'Act of God': The price of eggs is soaring due to an 'unprecedented' crisis, tra...
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The price of eggs is soaring due to an 'unprecedented' crisis, trade strategist says — here's 2 surging food stocks to help buck the slumping market
While it’s no secret that inflation has been running hot, the drastic increase in egg prices recently still took many people by surprise.
Data from the Bureau of Labor Statistics shows that the average price of a dozen large Grade A eggs in a U.S. city reached $4.250 in December 2022, more than doubling the $1.788 consumers were paying a year earlier.
Bird flu could be a main driver behind the price increase. According to the Centers for Disease Control and Prevention, a highly pathogenic avian influenza first detected in January 2022 has resulted in the death of nearly 58 million chickens and turkeys.
Brian Moscogiuri, a global trade strategist at egg supplier Eggs Unlimited, called the situation “unprecedented.”
“It’s a supply disruption, ‘act of God’ type stuff,” Moscogiuri said.
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Others see a multitude of factors behind the rising cost of eggs.
“When you're looking at fuel costs go up, and you're looking at feed costs go up as much as 60%, labor costs, packaging costs — all of that ... those are much much bigger factors than bird flu for sure,” said Emily Metz, president and CEO of trade group American Egg Board.
Food prices in general have been trending up. While that’s putting a dent in household budgets, it could present an opportunity for savvy investors.
In fact, some food stocks are already helping investors buck the downtrend in the market. Here’s a look at two of them.
Cal-Maine Foods
Cal-Maine Foods (NASDAQ:CALM) is the largest producer and distributor of shell eggs in the U.S. The company has been around since 1957 and sells most of its shell eggs in the southwestern, southeastern, mid-western and mid-Atlantic regions of the U.S.
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