March 31, 2023

Cal-Maine Foods announces profits up 718% due to high egg prices

Cal-Maine Foods, the biggest US egg producer, announced that its revenue doubled and profits increased 718% in the last quarter due to rising egg prices in the country, CNN reported.

The company said its average selling price for a dozen eggs in the quarter ending February 25 was US$3.30, more than double the average of US$1.61 a year earlier. Despite the higher prices, the total number of eggs sold increased by 1%, resulting in a 109% increase in revenue to US$997.5 million.

The company's net income increased to US$323.2 million from US$39.5 million the previous year.

Cal-Maine controls about 20% of the US egg market.

The spread of bird flu in the US has forced farmers to cull millions of egg-laying hens, reducing the country's egg supply and driving up prices. But Cal-Maine said in its earnings report that there have been no positive bird flu tests at any of its owned or contracted production facilities.

Some politicians have criticised egg producers' pricing decisions, accusing them of profiteering and price gouging.

Egg prices began to fall slightly in the most recent government inflation reading for February, but are still up more than 55% year-on-year.

-      CNN