(Bloomberg) -- Egg prices are rising and more food inflation could be forthcoming amid continuing supply chain volatility in 2022, according to Cal-Maine Foods Inc., the biggest U.S. producer.
The company, which accounts for about a fifth of the U.S. market, said egg prices in its fiscal second quarter rose 12% from the previous year amid a recovering food service sector and supply-chain issues. Unfavorable crop weather also made corn and soy feed for chickens more expensive. Cal-Maine earnings, reported Tuesday after market close, missed analysts' expectations, sending shares down the most in over a year.
Prices for a dozen large eggs in the U.S. Midwest hit $1.64 earlier this month, according to the Department of Agriculture. That's the highest since the Covid-19 pandemic started disrupting the supply chain and raising costs. In recent years, prices have averaged closer to a dollar.
“In spite of current and expected inflationary headwinds, we remain focused on what we can control by managing our costs and running efficient operations,” Dolph Baker, chairman and chief executive officer of Cal-Maine Foods.
Shares fell as much as 8.4% to $35.10 on Wednesday.
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