While July’s Consumer Price Index (CPI) revealed overall inflation seems to be cooling, it did however reveal the price of eggs continues to inflate, up 5.5% month-over-month and almost 20% compared to last year. What is driving these cost increases and will there ever be relief?
Pete & Gerry’s CEO Tom Flocco joins Wealth! to give insight into what is causing the rising price of eggs.
Flocco says that the 19% rise comes from "a supply-driven price spike." He noted that in 2022, a spike was driven by the avian flu wreaking havoc on the industry, specifically those that are caged and caged-free producers.
For his company, the "biggest cost inputs that affect our pricing is going to be grain. I mean, it’s the single biggest cost input to a dozen eggs. It can be as much as 50% of the cost of a dozen eggs, because it’s not just corn and soybean. It’s also a lot of nutrients that we put in there to make sure the birds are healthy, that the eggs are the best tasting eggs they can get."
He follows that up with: " There’s also a transportation component of it. We are on 200 plus family farms that we contract with. We don’t own any of them. We contract with those farmers. We spread from Oklahoma to Maine. All the way up to Wisconsin and all the way east. And so we have to truck those eggs to our three processing facilities so that they can be sorted, graded, packed, and then sent out to our retail partners."
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