An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Thursday, January 12, 2023
Eggs up 64%
Oh no! …. “Inflation!”…. Fed better go up the 0.5% now!
Ok, there are somewhat higher energy costs, but most of the production is in one or two US states! So this is profiteering, albeit partly in the face of higher international demand. Canadian-style demand management is the way to go, IMO (but then the USFDA would have to reduce its subsidies...).
However, as Canada typically targets the mid-range equivalent of the US price structure as a benchmark for prices and egg quota (to avoid international trade challenges), Canadian prices may be forced up in response.
Other than in Michigan, it does not look like winter is likely to have much effect on production costs in the US -- hell slightly cooler weather could reduce costs in most producing states!:
Ok, there are somewhat higher energy costs, but most of the production is in one or two US states! So this is profiteering, albeit partly in the face of higher international demand. Canadian-style demand management is the way to go, IMO (but then the USFDA would have to reduce its subsidies...).
ReplyDeleteHowever, as Canada typically targets the mid-range equivalent of the US price structure as a benchmark for prices and egg quota (to avoid international trade challenges), Canadian prices may be forced up in response.
http://fpcc-cpac.gc.ca/index.php/en-GB/thesupplymanagement/thenationalagencies/2014-08-13-15-51-37
Other than in Michigan, it does not look like winter is likely to have much effect on production costs in the US -- hell slightly cooler weather could reduce costs in most producing states!:
ReplyDeletehttps://www.wattagnet.com/articles/45295-which-states-produce-the-most-eggs