Egg prices led Dollar Tree to remove cartons from shelves: Reports

The high cost of eggs led Dollar Tree to remove the food from its shelves.

Dollar Tree has stopped selling eggs, the retail and grocery chain confirmed to multiple media outlets this week – pointing to continuing high egg prices.

In recent months, the price of eggs has skyrocketed to record highs. Costs have started to fall for consumers, with a 6.7% drop in February, but egg prices have still risen 55% over the past year. In February, producers saw a 38% annual increase in the cost of eggs, according to CNN.

Shoppers saw an average cost of $4.21 per carton for Grade A eggs in February, down from $4.82 in January, according to the Bureau of Labor Statistics. In contrast, Grade A eggs cost about $2 a carton in February 2022.

Dollar Tree – which advertises a main price of $1.25 for most of its products, as well as some $3 and $5 items – told CNN it cannot afford to sell eggs at those prices. .

“The cost of eggs is very high right now,” Dollar Tree spokesman Randy Guiler said. Guiler added that Dollar Tree will bring back eggs when “costs are more in line with historical levels.”

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A dollar tree The spokesperson told Reuters, which first reported the news, that the chain does not plan to return the eggs to Dollar Tree stores until the fall.

Unlike Dollar Tree, Family Dollar stores, which are also owned by Dollar Tree, Inc., still have eggs and will continue to sell them, Reuters and CNN reported.

Dollar Tree did not immediately return a request for comment Saturday from USA TODAY.

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Why has the price of eggs soared in recent months?

The increase in egg prices observed in recent months is due in particular to the increase in demand, high production costs and the avian flu epidemic.

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Earlier this year, lawmakers and farmer-led advocacy group Farm Action also called for an investigation into possible price hikes by producers – pointing to record profits posted by Cal-Maine Foods, the largest US producer. of eggs.

Headline inflation fell in February

Wholesale price increases, which affect how much retailers pay when buying products from manufacturers, slowed significantly last month.

From January to February, the government producer price index fell 0.1%, compared to a 0.3% increase from December to January. Compared to a year ago, wholesale prices rose 4.6%, down sharply from the annual increase of 5.7% in January.

A key driver of the slowdown in wholesale price inflation in February was the sharp drop in wholesale egg prices, which fell 36.1% in February.

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Meanwhile, consumer prices rose 6% from a year earlier, down from 6.4% in January and a 40-year high of 9.1% in June, according to the House Price Index. consumption of the Ministry of Labour. Overall, grocery prices continue to rise, but more slowly, rising 0.3% from January and 10.2% over the past year.

Contributor: Paul Davidson, USA TODAY; The Associated Press.

USA Today

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
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