First, let’s understand what is happening with egg prices in the United States.
According to the Consumer Price Index, a measure of inflation, egg prices rose 60% in 2022, the largest percentage increase among any product or service in the country.
The main justification for the higher prices is the historic outbreak of avian influenza that killed tens of millions of birds and consequently decreased supply.
However, Farm Action, a farmer-led advocacy group, claims that the “real culprit” is a “collusion” among major egg producers to fix prices, the group said in a letter to the Federal Trade Commission (FTC).
Doing so has helped producers “extract exorbitant profits of up to 40%”, according to the letter issued last Thursday, which calls on the FTC to investigate potential profiteering and “dirty tricks”.
The Federal Trade Commission has not commented on the case.
Economy or Profit?
The U.S. experienced the deadliest avian influenza outbreak in history in 2022.
The “highly pathogenic avian influenza” killed about 58 million birds in 47 states, according to the U.S. Department of Agriculture. The previous record was set in 2015 when 50.5 million birds died.
The disease, which is contagious and lethal, affects various types of birds, including laying hens.
In December, the average number of “laying” hens fell 5% compared to the previous year, totaling 374 million birds, according to USDA data published on Friday (20). Overall table egg production fell 6.6% during the same period, to 652.2 million, the data showed.
These industry numbers do not seem to match a two or three-digit percentage increase in egg prices last year, claims Farm Action.
For example, profits for Cal-Maine Foods – the largest egg producer in the country and an industry indicator – “increased in sync with the rise in egg prices each quarter of the year,” said Farm Action. The company reported a tenfold increase in profits during the 26-week period ending November 26, according to Farm Action.
How about buying cheaper eggs in Mexico?
While the situation remains unclear and egg prices stay high, people are trying to transport the product from Mexico to the United States, border authorities reported.
The average cost of a dozen eggs in the U.S. reached $4.25 in December – and in some states, 12 eggs are sold for over $7.
But in Juarez, Mexico, for example, consumers can buy a box of 30 eggs for the incredible comparative price of $3.40. This kind of bargain is leading some U.S. citizens to cross the border to buy eggs in Mexico.
However, bringing raw eggs from Mexico to the U.S. is illegal due to the risk of avian influenza and Newcastle disease, a contagious virus that affects birds, according to the U.S. Customs and Border Protection (CBP).
According to the CBP, between October 1 and December 31, 2022, there was a 108% increase in the number of eggs and poultry products seized at U.S. entry ports.
Most of the time, travelers bringing eggs declared the product when crossing the border. “When this happens, the person can abandon the product without consequences,” Customs informs. “Agricultural specialists will collect and then destroy the eggs (and other prohibited food/agricultural products).”
Some travelers, however, did not declare their eggs, and the products were discovered during inspection. In these cases, the eggs were seized, and the travelers received a $300 fine.
The rule applies to other products, especially raw ones. So, if you like to bring your suitcase full of food when returning from Brazil, it’s best to declare it to avoid possible fines if they are considered prohibited. If they are declared and deemed prohibited, they can be abandoned without consequences. If they are not declared and later discovered during an inspection, the traveler may be subject to penalties.