Most likely is that they just saw an opportunity and thought 'why not' as they jacked their prices.
to be clearer...revenue goes up from volume and price.
Volume was up 10%, and if prices were stable that would result in a similar sales increase...so prices clearly benefitted the producer.
If there costs had gone up in a similar fashion, the margin would have been more stable.
But...wholesale egg prices are usually contractual based on market prices for the commodity, not necessarily the price the producer itself sets for its product. Different than say an apparel manufacturer that mostly sets its own price (although commodities/markets also have an impact in terms of fabric costs).
I imagine though producers could have built in some type of discount for its retail customers. (i have no idea what type of margin impact the retailers got, up or down).
all due respect, when your profit margin jumps from 23% to 45% on a 10% volume increase, that's because you either raised prices or completely eliminated any historical promotions.
probably a combination
Most likely is that they just saw an opportunity and thought 'why not' as they jacked their prices.
There are non-profiteering ways this can happen. Maybe they had little impact on production and they are traditionally higher priced and less efficient. The lack of competition would take up the slack and improve their efficiency, then PROFIT!
Or they just jacked their prices because they could and sold every egg they could squeeze out of he hens.
all due respect, when your profit margin jumps from 23% to 45% on a 10% volume increase, that's because you either raised prices or completely eliminated any historical promotions.
Que?
For its 3Q ended 3/1/25, the largest egg producer saw volumes jump over 10%, sales more than double and operating profits quadrupled...all while the headline was egg prices are higher because of a shortage. Now I could see perhaps they werent as impacted and sales benefitted as they picked up the slack. But....at the same time their profit margin doubled to 45%.
There are non-profiteering ways this can happen. Maybe they had little impact on production and they are traditionally higher priced and less efficient. The lack of competition would take up the slack and improve their efficiency, then PROFIT!
Or they just jacked their prices because they could and sold every egg they could squeeze out of he hens.
It's springtime, so my hens are super productive. Also my local Costco (which normally sells eggs by the pallet load in flats) has none. Zero. Zip. Not any.
Statistically these are known as anecdotes.
Que?
For its 3Q ended 3/1/25, the largest egg producer saw volumes jump over 10%, sales more than double and operating profits quadrupled...all while the headline was egg prices are higher because of a shortage. Now I could see perhaps they werent as impacted and sales benefitted as they picked up the slack. But....at the same time their profit margin doubled to 45%.
It's springtime, so my hens are super productive. Also my local Costco (which normally sells eggs by the pallet load in flats) has none. Zero. Zip. Not any.
Statistically these are known as anecdotes.
Statistically, what was described is profiteering.. It's anecdotal if based on personal experience or limited data.
The nationâs largest egg producer, Cal-Maine Foods, reported that its profits for the first quarter of 2025 soared to $508 millionâmore than triple the $146 million it earned in the same period last year.
That's not an anecdote, it's public company financial disclosure.
A not so surprising fact about the so-called egg shortage, Cal Maine, the largest egg producer, not only saw its volume grow, but also its operating profits, up 4x for the quarter and nearly 7x YTD.
It's springtime, so my hens are super productive. Also my local Costco (which normally sells eggs by the pallet load in flats) has none. Zero. Zip. Not any.
A not so surprising fact about the so-called egg shortage, Cal Maine, the largest egg producer, not only saw its volume grow, but also its operating profits, up 4x for the quarter and nearly 7x YTD.
The Trump administration has raised taxes on Chinese imports to 125% as the trade war continues to heat up. The key facts and figures behind the presidentâs tariffs.
$3.2 billion: Market gains for bug-out bags
29: Turnips to be substituted into average Americanâs weekly diet
1 in 3: Americans currently screaming âSELL! SELL!â into cell phone
9: Quantity of eggs 401(k) worth now
1, 2, 3, 4: Numbers chanted by Trump before saying, âI declare a trade war!â
5: Days until you have to start making own soap
80%: Increase in Oliver Twist adaptations set in present day
48: Hours Youngstown, OH has been given to get a thriving banana industry up and running
Rentiers vs. manufacturers A new whoâs who of the global elites They dominate the countries that account for more than half of global GDP â but who are they? *
I'm sure our new AG, who recently said âI wish we could have him for 20 years as our president, but I think heâs gonna be finished probably after this term.â... is gonna look into that immediately.
Now that we know airports are designed as swastika and the Nordic countries don't count when discussing socialism... Any thoughts you'd like to share of the financial destruction of our country by a guy who's delivered more bankruptcies than Elon's had wives?
I know you've got a lot to remember, so here are some of the "promises made" that you so happily like to share about other topics....
