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Boston Globe
13-05-2025
- Business
- Boston Globe
US egg prices fall for the first time in months but remain near record highs
While wholesale egg prices have been coming down for a while, it was unclear how much store prices would decrease in April because consumer demand is usually high around Easter and Passover. Still, retail egg prices remain near historic highs as a persistent outbreak of bird flu wipes out flocks of egg-laying hens. The April figure is 79 percent higher than the same month a year ago, when the price averaged $2.86 per dozen. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up Bird flu has killed more than 169 million birds since early 2022. Any time a bird gets sick, the entire flock is killed to help keep bird flu from spreading. Once a flock is slaughtered, it can take as long as a year to clean a farm and raise new birds to egg-laying age. Advertisement That can have an effect on the egg supply because massive egg farms may have millions of birds. Outbreaks on two farms in Ohio and South Dakota last month affected more than 927,000 egg-laying hens. Lowering egg prices has been a particular focus of President Donald Trump. In February, the US Department of Agriculture said it would invest $1 billion to help farmers improve their biosecurity measures to fight bird flu. Advertisement The US has also increased imports of eggs from South Korea, Turkey, Brazil and other countries. According to Wells Fargo Agri-Food Institute Sector Manager Kevin Bergquist, the volume of egg and egg product imports increased 77.5 percent during the first three months of the year compared to the same period a year ago. The antitrust division of the US Department of Justice is also investigating Cal-Maine Foods, the largest US egg producer, which supplies around 20 percent of America's eggs. Cal-Maine confirmed the investigation in early April.. Ridgeland, Mississippi-based Cal-Maine said its net income more than tripled to $508.5 million in its most recent quarter, which ended March 1.
NBC News
21-04-2025
- Business
- NBC News
Helene-hit farmers are still scrounging for recovery funds six months on
The White House didn't comment on Stein's request but said the administration would continue to support farmers. 'President Trump cares deeply about our farmers and all Americans impacted by the devastation of Hurricane Helene, which is why he personally evaluated the damage and led a historic recovery effort,' spokesperson Anna Kelly said. 'He will continue to ensure our farmers have the policies and resources they need to feed the world.' Local aid organizations say they're still responding to elevated food insecurity throughout the region. 'The flow of aid from the government — both state and federal government — has not yet scaled to the situation at hand,' said Paula Sellars, deputy director of the local nonprofit group Bounty & Soul. We're seven months out, and the large dollars have not yet trickled down to the local person. Paula Sellars, deputy director of Bounty & Soul The organization partners with over 70 regional farms to provide free food to communities around Black Mountain and Swannanoa, but Sellars said it has been a heavy lift to expand operations while local growers that supply the group are still getting back on their feet. Fortunately, Bounty & Soul has seen an outpouring of generosity from people looking to help, and 'the scale of what we're doing has increased tremendously,' she said. Sellars estimated the group's food purchasing budget has swelled by 340% since Helene. Before the hurricane, Bounty & Soul would typically organize six food markets a week for those in need; now it runs 10, serving over 25,000 people every month. While the organization still buys produce from local farmers, it has had to supplement that with purchases from wholesalers to handle higher demand. And Sellars said she knows Bounty & Soul can't meet the needs of western North Carolinians solely through private donations, which are liable to wane as time goes on. 'The nonprofit sector is very much shouldering the burden of recovery in many of this region's smaller communities,' she said. Disasters tend to push out farmers who were already struggling financially, said Michael Swanson, chief agricultural economist at the Wells Fargo Agri-Food Institute, an industry news service. 'Somebody usually takes up the acreage and does the crops, but there's a shifting around between the people that were doing better and just want to keep on trying it and those that say, 'I was thinking about getting out anyway,'' Swanson said. Ager said he has been pushing fellow lawmakers to expedite more funding but warned that the state aid package 'is probably getting here a little bit too late to get some fields back up and running in time' for spring planting. State-level relief can be quicker to arrive than federal funding, which is usually administered through the Agriculture Department through local farm service agencies, he said. 'We're already slow in reality and should have done more sooner,' said Ager, also a fourth-generation farmer who raises beef and pork with his brother at Hickory Nut Gap Farms in Fairview. Helene knocked out power for a month at the property, downed trees and washed out roads. 'There was plenty of cleanup to do,' Ager said, but he added that he 'felt pretty fortunate' relative to what other growers endured. WNC Communities, a local agriculture nonprofit group, has been providing emergency disaster funding for farmers in recent months. 