Tuesday, November 16, 2010

Egg Prices: the Spread Narrows

From a recent  Farm Policy:
The release added that, “Perhaps indicating the weakness in demand for cage free and organic free range eggs, the U.S. Department of Agriculture reports that retail organic free range eggs are being advertised this week at $2.64 per dozen, 33% less than one year ago ($4.00); cage free eggs are being advertised at $2.50 per dozen, down 14% from one year ago ($2.90); and traditional egg retail prices are up 8% compared to one year ago ($1.02).
The spreads are narrowing.  In hard times, it's hard to expect people to spend more for food.  That's particularly serious because switching to organic grain production, or cage free henhouses, requires a big investment in time for organic (3 years I think) or money for cage free. So you're asking farmers to make an investment, hoping the returns will not only cover their out-of-pocket costs when they get certified as organic or cage free, but will compensate them for the added risk.  

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