Remember Eggflation? Prices Are Plummeting Right Now, New Stat Shows
Portfolio Pulse from Surbhi Jain
Cal-Maine Foods Inc (NASDAQ:CALM), the largest U.S. egg producer, reported a significant drop in egg prices in their Q2 2024 results, with a 49.4% decrease year-over-year. The average selling price for conventional eggs was $1.458 per dozen, down from $2.883 in Q2 2023. This decline in egg prices has led to a 95% reduction in Cal-Maine's operating income, despite a slight increase in total volumes sold. The company remains focused on increasing production of specialty eggs to meet high demand.
January 04, 2024 | 7:04 pm
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Cal-Maine Foods Inc reported a drastic decrease in egg prices and a 95% drop in operating income in Q2 2024. The company is increasing focus on specialty egg production due to high demand.
The significant drop in egg prices directly impacts Cal-Maine's revenue and profitability, as evidenced by the 95% decrease in operating income. The short-term impact is likely negative due to the substantial year-over-year price decline. However, the company's strategic shift towards specialty egg production could mitigate some of the negative effects if demand for these products remains strong.
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