'We filled a gap where we knew that there wasn't going to be any other funding,' said Executive Director Jennifer Ferre, who estimated having doled out $2.1 million to 385 farmers so far. Like other local nonprofit groups, WNC Communities received an influx of private donations that it distributed quickly to help farmers restart operations as best they could. But there were limits to the organization's support — it could often help buy gravel to repair a road between pastures but not rebuild a collapsed barn, Ferre said. 'The need was so overwhelming,' she said. 'We had to look and try to prioritize what we thought was going to be able to help folks ... get back into business the quickest.' Ferre said she's also trying to be a resource for the farmers her group has assisted as new funding turns up. Applying for grants can be complicated, and it requires documentation of losses at a time when many farmers are simply trying to pay their bills. What farmers need is 'quick money,' said Laura Lauffer, director of the EmPOWERing Mountain Food Systems program at North Carolina State University. By the time Helene hit, her initiative had already set up a program offering $3,000 business grants for regional farmers. Afterward, it streamlined the application process to get money out faster. 'We want to be really strategic,' Lauffer said, adding that the group is focused now on figuring out 'how we can have the most impact with this little bit of money.' The start of this year has brought substantial cuts at the Agriculture Department, including $1 billion in food bank and school lunch programs, as part of a sweeping Trump administration push to downsize government that has frequently generated chaos, confusion and policy reversals. The Agriculture Department 'is working diligently to roll out our portion of the disaster assistance across the U.S. over the coming months,' a White House spokesperson said in a statement. A spokesperson for the agency said Agriculture Secretary Brooke Rollins is focused on addressing the needs of impacted farmers and 'will ensure that those areas have the resources and personnel they need to continue serving the American people.' For now, the need gap remains. 'To legislators and those who are in positions of decision-making around disaster relief funding, I would just say: Please pick up the pace,' Sellars said. 'We're seven months out, and the large dollars have not yet trickled down to the local person.'
USA Today
31-03-2025
- Business
- USA Today
Will Trump's tariffs raise prices? Here's how 'Liberation Day' affects imports.
Will Trump's tariffs raise prices? Here's how 'Liberation Day' affects imports. Show Caption Hide Caption Mexico-US reach tentative tariff agreement President Donald Trump and Mexican President Claudia Sheinbaum have agreed to pause tariffs on Mexican imports for one month. President Donald Trump's plans to impose reciprocal tariffs and a 25% auto tariff on imports to the United States are likely to slow production and drive up prices, even if he reaches deals to temporarily pause them, as he did in the case of Mexico and Canada. Trump's decision to levy 20% tariffs on imports from China and 25% tariffs on imports from Mexico and Canada earlier this year created uncertainty that is likely to raise prices until a permanent solution is found, said Mike Skordeles, head of U.S. economics at Truist. While prices are expected to increase across the board, some items will see a price bump more quickly than others. For instance, consumers are likely to pay more for perishable foods sooner than they will pay more for their cars. The U.S. received 51% of its fresh fruit and 69% of its vegetables from Mexico in 2022, according to the U.S. Department of Agriculture. A one-month pause on 25% tariffs for those items doesn't mean their prices won't rise. "If I was a producer, I'd say I need to get a little more for that stuff because there is a risk it might get shut down in a month," Skordeles said. In theory, companies can stockpile some amount of car parts. They can't stockpile avocados, which spoil within a week. But Dr. Michael Swanson, a Wells Fargo Agri-Food Institute chief agricultural economist, said those price increases might not reach your grocery store until after this weekend's Super Bowl. There may still be time to grab ingredients for guacamole. "It's unlikely that changes in tariffs will impact prices headed into the Super Bowl, however, we'll see how it plays out in the coming weeks," Swanson told USA TODAY. "This is certainly the year for consumers to stay food fluent." More: What items will cost more? What to know about Trump's tariffs on Canada, Mexico, and China Oil tariff will affect costs of most products Trump's originally proposed 10% tariff on Canadian oil, which Skordeles said equates to a roughly 16 cent increase per gallon, would eventually raise the price of almost everything because companies need fuel to transport their products across the country. Retaliatory actions by the three U.S. trade partners are also likely to stir up trouble for American companies. "This is a mess," Skordeles said. "There are so many unintended consequences." Tariffs are a tax on the exchange of goods between countries, largely paid for by American companies in this instance. In a world where free trade in North America has been a given for decades, many supply chains, particularly those for cars, involve goods moving across borders before a product is ready to be sold to American