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New York Times
30-05-2025
- Business
- New York Times
Key decisions await Timberwolves' new owners for team with growing expectations
When this long, difficult, rewarding and validating Minnesota Timberwolves season came to a crashing halt Wednesday in Oklahoma City, a sullen group of players and coaches filed into the locker room to come to grips with it all. As the team gathered, Marc Lore and Alex Rodriguez entered the room to wish the players well and offer encouragement in the face of defeat, a visceral reminder of the sea change that is in the process of happening with the franchise. Glen Taylor watched the final game of the season, and of his three-decade run as owner of the Timberwolves, from his home. Lore and Rodriguez, who will soon officially take full control of the team, were on site and making their presence felt. 'This is the beginning of a new chapter of sustained success,' read a portion of a statement they posted on social media. We're so proud of the @Timberwolves players, coaches, staff, and our amazing fans—for making history with back-to-back trips to the Western Conference Finals for the first time in our 36-year history. Thank you Wolves fans everywhere. Your support has been unreal all season… — Alex Rodriguez (@AROD) May 29, 2025 The season came to a disappointing end in a 4-1 series loss to the Oklahoma City Thunder in the Western Conference finals, but these Timberwolves have redefined what qualifies as disappointment. Forever, the Timberwolves could only hope for lottery luck at this time of year, putting all of their faith in ping-pong balls and a potential savior waiting to join them via the draft. Their savior arrived five years ago in the form of Anthony Edwards, and now the Wolves are disappointed not by where they finish in the lottery, but by how close they have come the last two years to competing for a championship. Advertisement This was a sometimes frustrating and sometimes thrilling season that started with an earthquake created by the trade of franchise player Karl-Anthony Towns to New York two days before training camp opened. The Wolves endured difficult early days while incorporating newcomers Julius Randle and Donte DiVincenzo, but persevered through the growing pains and finished the regular season by surging to the sixth seed in the Western Conference. They beat LeBron James, Luka Dončić and the Los Angeles Lakers in the first round, Draymond Green, Jimmy Butler and the Golden State Warriors in the second and ultimately were drowned out by the 68-win Thunder in the conference finals. 'I think pretty rewarding is probably my encapsulation of the season, just because we went through a lot of trials and tribulations,' coach Chris Finch said a day after the loss. 'I'm not going to lie: It wasn't an incredibly fun season for me at times, and I don't think it was for our guys. But we always found a way to figure it out and get better, and that's always the rewarding part.' As the Timberwolves head into the summer, they will face some of the normal personnel questions that most teams do when their season ends without a championship. Three key players — Randle, Naz Reid and Nickeil Alexander-Walker — can be free agents for a team without much spending power to replace them if they leave. Perhaps even more significantly, the franchise is about to embark on a seismic change the likes of which it has not experienced in 30 years. Sometime toward the end of June, team sources familiar with the process told The Athletic, the league is expected to hold a final vote to approve Lore and Rodriguez as the new majority owners of the Timberwolves and Lynx. The two partners prevailed over Taylor in a February arbitration ruling, essentially ending a tense and bitter power struggle for control of the franchises. Taylor bought the team in 1994, saving it from moving to New Orleans, and was there for the drafting of Kevin Garnett straight out of high school in 1995. The Wolves went through a long period of struggle after trading Garnett to Boston in 2007, missing the playoffs in 16 of 17 seasons and changing coaches and front-office leaders seemingly every two years. Advertisement Taylor will depart with the Wolves on much firmer ground. They have made the playoffs four straight seasons, including back-to-back conference finals appearances for the first time in franchise history and have a top-flight trio of leaders in president of basketball operations Tim Connelly, Finch and Edwards, who have injected the organization with stability and competitiveness, the likes of which it has never before displayed. Now it is up to Lore and Rodriguez, who recruited Connelly to Minnesota three years ago, to build upon the recent run of success. They plan to be much more aggressive with their investment on the business side of the operations, including formulating plans for a new arena, team sources told The Athletic. The partners have openly stated their firm commitment to keeping the team in Minnesota, and team sources