the San Francisco Bay Area only $3 a dozen. Supply not short just greed.

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UselessRube t1_jd0crwb wrote

Weird. The price of eggs has dropped like 50% in the last month by me. They were $7 for 18 and now they’re down to $3.65 for 18.

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erichw23 t1_jd0izxl wrote

Egg prices have plummeted already, this is weird fear mongering news

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monkeyfrog987 t1_jd0jp4e wrote

From another part of the article:

Egg prices have surged, fueled by short supply caused by the deadly avian flu, high production costs and egg producers increasing their own profits.

Egg producers have increased their margin of profit higher than previously done and in the middle of supply chain issues and the avian flu.

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monkeyfrog987 t1_jd0ks65 wrote

I mean, sure but it's a fraction and almost nominal additional cost, otherwise it would be noted as a standalone addition.

What we do know is across the board, pork products, eggs, gas and oil etc. Etc. Corporations have increased their profit margins wildly untethered to the cost of goods.

Almost every recent investor call has shown this. All of them are bragging about how they've made record profits far and away above anything they've done in the past.

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Hsensei t1_jd19hng wrote

This is bad for the poor, many large urban areas do not have an actual grocery store. Dollar tree and dollar general are the only places that sell traditional groceries.

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shruggedbeware t1_jd254da wrote

People shouldn't be buying groceries from dollar stores anyway, it's not practical. Stores like that mark stuff way up taking advantage of lower financial literacy or transit access in poorer neighborhoods.

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Inconceivable-2020 t1_jd4p3rd wrote

Except that there really have not been that many reported Avian Flu culls. It's pretty much all price gouging. In fact in my town we have two regional grocery store chains, one has been lowering prices steadily and the other refuses. The same Dozen Jumbo Eggs are $4.49 at one and $7.49 at the other. A year ago they were $2.99

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CarbonaradeBurke t1_jdgfahp wrote

Egg prices are crashing back down again so this is Dollar Tree pulling the “oh how poor us! Evil Brandon has made the inflationerinos happen111!!!”

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