Viewing a single comment thread. View all comments

MaineviaIllinois t1_j52vjt7 wrote

Reply to comment by jaweit in What is going on with egg prices? by [deleted]

Well let’s be real here- 25% inflation- 75% profit taking using bird flu and inflation as cover. The bird flu doesn’t increase the cost of production since they are insured against losses.

5

doobie042 t1_j54opvc wrote

Places do not have insurance for that kind of loss. Nor the loss of income from losing their entire flock and having to start all over from scratch. It costs quite a bit to get millions of chickens and wait the 4-6 months before they start laying.

4

MaineviaIllinois t1_j54wptr wrote

I must have missed the part where eggs were anywhere near this price when we culled about 87% of the birds we have so far during prior outbreaks. Any reason they didn’t escalate nearly to the level?

1

doobie042 t1_j54yahs wrote

Diesel prices are way higher than before. Transportation is a big cost. Feed prices are up from before. 15 years ago you could get a50lbs bag of feed for under $10. 2.5 years ago they were $15. Now they are 22.

3

MaineviaIllinois t1_j55868a wrote

I just checked- chicken feed is still $13 a 40lb bag at Tractor Supply. Last I got was $24 for organic layer pellets which are now $27. In fact you can tell how little prices have actually gone up by checking out your local farm stand. Have they gone up? Sure- have they tripled? Not at all.

1

Dbgb4 t1_j54uu90 wrote

Actually, it will increase the cost of production.

Say you make and sell widgets. The fixed costs of the mortgage, property taxes, electricity, fuel, and the like will not change if you produce 1000 widgets or 500.

Therefore, you have to raise prices to cover the fixed expense you pay per month and therefore the cost per each rises.

The bank and city governments are not cutting the chicken farmers a break because they have 25,000,000 less birds. They expect their bills to be paid each month.

3