reiterated that is the long-term vision for a team that is booming in popularity locally, thanks to their playoff runs the last two seasons. On the basketball side, things are expected to remain largely intact, team sources said. Connelly, whose trades for Rudy Gobert, Mike Conley, Alexander-Walker, Randle and DiVincenzo helped surround the team's young core with quality veterans to give the Wolves one of the deepest rosters in the league, can be a free agent this summer. Last year, he pushed back an option on his contract, enabling him to see how the ownership situation played out before deciding whether to commit long term to the Wolves. Lore and Rodriguez led the charge to get Connelly from the Denver Nuggets in 2022, luring him with a lucrative financial package and the promise to empower him as much as any lead executive in the league. Under Connelly, the Wolves became the first Minnesota men's pro team to reach the final four in two straight seasons since the old North Stars in the NHL in 1980-81. His trades for Gobert and Randle/DiVincenzo were widely criticized at the outset but validated over time as the players got acclimated to Minnesota and played pivotal roles in the franchise's rise to consistent contender status. Advertisement Now that the season is over, both sides are expected to discuss a new contract for Connelly, who received interest from the Detroit Pistons last offseason. Several other teams have been monitoring his contract situation, team sources said, to see if he becomes available, but two team sources said the Wolves are optimistic he will remain in Minnesota. Retaining Connelly would go a long way toward establishing the organizational continuity that is so important for consistent success in the NBA. Connelly's easy-going leadership style has helped relax what could often be a nervous, downtrodden basketball operations department. Lore and Rodriguez are involved in big-picture decisions about the roster, but have entrusted Connelly to make the moves he believes are needed. Finch, who has won more playoff games and has a better regular-season win percentage than any other coach in Wolves history, signed a contract extension during the 2024 playoffs. Edwards and Randle have been firmly in his corner, which has helped Finch hold the team accountable when things are going wrong. 'We're about to have our seventh different (NBA) champion in seven seasons. Unprecedented,' Finch said. 'We thought that some of these teams were on the verge of a dynasty and it didn't work out. And who knows? I like where we're placed, but we've got to keep pushing.' Despite Minnesota operating in the second apron of the salary cap this season, a team source told The Athletic that the Wolves plan to continue to be aggressive in constructing a roster around Edwards that can compete to come out of the Western Conference. The Wolves had one of the most expensive payrolls in the league this season and will pay more than $90 million in luxury taxes. But Lore and Rodriguez assembled a deep-pocketed group of limited partners and are prepared to continue to pay the luxury tax, a source said. If a team is in the second apron for multiple years, the CBA places extreme limitations on the tools available to add talent. It is possible that the Wolves could dip below the second apron, but still be a tax-paying team next season. Connelly is expected to reflect on the team's season and look ahead to the summer in a news conference early next week. Advertisement 'I'm sure the front office will be in contact with everybody, myself included, about their strategy and what they intend to do, and it's our intention to keep everybody here,' Finch said. 'And they always do a great job of communicating that. 'But we've also made a trade on the eve of training camp, so going away and doing a lot of planning doesn't feel like it's necessarily helpful.' Exactly how high the payroll goes remains to be seen. One of the reasons the Wolves made the Towns trade was to reconfigure their books, getting off of a salary that will pay Towns more than $60 million in 2027-28. That allows Connelly more flexibility to add depth to the roster, veering away from the top-heavy construction that is becoming untenable under the new CBA. They will face some potentially difficult decisions this summer with Randle and fan favorite Reid, both of whom can opt out of the final year of their deals to become free agents, and valuable bench guard Alexander-Walker, whose contract expires at the end of June. Given the salary cap constraints, it seems likely that the most realistic path forward is for the Wolves to retain two of those three players. Alexander-Walker was one of the biggest bargains in the league this season at $4.3 million and is due a significant raise this summer. He said on Thursday that it was too soon for him to truly start thinking about free agency, but did indicate a desire to keep the Timberwolves as an option going forward. 'For me to have this opportunity, and I love Minnesota, and what the fans have meant to me, what the team has meant to me,' Alexander-Walker said. 