With egg prices more than doubling in the past year, calls are coming for an investigation into possible price gouging. The spike in egg prices has been attributed to the millions of chickens that were slaughtered to limit the spread of bird flu.
But trade groups say egg prices are largely determined by commodity markets, and experts say the bird flu outbreak — combined with the skyrocketing cost of fuel, feed, labor and packaging and continued strong demand for eggs — is the real culprit for the price increases.
Purdue University agricultural economist Jayson Lusk said “in my view, the basic economics of the situation well explain the price rise.” He said small reductions in egg supply can result in large price increases because consumer demand for eggs doesn’t waiver much.
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