U.S. lawmakers find solutions from egg firms on file-substantial costs

Feb 16 (Reuters) – Two U.S. lawmakers have sent letters to the country’s leading egg corporations in search of answers for why egg prices have ballooned to history highs in recent months, in accordance to copies of the letters witnessed by Reuters.

The price tag of eggs was up 150% in January from a 12 months prior to $4.80 a dozen, in accordance to the Bureau of Labor Statistics, boosting issues among farmers and antitrust advocates who have warned about the electric power of prime agriculture corporations to set charges.

“American households functioning to set meals on the table deserve to know whether the greater rates they are paying for eggs depict a genuine response to decreased provide or out-of-manage company greed,” wrote Senator Elizabeth Warren of Massachusetts and Representative Katie Porter of California.

The letters have been sent Thursday early morning to the CEOs of Cal-Maine Foods (Tranquil.O), Hillandale Farms, Rose Acre Farms, Daybreak Meals, and Versova Administration.

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The U.S. Department of Agriculture has pointed to report instances of avian flu, which has killed much more than 58 million chickens and turkeys due to the fact the starting of 2022, as a explanation for high price ranges. But a farm team not too long ago asked federal regulators to investigate no matter if egg firms were being price tag gouging.

The lawmakers said the spike in selling prices raises fears about anti-aggressive carry out and requested information on govt payment, profit margins, avian flu impacts, and regardless of whether organizations have communicated with one a further about egg rates.

Only Cal-Maine Foods, which controls about 20% of the U.S. egg current market, is public. The business documented gross profits up 600% in a late-December filing with the Securities and Trade Fee.

Cal-Maine, Daybreak, Hillandale, Rose Acre, and Versova did not immediately react to requests for comment.

The lawmakers requested responses by March 1.

Reporting by Leah Douglas
Modifying by Nick Zieminski

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