'This is the only place I've had a real opportunity to play and be the best version of myself. So, I'll definitely say yes. There's no way that I'm going to go into the offseason and X-out Minnesota. That'd be crazy.' Advertisement For much of the season, it seemed likely that Randle would opt into the final year of his contract at $30.1 million next season. But he played so well down the stretch of the regular season and through the first two rounds of the playoffs that he may have earned a long-term extension with the Wolves. Then came a difficult conference finals in which he struggled mightily in the second half of Game 1, the entirety of Games 2 and 4 and the first half of Game 5. Randle said he loves playing for Finch and playing with Edwards. He will take time to digest the season and talk with his family, but all indications are that he would like to remain in Minnesota. 'I will say that I love it here, and this is the most meaningful basketball that I've played in my career,' Randle said. 'And from how the organization has made me feel, from just my teammates and playing with Ant as our leader, I love it. There's a lot to be excited about. 'I haven't even really thought about it, but I will say having the ability to compete for a championship is everything that I ask for at this point in my career. So we'll see.' Reid was the Sixth Man of the Year last season and has become a cult-like figure in the Twin Cities for his rise from undrafted rookie to impact player. He will turn 26 in August and likely will get interest from several teams looking for a dynamic big. The Wolves know how valuable Reid is to the team and the community and will have discussions in hopes of retaining him, team sources said. Reid said he views himself as a starter in this league, which could influence his next contract. If Randle and Gobert remain in Minnesota, it would be hard to envision a spot for him in the first five. But Reid also knows how much he is valued here and how competitive the Wolves have been. 'If you want to be in a winning position, sometimes you might have to sacrifice,' Reid said. 'So I definitely view myself as a starter, but things happen, things change. You never know what's ahead of you until you talk about it and until you go through it.' Advertisement Should the Wolves lose any of the three, Connelly has constructed a deep bench filled with candidates to get time. Rookie forward Terrence Shannon Jr. acquitted himself well in the conference finals once he joined the rotation in Game 3. Jaylen Clark had some great moments this season as a defensive-minded wing and No. 8 pick Rob Dillingham is waiting in the wings for a bigger role after spending most of this season out of the rotation. Luka Garza, Josh Minott and Leonard Miller are in the mix as well. What was clear in the Thunder series is that the Wolves need another player who can create off the dribble, get to the paint and get his own shot as well as find others. That could come in the form of Dillingham or Shannon. Maybe McDaniels' upward trajectory continues and he adds that to his game. Or they might have to go outside the organization to find it. Conley spoke on Thursday as if he will return for a 19th season, but he is preparing for a reduced minutes load. Another point guard, whether that is Dillingham elevating or adding a veteran via free agency or trade, is imperative. 'I think my role is one that I've been willing to do anything,' Conley said. 'Just play any amount of minutes, start, come off the bench. Whatever you want me to do, I'll do. Whatever is best for the team.' What a roller coaster this season was in Minnesota. On the Friday before training camp opened, the Wolves traded Towns, the center of the Wolves' universe for nine years, to New York for Randle, DiVincenzo and Detroit's first-round pick in 2025. While many thought Towns could eventually be on the move because of his contract, few expected it to happen before the season started and coming off of the team's first run to the Western Conference finals in 20 years. Randle and DiVincenzo were equally stunned, and the early product on the floor showed as much. Advertisement The frustration boiled over on Nov. 21 in Toronto when Gobert, furious that he wasn't getting the ball in the paint against smaller players, lingered in the lane intentionally long to draw a 3-second violation. The Wolves lost the game to fall to 8-7, and there was an intense team meeting after the game where grievances were aired. It took the Wolves several months to figure things out. They were 8-10 on Thanksgiving, 14-14 on Christmas Eve and 22-21 in late January. The more time they spent around each other, the more they started to connect. Gobert and Randle talked often while both were out with injuries in February. 'We want to see each other win,' Gobert said earlier in the playoffs. 