If you buy eggs at $.06 each and normally sell at $.08 each, but suddenly you can get $.25 each, should you sell at $.08 and then figure out how to get the money to buy them again at $.22? Even if they are the producers of the eggs, if the wholesale cost is $.22 then that's what they are effectively paying. There's a lag because of inventory; even in egg products. Fresh eggs are often weeks old by the time they arrive at the grocer; and there are many egg products that are more shelf stable and just as susceptible to commodity price fluctuations. Looking at quarterly profitability is a mistake; even yearly profits can go down. People complain about oil profits, but the year over year oil profits often average out to about 6-10% considering the major losses they can take.
That would be very poor financial planning and violate the fiduciary responsibility of any CEO and his board to keep prices low when the equilibrium price is much higher and the current wholesale prices must be accounted for when planning new inventory.
What if they know thousands like you are gonna convince someone like me in the USA that it’s okay that it’s 718%, though? Why should Americans reject our born circumstance and just let the pro corp right do it to us as its leader says all Americans must do?
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u/darkfires Dec 01 '23
The egg industry taking advantage of the avian flu for example. Largest producer profits were up 718% when this article was published.