- The influenza pandema has proven a great profit for Cal-Maine, the largest egg producer in the United States Its profits increased during the first three months of 2025 to $ 508 million, or more than three times the level a year ago – even when the herds of bird flu and tens of millions that were collected in US Agriculture Ministry payments were killed.
Although the White House says the prices of eggs belong to Earth, the largest egg producer in the country is still profitable.
Cal-Maine, the largest egg producer in America in both revenues and the size of the herd, witnessed its profits three times in the first three months of the year, according to the company’s quarterly financial company. a report. The company sold eggs of $ 1.4 billion and received a profit worth $ 508 million, and more than three and a half times more than $ 146 million of profits that were informed of it during the same period in 2024.
“The high net sales were mainly driven by an increase in the net net price of eggs from the eggs of the coincidence,” Cal Min said, describing the prices as “a direct result of the decrease in the width of the eggs of the dandruff throughout the industry due to (bird flu) during a period of seasonal peak on eggs and egg products.” The company said that high sales played a role as well, as it did low production costs. The cost of feeding chicken decreased, for example, approximately 10 % for a quarter.
Cal Min, which produces approximately five eggs of the country, has lost about 4 % of its herd in recent years for influenza outbreaks. But the company’s treasures have swamped since the influenza epidemic began. In the first three months of 2021, sales of $ 359 million. Four years later, her revenues were subjected to quadruple-although Cal Men sold about 20 % of eggs.
At the level of the country, and The price of eggs It set a record in February, and it is expected to rise as much 40 % more This year, according to the US Department of Agriculture.
“It is crazy,” said Thomas Gremelion, director of food policy at the Consumer Federation in America. luck. “You may think that the increase in the cost of production for any good will eat in the profits of the product, and instead we are witnessing the increase in profits with orders in size … This is very surprising that they are able to benefit from the situation in the way they have.”
Cal Maine did not respond wealth Request to comment.
The profits drew the attention of the Ministry of Justice, which Opening the investigation In high -sky egg prices in March. The company said that Cal Min is cooperating with the request of the Ministry of Justice to obtain information.
At the same time, the profits were rising, Kal Maine was taking tens of millions from the US Department of Agriculture. The company has received $ 42 million of bird flu compensation, according to L. Usaspending.gov.
Federal regulations of farmers require killing all birds in a herd if the bird flu is discovered. The US Department of Agriculture compensation program It pays a specific price for each killing bird, with some added compensation for cleaning and disinfection.
Cal Min temporarily closed the Texas facility last year, Killing nearly 2 million chicken. In the previous year, a facility in Kansas was closed with 684,000 chickens for bird flu.
“It is clear that the discovery of bird flu was not destroy luck. “At this stage, we pay a lot of money on (the US Department of Agriculture Payment Program), and we see that these large and truly powerful companies are getting more powerful and more powerful.”
The President of the American Board of whites said in a statement that the US Department of Agriculture compensation program “does not approach the coverage of financial losses when the egg farm must separate from its herds and rebuild its business, in cases, this means the difference between recovery or leaving the work.”
“It is important to remember that eggs are sold in markets like other agricultural commodities, and that wholesale prices are driven by supply and demand,” the statement said. “We have lost more than 125 million chicken eggs for bird flu, and more than 30 million of those birds this year, alone.”
Tax motivations gave $ 1.25 billion of influenza compensation payments until November last year, According to the federal registry. In February, the Trump administration announced an additional billion dollars to combat bird flu, including intensifying biological security measures and increasing the money paid when the infected herds were killed.
This story was originally shown on Fortune.com
https://fortune.com/img-assets/wp-content/uploads/2025/04/GettyImages-2207856561-e1744230087553.jpg?resize=1200,600
Source link