'I was telling Julius after the game, you've got a lot of disrespect your whole career and so do I. It's a good opportunity for us to write our own narrative. Winning does that.' The Wolves finished the regular season 17-4 to climb from the Play-In field to that No. 6 seed. They cruised past the Lakers, 4-1, in the first round, then took advantage of Stephen Curry's injury in Game 1 of the second round and beat the Warriors, 4-1. Randle was a revelation, averaging 23.9 points, 5.9 rebounds and 5.9 assists through the first two rounds. Edwards showed a mastery of clutch time that had eluded him in the regular season. McDaniels was a two-way demon. The Wolves celebrated overcoming all of the early season sludge to get back to the conference finals, as they should have. This is a franchise that was synonymous with losing for so long. But with Connelly, Finch and Edwards leading the way, a new level of consistency and competency is upon them. That's what made Game 5 in Oklahoma City so disappointing. A team that has prided itself on responding with force when its back is against the wall completely crumbled in the biggest moment of the season. The Thunder proved to be the deeper, smarter and more consistent team. They are also younger than the Wolves, meaning they will continue to be an obstacle going forward. The bar has been set. Advertisement As satisfying as it was for the Wolves to make it this far, it is also clear that they still have a long way to go if they are to take that final step. Few expected them to make a return appearance in the conference finals when the season began. Once they got there, few expected them to go out as meekly as they did. As they enter the unfamiliar territory of contender status, the expectations rise. The urgency rises as well. After Game 5, Finch said it is possible that all 15 teams in the Western Conference will enter next season competing for the playoffs. The path will only get thornier from here. The Wolves have much to celebrate and many questions to answer. 'This point in time, you want to go further,' Finch said, 'but we've got to try to lay a foundation where we can keep learning.' A critical summer awaits. (Illustration: Demetrius Robinson / The Athletic; top photos: David Berding, David Sherman / NBAE, Jordan Johnson / NBAE / Getty Images)
BBC News
09-05-2025
- Sport
- BBC News
Teacher Taylor aiming for Moors glory at Wembley
Spennymoor Town are used to punching above their weight in non-league football. But on Sunday, they aim to land the biggest punch in their National League North side are heading to Wembley for the FA Trophy final to take on Aldershot Town from the league County Durham club have already knocked out three National League sides to get here and have a fourth one in their if Spennymoor can be victorious at the national stadium, they will become only the second club to have won both the FA Trophy and the FA of their big day in London, BBC Sport has spoken to two people entwined in the club's fabric. Schooling pupils, and defenders By day, he is 'Sir'. But on a Saturday afternoon and Tuesday evenings, Glen Taylor turns into one of the most prolific strikers in non-league has been with Spennymoor since 2017, which he has combined with family life and teaching at a school in has plundered 210 goals in 394 appearances, during which time they have been ever present in the sixth tier league against teams with bigger attendances and greater were chances to join the paid ranks, but the striker, who turns 35 on Sunday, explains why he has stayed loyal to the Moors."I could have left when I was 27, 28," he said. "But we had just had our first child and I had a good career."It could have meant leaving my job and leaving the area on a one or two-year deal for less money. That never made any sense."People say, 'you've got no ambition', but it's about making sensible decisions. If you asked someone to go and work for a better company but on significantly less money, they wouldn't do it."I couldn't be happier. I have a really good job and I'm at the best non-league club in the north east." 'Good goal, sir' Taylor works at World Alternative Education, a school for boys who have been excluded from mainstream believes that his footballing exploits have allowed him to establish a positive rapport with his pupils."All the boys are into football and it helps that one of the other teachers is an EFL assistant referee," he added. "I think I've gained a bit of respect from them because of it."The usual questions I get asked are 'how much do you get paid?' or 'how did you get on?' "Occasionally I'll come in on a Monday and they'll say 'That was a good goal,' as they will have found it on YouTube."But it helps the relationship. We play football on Wednesday so they've seen me play. "I try to stay at the back and keep clear of trouble. You won't catch me trying to take the ball on the half-turn on the halfway line against them!" Spennymoor are aiming to become only the second club after AFC Fylde to win both the Vase and the finished ninth in the National League North this season competing against fully professional sides while still operating on a part-time basis, with the squad training on Tuesday and