Summary
Canada has avoided the severe egg shortages and soaring prices seen in the U.S. due to differences in farming practices and regulations.
While avian flu has devastated large American egg farms, Canada’s smaller farms and tightly sealed barns have limited the impact.
The U.S.’s industrialized egg industry, driven by cost efficiency, is vulnerable to supply shocks when outbreaks occur.
Canada’s supply management system ensures stable production and restricts imports, keeping farms smaller. Meanwhile, U.S. consumers face continued egg price surcharges and supply pressures.
Another major factor is that Canada raises more of their chickens indoors due to how cold it gets, significantly decreasing their risk of exposure to avian flu.
The US has way more free-range chickens, and free-range chickens are most at risk.
It’s worth noting that supply management is a type of central planning where we centrally determine how much we’ll produce and what the price of production will be.
Individual, often small, farmers then produce those eggs and get paid this price. The price and quantities are set so that it’s sustainable for farmers to produce. Farmers have the certainty they’ll sell their product at a decent price. They aren’t at the mercy of the market putting them underwater after they’ve spent large amounts of capital to produce.
Consumers pay a generally higher price for eggs than the absolute minimum possible, but we also avoid paying much higher prices during shocks and shortages. Our farming sector isn’t consolidated by necessity of achieving the lowest price.
We do this with more than eggs.
That sounds like socialism which is bad because it’s bad. Look what happened in Canada, they didn’t pay animal and worker abusingly low prices and now they don’t have insanely high prices. Without causing these situations they are denying large parts of their population high sustained cortisol levels.
This is why we need to maintain our threats of annexation. We must provide them the stress that their government denies them.
Broiler chickens, dairy, and other poultry industries have this.
We should bring it back for crops (return of CWB)?
I think Harper sold it to the Saudis. I wouldn’t be surprised if there’s some provisions that bind Canada to not create a new board. With that said we should absolutely create a new board. Use the crisis. I guess we’ll see how much of a Keynesian Carney is. Assuming we elect him of course.
Despite the trade war, the U.S. government has one potential solution to help meet demand and keep egg prices from climbing even higher: temporarily increasing egg imports.
I think the world should tacitly embargo the USA for eggs, since Trump doesn’t care to treat any trading partner well.
I don’t think it should be tacit. It should be explicit - no eggs, no meat, no fish, no natural resource produced within the USA should be imported or exported. And if the US government won’t do that, let the rest of the world manage it.
Can’t, would increase the trade deficit for US and then Trump will rave they’re stealing and laughing at the them and use it to start new bullshit. Watch Trump’s snake parable, he (now U S) is the snake or scorpion. Helping only hurts the one who shows what they will inevitably label as weakness.
I think it would be more fun if they did it explicitly instead of tacitly.
I think we should get Elon to attach rockets to America and launch the whole place into space
driven by cost efficiency,
It’s not so cost efficient now is it?
Poor safety standards is a short term strategy.Have you seen egg producer profits lately? It’s great for them to have an opportunity to find out exactly how much consumers are willing to pay for their precious eggs. Super cost efficient, for them.
Profits <> cost efficiency.
Obviously those that have eggs good enough to sell, like small producers, make more money. But those that had to put down all their chickens are more likely to go bankrupt.
Not necessarily. The long-term / short-term focus is a red herring. Without intervention, the system drives people to focus on ever shorter term in order to compete. Because firms can fail due to competition in the short run, before any negative effects of the short term thinking of the competitor have materialized. It’s even possible to consolidate the market before “the chickens come home to roost.” And then you have the mitigating factors - once you consolidate a critical market, your problems are the society’s problem and the society will pay to resolve the issues from your short-term thinking. And then you have the ability to get out of the market before the big problems start showing up. Put all of this together and you can see that the completion for profit in a competitive market can easily drive shorter and shorter term planning without the winning players facing consequences. If it’s not profitable to focus on long term planning and the system uses profit to determine success from failure… I think we can’t expect individuals or even firms to focus on the long term.
In theory that could all sound very true.
But the investments need to pay themselves back, and setting up large agricultural production takes time to earn back the investment. So there are limits as to how short term you can invest.This is probably the lowest denominator disease, where investments become more and more irresponsible, because of lack of regulation that set a lower bar for how irresponsible you can be.
Kind of the same as with the financial crisis almost 20 years ago, that caused an economic slump for 10 years. I wouldn’t be surprised if the egg market similarly will take a decade to return to normal.
Right but if investment relies on regulation to be responsible, and removing such regulation leads to potentially higher profits… And if you’re able to collect profits on future expected returns today via asset markets… Then wouldn’t most try to get rid of such regulation? Most of those people 20 years ago made a killing following deregulation they lobbied for earlier.
And if you’re able to collect profits on future expected returns today
This is true, but it’s 99% a misunderstood perception by the buyers, they generally fail to realize that they are buying in at way higher risk.
Deregulation does not generally promote profits, even when it allows to cut cost.
Eggs are now the most common thing being seized at the Mexican border too atm.
Maybe because Canada isn’t a shithole country?
In the annals of future history, ww3 was started because of eggs.
No, Civil War 2 is eggs, WW3 is because the US tried to take over Greenland, Canada, and Panama… perhaps to get more eggs.
The US in this is the spitting stereotypical image of a man building something, and going “What’s this? Don’t need manuals. (Throws manual away)”, and then wondering why nothing fits, why some parts don’t seem to have a place to go, and some other parts are missing.
Why regulations? They serve no purpose. Why does no one import US hormone-riddled meat and heavily synthesized food products? I really wonder.
It would be nice if that was the process. Instead it’s the extraction of ever increasing profit that drives this. The big factory farms didn’t occur out of not knowing how to farm. They were created as the well established way to decrease costs per unit produced, at least initially. Then large factory farms allow consolidation of production, since they can only be built and operated by large capital, and small farmers don’t have it. Then the few owners of these farms are free to set the prices of whatever they produce as high as the market will bear. The owners now also have the leverage to get less regulation, since regulations generally increase costs.
I wonder if that’s also the reason pasture raised eggs are cheaper and more available than the other types of eggs where I live. I kid you not, the pasture raised eggs are $3-$4 less than the other types. Free range eggs are $2-$3 cheaper. There are also backyard eggs available for even cheaper.
That is also the reason why the US has to wash the eggs and chlorinate the chicken.
Eggs are so cheap here in Canada that I’m just buying them to throw them away!
