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BG40 t1_jeetr1d wrote

Reply to comment by OneWhoSearches in Fed inflation gauge February 2023: Core PCE up 0.3%, less than expected by bambin0

That’s price gouging in effect. Eggs manufacturers reporting 700% increases in profits isn’t inflation.

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Tonaia t1_jef0mi8 wrote

That report specifically cited that the manufacturer was unaffected by the bird flu and didn't have to cull the flock.

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key-wavelength t1_jef9tu6 wrote

The egg industry is a cartel. They have been busted for this in the past.

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Tonaia t1_jefh8am wrote

I don't disagree. The context of that particular story does matter though. Cal-Maine Foods could have taken a smaller profit, but they didn't. They took full advantage and exploited the supply shock, but they could only do that because they didn't lose any production themselves.

Their unwillingness to step back from profit kept the egg prices high.

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Fineous4 t1_jefoo75 wrote

If you made one cent last year in profit, but made eight cents this year it is a 700% increase in profit. Percent increases in profit don’t matter because they tell you absolutely nothing. Increases in revenue tell the story.

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