Part of My Plan for Global Domination ...

... the Canton Repository might have figured it out first:

Egg prices break new ground
BY SAIMI ROTE BERGMANN and JENNIFER MASTROIANNI
REPOSITORY FOOD WRITERS

On a recent errand run, Joe Galizio felt twice-gouged.

“A week ago, I went to get gas and stopped to get eggs,” said Galizio of North Canton. “I called my wife on the cell phone and said, ‘Geez, it just cost me $3.09 for gas, and now the price of eggs is $2.24.’

She said, ‘What?’

I said, ‘Yep,’ and she said to just get one dozen instead of two.”

The hefty price convinced Margaret Galizio to cut back on the number of pizzelles she’ll make for Christmas. Just a year ago, eggs cost about 79 cents a dozen. This week, local stores are charging $2.25 to $2.49.

“Prices have been going up,” said Jim Chakeres, executive vice president of the Ohio Poultry Association. “It’s not one thing, it’s a list of many.”

MANY REASONS

Contributing factors include fewer laying hens in the country, as well as increases in costs for fuel, labor, employee benefits and feed stuffs, Chakeres said.

David Kress of Kress IGA Foodliner in Canton said egg prices began rising the beginning of November but stabilized in the past week.

Kress said two things account for the price hike — increasing production costs and the holidays.

“The cost of feed, transportation and packaging have all gone up. Chickens eat corn and soy, and both are being used to make ethanol fuel. Styrofoam packaging is a petroleum derivative. Transportation to bring it to the store uses more petroleum.”

Kress said egg prices also spike during this season because of high demand. Eggs are perishable and can’t be stockpiled. “Historically prices do go up during the holidays. In January and February, you’ll see them go down a bit, then another swing up at Easter.”

EXPORTS TO BLAME?

Kress believes the increase in egg prices began two years ago when the U.S. started selling eggs to China.

“Two years ago (eggs) were 69 cents a dozen, then it went to 99, then $1.39, now up over $2. The recent increase has been because of fuel, but the past was because of selling to China.”

Carol Heiser, egg buyer for the Acme Fresh Market chain, says exporting to China has stopped but now there is a shortage of chickens.

“Now they’re saying we have 38 million less birds than a year ago due to animal rights and cracking down on things like how many chickens they can have per cage,” Heiser said. “Usually we see a spike (in demand) at the holidays, then it drops. We’re not seeing the drop — it stayed high.”

Restaurants take hit

Hardest hit businesses include bakeries and restaurants specializing in breakfast.

“We do a high volume of breakfast, that’s our biggest trade,” said Kenny Billman, a partner in Lindsey’s Restaurant in Canton, where customers can get two eggs, two strips of bacon and toast for $2.30.

Billman said he doesn’t plan to pass the increase on to customers. At least not yet.

“We’ll continue to eat that cost,” Billman said. “We’ll ride it out for a good couple months before we actually decide what we’ll do.”

Despite the increases, eggs are still a deal, contends the head of the Ohio Poultry Association.

“A dozen large eggs weigh about a pound and a half,” Chakeres said. “Even at $2, they are one of most affordable sources of protein in grocery stores. And if you look at where prices were 10 years ago and where they were a few months ago, there isn’t that big of a difference.”

http://www.cantonrep.com