Thursday run to Wembley has seen them knock out National League sides Boston United, Sutton United and Rochdale in the it has created lots of special memories for head of football Jason is 'Mr Spennymoor', having first signed for them as a player and then worked as assistant manager, coach, 13 years as manager and now his current he was in charge in May 2013 when they defeated Tunbridge Wells to lift the FA Vase."We get crowds of 1200-1300 from a population of 22,000 so the football team is a big part of what the community is all about," Ainsley said. "For a club the size of ours to get to Wembley twice in 12 years, it's phenomenal really."In the Vase, we were the big pull at that time because we had a really strong team, the elite of north east players. North east clubs had a monopoly on the Vase and Spennymoor were expected to do really well."Now, it was important to have a good run but we've beaten some really strong sides."At Rochdale, I got a car park space at the ground and we had flyers on our car doors about transport to Wembley! "I think they just expected to turn up and win but we equalised with the last kick of the game and then stood up under pressure and scored all five penalties."That game just summed up Spennymoor." The Moors have become used to battling against the odds, operating as a part-time club against former EFL regulars like Scunthorpe United and Chester the last few years, they have had to compete against Stockport County, Salford City and Harrogate Town, who have gone on to survive and thrive at higher Spennymoor have found a way of succeeding by drawing on their unique spirit and togetherness."There are probably a lot of teams punching far less above their weight than we are," Ainsley added."Teams don't like coming to play us. Our pitch has a little bit of a slope on it and we have players who never give up and have that north east fighting spirit. "They don't want to come here on a Tuesday night." 'Didn't even enjoy celebrations' Ainsley will take his seat in the royal box at Wembley, confident that his day will BE less nerve-wracking than in he will understand the emotions that manager Graeme Lee will be enduring on the touchline down below."Last time, I didn't even enjoy the night," he recalled. "I had a few pints and went to bed, I was just shattered. "Now, it's a great occasion and I can take my seat and see the different level we're at from when I was manager. It will fill me with immense pride."
New York Post
05-05-2025
- Business
- New York Post
US tax dollars subsidizing egg manufacturers' insane profits — while they continue to ‘price gouge' due to bird flu
America's egg producers are making record profits while receiving tens of millions of dollars from taxpayers via the USDA for bird-flu related culls, The Post has learned. Cal-Maine, the country's largest egg producer, made $876 million net profit over the last nine months, it announced in April. The figure was five times the $164 million it had made in the same period during their 2024 financial year. The profits are being driven by the continued sky high price of eggs for consumers — currently $4.60 per dozen — pushed up by birds being culled due to avian influenza. 8 Chart showing how Cal-Maine's net income profit has grown tremendously in the last five years. In 2024 the company spent a significant amount buying out competitors, affecting overall profits. Jack Forbes / NY Post Design Cal-Maine – whose brands include Land O' Lakes and Egg-Land's Best – said price increases were 'a direct result of the reduced supply of shell eggs across the industry due to [avian flu] during a period of peak seasonal demand for eggs and egg products,' according to its quarterly report. Publicly traded Cal-Maine, which has approximately 47 million laying hens, had to cull about 4% of its flock amid bird flu outbreaks, which started in 2022. For each of those birds they receive between $15 and $17 per hen from the US Department of Agriculture (USDA). The company temporarily shuttered one of its facilities in Texas last year, slaughtering nearly two million hens and receiving $21m in USDA money. A cull of 1.5m hens at one of its facilities in Chase, Kansas, the year before resulted in a payment of $22m, according to Inside Indiana Business. Taxpayers have shelled out $1.25 billion in bird flu compensation payments since 2020 through to November of last year, according to the Federal Register. Cal-maine isn't the biggest beneficiary of USDA payments to date. Hillandale, one of the top five egg producers in the country with facilities in Ohio and Pennsylvania, received $53 million, according to the Washington Post. Another of the top producers, Versova, which has around 20 million hens at operations in Iowa and Ohio, has been allotted more than $107 million, according to the report. 