What’s happening: Farm Action, a farmers’ advocacy group, sent a letter to the Federal Trade Commission (FTC) last week calling for an investigation into the egg industry for suspected price gouging. Sen. Jack Reed (D-R.I.) has also called on the FTC to investigate the situation.
The background: Egg prices are up 138 percent compared to last year, currently averaging at about $4.25 per dozen. While the cost of groceries has risen across the board with inflation, the spike in egg prices over the past months has also been attributed to avian flu that infected millions of chickens and turkeys last year.
The allegations: In its letter to the FTC, Farm Action accused dominant egg producers of price gouging. (Just over the last quarter, Cal-Maine Foods has seen a 600 percent increase in its gross profit.) Farm Action claims the avian flu had a “minimal” impact on the egg industry and that there is no justification for a “three-fold” increase in egg prices.
Why it matters: Rising egg prices have impacted Americans across the country, including local restaurants and bakeries, which have already taken a beating from other inflated consumer goods.