consumers. Trump's originally proposed tariffs were likely to hit those who work in the automotive industry or are looking to buy a car hardest, because passenger vehicles and vehicle parts are some of the top imports the U.S. receives from Canada. Several car parts may need to travel across the border, sometimes on multiple occasions. Skordeles gave the example of a car company transporting transmissions. With tariffs in effect, it has to pause each time so U.S. Customs can count how many there are and ensure the correct tariffs are being applied. This process increases costs − costs that are likely to be passed on to consumers − and slows production, which could lead to supply shortages that further drive up prices. "You might see prices go up not just for new cars but for used ones, too, as any additional scarcity in the market often drives more would-be new shoppers to consider used cars," Stef Schrader told USA TODAY. "Cars that depend heavily on imported parts or are fully imported from the affected countries will likely see price hikes first." China tariffs more likely to stick Tariffs on China are more likely to stick than those on Canada and Mexico, Skordeles said. There is precedent for the U.S. imposing tariffs on China that stuck around during Trump's first term and during President Joe Biden's time in office. American consumers feel less impact of import tariffs at the checkout line if there are domestic substitutions for them, which the U.S. has sometimes been able to find in the past. At times when there was no substitution for imports, such as iPhones that are assembled abroad, Apple successfully lobbied to make their product exempt from Chinese tariffs. Contributing: Bailey Schulz Reach Rachel Barber at rbarber@ and follow her on X @rachelbarber_
CNN
19-03-2025
- Business
- CNN
Trump is claiming credit for plummeting egg costs. So why haven't you noticed lower prices?
The Trump administration is declaring victory for defeating a massive pain point for inflation-weary Americans: Egg prices are plunging. 'When I took it over, eggs were through the roof, and now eggs are down,' President Donald Trump said Sunday aboard Air Force One. White House Press Secretary Karoline Leavitt said at a press briefing Monday that falling egg prices show the administration is working quickly and diligently to solve America's affordability crisis. 'Wholesale egg prices, they continue to fall. A dozen eggs are now $3.10 cheaper since January 24. That's a 47% decrease overall,' Leavitt said. 'So I think the American people do have great reason to be optimistic about this economy.' But if you haven't noticed lower egg prices at the grocery store, you're not alone. The reason is a key word Leavitt included: 'wholesale.' Those are the prices distributors buy from farmers or middlemen. Consumer prices, which is what you're charged at the grocery store, aren't falling – they're rising. For the third straight week, wholesale egg prices fell to $4.15 per dozen, according to the US Department of Agriculture, a 30% decrease from the week before when prices were $6.85 a dozen. But the average price for consumers is $5.90 per dozen eggs, up $0.94 from last month, the USDA notes. That's because grocery stores may decide to keep prices at a higher price, even when wholesale prices drop, to try to recoup lost profits from prior weeks, noted Kevin Bergquist, sector manager at Wells Fargo Agri-Food Institute, in an email to CNN. 'These declines (in prices) have yet to be reflected at store shelves and, until they are, demand is expected to remain dampened,' the USDA said in its weekly egg markets report. Consumer and producer prices for eggs have softened a little - but they are still extremely high. In grocery stores, egg prices rose 10.4% in February, according to the Consumer Price Index. Egg prices for businesses rose 28.1% last month, according to the producer price index. 'When or if consumers may benefit from lower wholesale prices is unpredictable,' said Bergquist. 'There exists a disconnect between wholesale egg prices and retail egg prices for consumers. Each grocer makes independent egg pricing decisions based upon its own business goals.' Although Trump is cheering falling wholesale prices, he and his $1 billion avian flu response plan are not to thank just yet. The plan, aimed at combating the spread of the deadly avian flu which has killed 127 million egg laying birds since 2022, was announced by the Secretary of Agriculture Brooke Rollins on February 28, just as prices for wholesale eggs started falling. The USDA report cites two reasons for the decline in prices: decreased demand and fewer cases of avian flu. Consumers got tired of paying higher prices, so demand fell, which means egg prices should decline. Mexico and Turkey are also sending a combined 10 millions eggs, or 827,000 dozen eggs to offset short supply in the US, according to the USDA. So far, they are tariff free. The US produces an average of 90 billion eggs annually, according to the American Egg Board. This year the Easter and Passover holidays fall later, in mid-April, which means more time for egg supply to catch up to holiday demand. 'People are likely to buy eggs no matter the cost because it's an Easter tradition. So right now consumers may be saving their egg money for another week or two,' said Bergquist. But that doesn't mean consumers will find a deal then. The holidays also fall during the spring migration, and wild birds are the biggest spreaders of the virus to egg laying flocks.
