Eierpreise gegen Cal-Maine’s Dividenden; Eierproduktion gegen Eierpreise
Von DullAd3393
Eierpreise gegen Cal-Maine’s Dividenden; Eierproduktion gegen Eierpreise
Von DullAd3393
5 Kommentare
This is taken from Johnny Harris‘ latest youtube videos where he explains the price of eggs and the reason behind it skyrocketing.
Apparently, Cal-Maine, the largest producer of eggs in US by far has been paying record dividends and the blame of high prices is put on Bird Flu. Second graph shows that although Bird Flu was real, it hardly had an impact on number of eggs produced.
The higher price you pay goes directly to shareholders.
Any idea what the lagged correlation on this is?
factory farms doing disgusting things, color me surprised
Cal-Maine can’t set prices unilaterally. They control 15-20% of the market; which, while a lot, means that they still have to compete against other egg producers. They can’t wake up one day and decide to raise prices merely for the sake of increasing shareholder returns. The price of eggs is determined by supply and demand in the larger egg market. And one consequence of a systematic drop in supply meeting an inelastic demand for eggs is that prices go way up, and the companies that do still have supply reap the rewards. That also encourages other producers to respond to the price signal and increase supply wherever they can.
Cal-Maine also authorized a $500M stock buyback program in 2025.