âI will end inflation and make America affordable again on Day One.â
âWe will deliver the best jobs, the biggest paychecks, and the brightest economic future the world has ever seen.â
âMy tax cuts will put more money in your pocket immediatelyâno more federal taxes on tips, overtime pay, or Social Security benefits.â
âUnder my leadership, we will see an economic boom like never before, starting right away.â
Prices are going up on EVERYTHING soon. If you couldn't afford Biden...you're about to become homeless under Trump.
Looking forward to your rebuttal... but not expecting one. You've got bigger fish to fry, like defeating the Squad before they ruin America.
Any reply you're likely to get will be some version of whataboutism... "but Biden! But, what about Obama?" "But what about the Democrats!?" And the avoidance of anything resembling an actual reply to your inquiries. He's a broken record.
(2) To effect, alone or with one or more other persons, a series
of transactions in any security registered on a national securities
exchange or in connection with any security-based swap agreement
(as defined in section 206B of the Gramm-Leach-Bliley Act) with
respect to such security creating actual or apparent active trading
in such security, or raising or depressing the price of such security,
for the purpose of inducing the purchase or sale of such security
by others.
Yesterday - 9:37 am on Truth Social - THIS IS A GREAT TIME TO BUY!!! DJT
Yesterday - 1:30 pm:
Grifter gonna grift.
This is a crime:
SEC Act, section 9, A(2)
(2) To effect, alone or with one or more other persons, a series
of transactions in any security registered on a national securities
exchange or in connection with any security-based swap agreement
(as defined in section 206B of the Gramm-Leach-Bliley Act) with
respect to such security creating actual or apparent active trading
in such security, or raising or depressing the price of such security,
for the purpose of inducing the purchase or sale of such security
by others.
Part of my thinks he's going to cancel everything....and tip that information to his friends and family plan members a day or two before the swing back. It's obviously traceable... but who cares when you can pardon anyone you'd like, and punish those who get in the way.
Law and order. They'll show those DEI and BLM warriors how real weaponization of the justice system works.
^ 3 days ago ^
Yesterday - 9:37 am on Truth Social - THIS IS A GREAT TIME TO BUY!!! DJT
U.S. President Donald Trump has long been of two minds about the dollar. He has said he wants it weaker to make American products cheaper in global markets, but he has also said he wants it strong so it remains the worldâs dominant reserve currency.
Those two objectives never made sense together. And now, as his tariff war threatens the U.S. economy, weâre seeing reality bite. Trump is getting the weakness he wants. The dollar has fallen 5 percent against other major currencies since his inauguration in January. But the strength he promised is nowhere to be seen.
Last year, one of Trumpâs key advisors, Stephen Miran, imagined a so-called Mar-a-Lago Accord in which the United States would essentially require its trading partners to help bring down the dollarâs value. That would have been, the theory goes, engineering a devaluation from a position of strength.
Instead, the dollar is falling because of perceptions of American weakness. Investors are worried that in the short run, the trade war will cause a recession in the United States, and that in the long run, loss of confidence in the United States will jeopardize the dollarâs role at the center of global commerce. âThe blowback of U.S. tariffs onto the U.S. domestic economy leaves the dollar naked,â Chris Turner, INGâs global head of markets, wrote in a client note.
Trump is right that a strong dollar is a mixed blessing. By making imports cheaper and exports more expensive, it hurts workers in businesses that compete in global markets. Trump has vowed to reverse what he calls the hollowing out of the American economy, and bringing down the dollar is, along with tariffs, a key part of his platform. (...)
Then thereâs the perennial question of whether Americans or foreigners will bear the cost of the Trump tariffs. On paper, the tariffs are paid at the point of importation, but that doesnât answer the question of who ultimately bears their cost. Bessent thinks he knows. Echoing his boss, he told CBS News in early March that China âwill eat any tariffs that go on.â
But that all depends on which side has market power, economists say. If a Chinese producer feels it must swallow the cost of the tariff to retain its American customers, then it will bear the full cost of the tariff. Thatâs Bessentâs scenario. On the other hand, if the Chinese producer can get away with pushing the cost of tariffs onto its customers, then the final price will go up by the amount of the tariff, and Americans will bear their full cost.
The reality is most likely somewhere between those extremes. China and other exporters didnât âeatâ the tariffs the last time Trump was president. Americans did. âU.S. tariffs continue to be almost entirely borne by U.S. firms and consumers,â the economists Mary Amiti, Stephen J. Redding, and David E. Weinstein found in a 2020 article about the tariffs imposed in 2018 and 2019.
Many mainstream economists agree that tariffs can be legitimate tools in certain circumstances. For example, the World Trade Organization allows countries to levy tariffs to protect themselves from unfair practices by trading partners, such as subsidies. Some economists also defend tariffs that protect âinfant industriesââones that need to be sheltered from competition as they get going. (...)