CNN
18-03-2025
- Business
- CNN
Trump is claiming credit for plummeting egg costs. So why haven't you noticed lower prices?
The Trump administration is declaring victory for defeating a massive pain point for inflation-weary Americans: Egg prices are plunging. 'When I took it over, eggs were through the roof, and now eggs are down,' President Donald Trump said Sunday aboard Air Force One. White House Press Secretary Karoline Leavitt said at a press briefing Monday that falling egg prices show the administration is working quickly and diligently to solve America's affordability crisis. 'Wholesale egg prices, they continue to fall. A dozen eggs are now $3.10 cheaper since January 24. That's a 47% decrease overall,' Leavitt said. 'So I think the American people do have great reason to be optimistic about this economy.' But if you haven't noticed lower egg prices at the grocery store, you're not alone. The reason is a key word Leavitt included: 'wholesale.' Those are the prices distributors buy from farmers or middlemen. Consumer prices, which is what you're charged at the grocery store, aren't falling – they're rising. For the third straight week, wholesale egg prices fell to $4.15 per dozen, according to the US Department of Agriculture, a 30% decrease from the week before when prices were $6.85 a dozen. But the average price for consumers is $5.90 per dozen eggs, up $0.94 from last month, the USDA notes. That's because grocery stores may decide to keep prices at a higher price, even when wholesale prices drop, to try to recoup lost profits from prior weeks, noted Kevin Bergquist, sector manager at Wells Fargo Agri-Food Institute, in an email to CNN. 'These declines (in prices) have yet to be reflected at store shelves and, until they are, demand is expected to remain dampened,' the USDA said in its weekly egg markets report. Consumer and producer prices for eggs have softened a little - but they are still extremely high. In grocery stores, egg prices rose 10.4% in February, according to the Consumer Price Index. Egg prices for businesses rose 28.1% last month, according to the producer price index. 'When or if consumers may benefit from lower wholesale prices is unpredictable,' said Bergquist. 'There exists a disconnect between wholesale egg prices and retail egg prices for consumers. Each grocer makes independent egg pricing decisions based upon its own business goals.' Although Trump is cheering falling wholesale prices, he and his $1 billion avian flu response plan are not to thank just yet. The plan, aimed at combating the spread of the deadly avian flu which has killed 127 million egg laying birds since 2022, was announced by the Secretary of Agriculture Brooke Rollins on February 28, just as prices for wholesale eggs started falling. The USDA report cites two reasons for the decline in prices: decreased demand and fewer cases of avian flu. Consumers got tired of paying higher prices, so demand fell, which means egg prices should decline. Mexico and Turkey are also sending a combined 10 millions eggs, or 827,000 dozen eggs to offset short supply in the US, according to the USDA. So far, they are tariff free. The US produces an average of 90 billion eggs annually, according to the American Egg Board. This year the Easter and Passover holidays fall later, in mid-April, which means more time for egg supply to catch up to holiday demand. 'People are likely to buy eggs no matter the cost because it's an Easter tradition. So right now consumers may be saving their egg money for another week or two,' said Bergquist. But that doesn't mean consumers will find a deal then. The holidays also fall during the spring migration, and wild birds are the biggest spreaders of the virus to egg laying flocks.