8 Dead chickens killed as a precaution in a bird flu infected area being loaded onto a truck. AP Those companies areall privately owned and therefore not required to publicly disclose profit figures. Neither does Iowa-based Rembrandt Foods, which received $26 million in USDA payments when it was owned by billionaire Glen Taylor, according to local news reports from the time. It's unclear whether Taylor still owns a stake, according to The Washington Post. Angela Huffman, who is the president and co-founder of Farm Action – a group backed by smaller farmers to take aim at 'corporate monopolies' – accused the egg producers of 'corporate greed' for accepting millions in taxpayer-funded relief payments from the federal government while quietly breaking the bank. 'During [the early months of 2025 when Cal-Maine made $508 million profit], they were blaming high egg prices on losses from avian flu, which prompted USDA Secretary Rollins to commit one billion dollars to the egg industry,' Farm Action president Angela Huffman told The Post. 'There is no reason that the largest egg producer in the nation should be bailed out by our government while simultaneously tripling their profits.' Ironically, the egg companies have been laughing all the way to the bank since the epidemic began. In the first three months of 2021, Cal-Maine made $359 million in sales. Four years later, its revenue has quadrupled — even though they only sold about 20% more eggs, Fortune reports. 8 Cal-Maine, which produces roughly one-fifth of the nation's eggs, lost about 4% of its flock in recent years to bird flu outbreaks. Getty Images Cal-Maine's financial reports show it has been able to more than triple its average price for a dozen eggs, from about $1.30 before the outbreak to as high as $4.06. However, the consumer pays even more – with American shoppers reaching a record peak of $6.23 for a dozen eggs in March, according to the Consumer Price Index. According to Huffman, instead of using the windfall profits they are earning from the record egg prices to rebuild or expand their egg-laying flocks, the largest egg producers are using them to buy up smaller rivals and further consolidate market power. 8 Federal regulations require farmers to kill all birds in a flock if avian flu is discovered. Cal-Maine Foods Although Cal-Maine produces 90% of their own eggs, farms who have a contract to supply eggs to them are paid just $0.27 per dozen, per an investigation by Farm Action. An investigation to alleged price-fixing for eggs has been launched by the Department of Justice. In January, egg prices rose 15.2% — and the USDA predicts egg prices will increase at least another 41% this year, The Post previously reported. In some New York City supermarkets, the price for a dozen regular eggs has hit or surpassed the $10 mark. Stores offering lower prices, including Trader Joe's and Costco, have imposed limits on how many customers can buy. 'If taxpayers are going to subsidize egg producers for flocks lost to bird flu, then the least those companies could do is not price gouge consumers,' a source, who spoke on condition of anonymity, told The Post. 8 Nationwide, the price of eggs hit a record in February, and is expected to rise as much as 40% more this year, according to the USDA. AP 8 The USDA's indemnity program pays a set price per bird killed, with some added compensation for cleaning and disinfecting. Getty Images In a March letter to the Federal Trade Commission and Department of Justice, Farm Action claimed that Cal-Maine Foods has taken advantage of the avian flu crisis to 'raise prices, amass record profits and consolidate market power'. While US egg farms have destroyed some 115 million hens over 24 months to stop the spread of bird flu, the largest suppliers are showing 'a remarkable unwillingness' to invest in expanding their flocks, according to the letter. The group has accused leading egg producers are keeping the supply of new egg-laying hens 'stagnant' in order to prolong their run of record profits. The other companies accused of colluding with Cal-Maine are the four other largest egg producers, each with between 15 and 30 million hens: Rose Acre Farms, Daybreak Foods, Hillandale Farms, and Versova Holdings. 8 Egg company Cal-Maine Foods ell short of the market's revenue expectations in Q1 CY2025, but sales rose 102% year on year to $1.42 billion. Christopher Sadowski 8 In February, the Trump administration announced an additional $1 billion in funding for combatting bird flu. AP Cal-Maine did not respond to The Post's request for comment. The Trump administration has announced new measures to tackle bird flu including ramping up biosecurity measures and increasing the compensation paid out when infected flocks are killed. The US egg-laying flock has yet to return to its pre-epidemic size of around 330 million hens. During the last bird flu outbreak from 2014 to 2015, producers lost and replaced over 35 million hens in less than a year, making a full recovery from the outbreak. This time around, there is no recovery in sight after two years. In 2023, Cal-Maine and three other egg producers were ordered to pay $17.7 million in damages by a federal jury after food suppliers accused the companies of conspiring to limit the egg supply in the US.
