Biden Administration Takes Action Against Egg Price Gouging

The recent surge in egg prices in the United States can be attributed to the widespread outbreak of the H5N1 bird flu, affecting over 90 million poultry birds and spreading to dairy cattle across multiple states since 2022. This strain of bird flu is highly contagious, posing a significant risk to hens and leading to the killing of millions of poultry birds to prevent further spread.

The root cause of these recurring outbreaks lies in the structure of the agriculture industry, characterized by intense market concentration. A few major players dominate the egg industry, leaving little room for resilience in the face of disease outbreaks. Factory farms, housing hundreds of thousands of genetically similar animals in close quarters, create ideal conditions for diseases to spread rapidly.

As a result, consumers are experiencing sharp price hikes for eggs, with prices nearly doubling since early 2020. The industry's response to outbreaks often involves price manipulation, with companies like Cal-Maine Foods significantly increasing profits by raising prices beyond necessary levels.

To address these issues, calls have been made for stricter enforcement of antitrust laws and regulations to prevent price gouging and ensure a more stable and fair food supply chain. Efforts by the Biden administration to tackle industry consolidation are a step in the right direction, but further legislative action, such as the Price Gouging Prevention Act, may be needed to protect consumers and promote a more sustainable food system.

In conclusion, the challenges faced by the US food system highlight the urgent need for reforms to address market concentration, prevent price manipulation, and safeguard both animal welfare and consumer interests. By implementing stronger regulatory measures and promoting a more diversified and resilient agricultural sector, the country can work towards a more stable and equitable food supply chain.