As conservative citizens, we understand the value of free markets and the role they play in economic growth. We believe that government intervention should be kept to a minimum and that businesses should be free to set their own prices based on supply and demand. In the case of the current egg shortage, it is important to understand that the market is simply doing what it is designed to do.
Cal-Maine Foods, the largest egg producer in the United States, recently reported that revenue more than doubled and profits surged 718% in the last quarter. Despite the fact that production levels have not declined, the average selling price for a dozen eggs has risen from $1.61 to $3.30 in the same period. This may seem like a significant increase, but it is simply the market in action.
In January of this year, the cost of a dozen eggs exceeded that of a pound of beef for the first time since 1980. Prices have risen 70% in just one year, according to the Bureau of Labor Statistics. Some have accused egg producers of engaging in a collusive scheme to fix prices and extract egregious profits reaching as high as 40%. But we believe that the market is the real culprit here.
The egg shortage is the result of a complex mix of factors, including a bird flu outbreak that has led to the culling of millions of chickens, as well as new regulations that require larger cages for egg-laying hens. This has led to a decrease in the number of chickens available to lay eggs, which in turn has driven up the price of eggs.
Egg producers are simply responding to market forces by raising the price of their product. Higher prices are a signal to consumers that eggs are in short supply and that they should conserve them. This is the beauty of the free market system, which allows prices to adjust based on supply and demand.
Some lawmakers have accused egg producers of price gouging and called for answers about the increased prices paid by families. But the reality is that these prices are simply the result of the market in action. Rather than calling for government intervention, we believe that consumers should embrace the beauty of the free market and respond to higher egg prices by conserving them until supply levels return to normal.
In conclusion, the egg shortage is not the result of collusion or price gouging. It is simply the market in action, responding to a decrease in supply caused by a bird flu outbreak and new regulations. As conservative citizens, we believe that government intervention should be kept to a minimum and that the market should be allowed to function freely. Consumers should embrace the beauty of the free market and respond to higher egg prices by conserving them until the supply levels return to normal.