Washington Post
08-04-2025
- Business
- Washington Post
As egg prices soared at the supermarket, so did producer profits
The avian influenza outbreak has had far-reaching consequences: More than 120 million hens have been slaughtered and egg prices have risen to record levels. In his address to Congress, President Donald Trump called the situation 'out of control.' Yet for some corporate egg companies, these are good times. On Tuesday, the nation's largest egg producer, Mississippi-based Cal-Maine, is expected to announce another round of earnings to cap three years of extraordinary profits, which have surged since the avian flu outbreak in 2022. By wiping out millions of laying hens, the avian flu has slowed egg production for many companies. But the outbreak also has driven up prices enough for some companies to recoup losses and, for Cal-Maine, to record substantial profits. Cal-Maine's financial reports show it has been able to more than double its price for a dozen eggs, from about $1.30 a dozen before the outbreak to as high as $3.30 a dozen, while their feed costs to produce an egg have been relatively stable. At the same time, Cal-Maine and other large egg companies have received tens of millions from the USDA, which has been doling out relief payments to help egg companies restock after the virus strikes. Cal-Maine, which produces about 20 percent of the nation's egg supply, has benefited from the government program twice. After the virus led to the slaughter of 1.5 million hens at its facility in Chase, Kansas, the USDA paid Cal-Maine more than $22 million, according to the federal spending website, and outbreak reporting from the Centers for Disease Control and Prevention. Similarly, after the virus led to the slaughter of 1.6 million hens in Farwell, Texas, the USDA set aside another $21 million for the company. As a result, even though the avian flu reduced the ranks of the company's hens by about 4 percent, the USDA payments and higher egg prices sent its profits soaring. Officials with Cal-Maine did not respond to repeated requests for comment. The company isn't even the biggest beneficiary of USDA payments so far. Hillandale, which has operations in Ohio and Pennsylvania, received $53 million, according to the federal figures. Versova, a family of companies with farms in Iowa and Ohio, has been allotted more than $107 million. Those outfits, which are private, do not release profit figures. Neither does Iowa-based Rembrandt Foods, which has received $26 million in payments — when it was owned by billionaire Glen Taylor, according to local news reports at the time. It's unclear whether Taylor, who did not respond to requests for comment, still owns a stake. Versova, Rembrandt Foods and Hillandale did not respond to requests for comment. 'For those companies to be bailed out and then turn around and set exploitative prices, it just adds insult to injury for consumers,' said Thomas Gremillion, director of food policy at the Consumer Federation of America, one of several industry critics decrying government payments to big egg producers. 'Absolutely, it's unfair.' While large egg-producers with multiple far-flung locations like Cal-Maine may thrive during the outbreak, industry analysts said smaller farms stricken with the virus are far more likely to suffer — because while prices may be high, their single location may not be producing any eggs. It can take months, even as long as a year, for smaller farms to restart production after an infection. The USDA payments defray the cost of the birds, but they do not pay for the down time in production. While the USDA payments 'do not come close to covering the financial toll when an egg farm must depopulate its flocks and rebuild its business, in many cases it means the difference between recovering or going out of business,' Emily Metz, president of the American Egg Board, said in statement. 'A larger egg producer with multiple locations is better equipped to survive the loss of a flock than a producer with a single location, but it's important to know that regardless of the size of operations, a bird flu detection is absolutely devastating to any egg farm.' Egg producers are poised to receive even more government relief. In a little-noticed move late last month, U.S. Agriculture Secretary Brooke Rollins announced that compensation for affected egg farms would rise from $7 per lost chicken to almost $17 — a huge increase for farms that count as many as 5 million hens. Earlier this year, Cal-Maine president Sherman Miller said that 'without question, we have recently faced significant challenges within our company and the entire egg industry due to the ongoing outbreaks.' At the time, he was announcing quarterly profits of $219 million, which dwarfed those of pre-flu times. In the year before the outbreak, Cal-Maine's quarterly profits averaged $5 million; over the last four quarters, profits have averaged $138 million. The number of eggs it produced rose less than 10 percent over that time, meaning much of the profit comes from higher egg prices and government relief payments. As reported infections — and henhouse 'depopulations' — have declined since February, consumers have seen a drop in prices. Prices remain higher than before, however, and the uncertain course of the virus means they remain vulnerable to another spike. 