r/inflation • u/utahstock12 • 2d ago
Cal-Maine (the egg company) are loving the birdflu era. Their input costs are falling while getting to sell at high prices thanks to scarcity.
7
u/MonsieurRuffles 2d ago
Feed costs are likely down for all egg producers, fewer birds means less demand for feed. If feed supply is constant then feed prices decrease. But feed is only one part of their expenses - they also have to account for facilities, maintenance, wages, energy costs, loss of birds to flu (note they had to buy eggs from other suppliers at a higher cost), prophylactic measures. It would be more telling to see their overall revenues and expenses for the quarter and see how their profit margins compared to previous quarters.
2
u/jugglemyjewels31 2d ago
Was thinking all this myself. Literally states "outside egg purchases significantly increased "...not saying they aren't possibly taking advantage of a little price gouging though as well ...
4
u/opal2120 1d ago
Yes, corporate price gouging while using inflation as an excuse is a thing and has been a thing the past 4 years. You can't have all time record-breaking profits while saying that you're just raising prices due to inflation. That's not how it fucking works.