'There are no clear-cut answers on how to stop this thing or when it's going to stop,' said Brian Moscogiuri, vice president of Eggs Unlimited, an egg supplier and broker. Moscogiuri noted that the pace of henhouse infections stalled in the spring of 2023. But then it returned. The outbreaks appear to be linked to the migration patterns of wild birds. 'The industry is trying to repopulate as quickly as possible,' he said. The flu outbreaks, which lead to the mass killings of hens, have been blamed for the huge price jumps. Over the fall and winter, for example, more than 50 million laying hens were killed; consumer egg prices nearly doubled, from an average of $3.20 in August to $5.90 in February, according to figures from the Bureau of Labor Statistics. Federal law gives the USDA authority to slaughter birds in facilities where there has been an infection. The disease spreads quickly in poultry facilities and the mortality rate for infected chickens can be as high as 100 percent, according to the CDC. The USDA pays the affected farms, to encourage them to report the outbreak. Early reporting 'allows us to more quickly stop the spread of the virus to nearby farms,' Lyndsay Cole, an assistant director of public affairs at the USDA, said by email. She noted that while the indemnity payments cover the costs of destroyed birds and eggs, they do not cover the losses that come with the disruption of closing down a facility for cleanup. The USDA is still seeking more permanent solutions for the avian flu's effect on the egg industry. Rollins said she was working with billionaire Elon Musk's U.S. DOGE Service to find savings that could be devoted to the effort. 'We will repurpose some of those dollars by investing in long-term solutions to avian flu,' she wrote in a Wall Street Journal op-ed. Sebastien Pouliot, an agricultural economist and former Iowa State University professor who studied egg economics, said it makes sense that some of the large companies with multiple far-flung operations would be making money during the avian flu scare. Even if one of their facilities is temporarily closed by the virus, those losses will be mitigated by the government, and the eggs sold by their remaining facilities will fetch far higher prices. Whether a company benefits from rising egg prices also depends on how much of their production is sold under long-standing contracts at lower prices. Regardless of farm size, said Metz, of the American Egg Board, the payments serve an important purpose. 'First and foremost, food security is national security. When you look at the indemnity [payment] programs, this is national disaster relief,' she said, adding that 'no amount of money can compensate for the emotional toll that this disease exacts on farmers and their employees. Farmers spend their lives raising hens; depopulation is agonizing and traumatic—it runs counter to everything these farmers know and do daily.' While consumer frustration is understandable, she said, egg prices are essentially a product of changes in supply and demand. 'This is an incredibly complex issue,' she said. But 'if you are looking for a bogeyman, it's the bird flu.'
CBS News
03-04-2025
- Business
- CBS News
Minnesota Timberwolves playoff tickets go on sale Friday
The Minnesota Timberwolves are prepping for a playoff run, and fans can get their hands on tickets starting Friday morning. As of Thursday morning, the Wolves hold the No. 6 seed in the Western Conference. If that holds through the remainder of the season, they would avoid the play-in tournament and have a matchup with the No. 3 seed. But things are tight in the Western Conference race, with the current No. 7 and 8 teams — the Los Angeles Clippers and Memphis Grizzlies — holding the same record as the Wolves. With five games left, the Wolves' seeding is still very much up in the air. Accordingly, the team is offering tickets for both play-in games and a potential first-round matchup. They'll go on sale Friday at 11 a.m. on the Wolves' website . Last season, the Wolves rode the No. 3 seed to the Western Conference Finals, where they lost in five games to the Dallas Mavericks. It was the team's best season in 20 years. While this year's team has taken a step back as it adjusted to an influx of new talent and dealt with injuries, the Wolves still rank in the top 10 in both offensive (9th) and defensive (6th) rating, making them a dangerous team heading into the postseason. On Wednesday, The Athletic's Jon Krawczynski reported an agreement is in place to transfer ownership of the Wolves and Lynx from Glen Taylor to Alex Rodriguez and Marc Lore. The agreement comes after an arbitration panel ruled in favor or Rodriguez and Lore in a dispute over the final phase of the $1.5 billion sale. Taylor previously told WCCO's Mike Max he would not fight the panel's ruling and would move forward with the sale.
