Dollar General To Keep Selling Caged Eggs

[Alpha8472]

Dollar General reverses course and decides to keep selling eggs from caged hens. People are not willing to pay more.

https://www.supermarketnews.com/retail- ... -free-eggs

[storewanderer]

Dollar General reverses course and decides to keep selling eggs from caged hens. People are not willing to pay more.

https://www.supermarketnews.com/retail- ... -free-eggs

There will be states where they have no choice.

They have a variety of vendors depending on region that they get these products from and it probably wasn't logical to commit to cage free eggs given their logistics situation.

Meanwhile in Nor Cal, the pioneer home of cage free eggs a large dozen of Lucerne Eggs at Safeway to this day costs 4.99. Slight break on 18 pack to 6.99.

Also in the case of Dollar General many of their customers likely have their own chickens so if the price is too high more are likely to go that route.

[storewanderer]

Also Wal Mart and Kroger backed out of their cage free eggs by 2026 commitment back in 2022.

https://www.wattagnet.com/egg/cage-free ... ?v=preview

[HCal]

If Aldi in Socal can sell cage-free eggs for $2 a dozen, clearly "they are too expensive" is just an excuse.

I think companies just wanted the good publicity of making the pledges without having to follow through.

But I do think that sooner or later market forces will phase out caged eggs, just like it did with rBST milk. It might just take longer than expected due to this bout of inflation.

[storewanderer]

If Aldi in Socal can sell cage-free eggs for $2 a dozen, clearly "they are too expensive" is just an excuse.

I think companies just wanted the good publicity of making the pledges without having to follow through.

But I do think that sooner or later market forces will phase out caged eggs, just like it did with rBST milk. It might just take longer than expected due to this bout of inflation.

I assume Aldi is selling near cost. And various competitors near Aldi Stores notably Wal Mart and Winco probably match their price.

Then how does Safeway the largest operator in the state in NorCal have to charge 4.99 for their cheapest dozen of Lucerne Large Cage Free Eggs?

One may also ask why the NorCal Safeway Division sells those same eggs from the same warehouse in CA up here in Reno but transported hundreds of miles further to get here at 2.99 (to be competitive with other parties in the market on eggs, one of the only everyday low prices left from the price cut program they implemented in Reno a few years ago).

Consumers do not care about cage free eggs. Complete indifference. In NV for quite some time those have sold alongside standard eggs. They cost more and do not sell. They only sell if they are the only choice. Supposedly on January 1 all eggs here have to be cage free.

I got a dozen large eggs at Winco around Thanksgiving (not cage free also no labeling of the ssfes or whatever either which I thought all eggs here needed) for 1.68. Last night that same dozen of eggs was 2.98 (still not cage free but assume they are getting us ready for the price hike).

[HCal]

Then how does Safeway the largest operator in the state in NorCal have to charge 4.99 for their cheapest dozen of Lucerne Large Cage Free Eggs?

They don't have to, but they figure they can. Plenty of stores in NorCal are selling eggs a lot cheaper than 4.99/doz, so this has nothing to do with the law. It's just Safeway being Safeway. They have a large market share in NorCal, so they can get away with it because many customers shop there out of convenience or habit.

Consumers do not care about cage free eggs. Complete indifference. In NV for quite some time those have sold alongside standard eggs. They cost more and do not sell. They only sell if they are the only choice. Supposedly on January 1 all eggs here have to be cage free.

Consumers in California voted to mandate cage free eggs by a large margin, so clearly they do care. I don't know about Nevada, but even if it was passed by the legislature rather than the voters, that kind of thing can't pass without public support.

In SoCal, egg prices briefly spiked after the law took effect, but then quickly returned to normal. I imagine the same thing will happen in Nevada.

[storewanderer]

Then how does Safeway the largest operator in the state in NorCal have to charge 4.99 for their cheapest dozen of Lucerne Large Cage Free Eggs?

They don't have to, but they figure they can. Plenty of stores in NorCal are selling eggs a lot cheaper than 4.99/doz, so this has nothing to do with the law. It's just Safeway being Safeway. They have a large market share in NorCal, so they can get away with it because many customers shop there out of convenience or habit.

Consumers do not care about cage free eggs. Complete indifference. In NV for quite some time those have sold alongside standard eggs. They cost more and do not sell. They only sell if they are the only choice. Supposedly on January 1 all eggs here have to be cage free.

Consumers in California voted to mandate cage free eggs by a large margin, so clearly they do care. I don't know about Nevada, but even if it was passed by the legislature rather than the voters, that kind of thing can't pass without public support.

In SoCal, egg prices briefly spiked after the law took effect, but then quickly returned to normal. I imagine the same thing will happen in Nevada.

What are those stores in NorCal with the lower egg pricing? Maybe Save Mart or Raleys at 3.98 instead of 4.99? The few Wal Mart Supercenters or Wincos doing 2.98 maybe? Trader Joe's of course has a lower price, I think it is 2.89.

This UC Davis research seems to sort of deliver very different information than all of your points. CA egg prices are way above national average. I never saw 7.50/dozen though as they mention, definitely did not see that at NorCal Safeway (think they were 4.99 earlier in 2023 too).

https://asmith.ucdavis.edu/news/eggs

Utah has the cage free egg rule coming up in 2025 - but out in Eastern Nevada the stores supplied through Utah are selling all cage free eggs and the going rate at Smiths and most of the Associated Food Stores-supplied independents, as well as Wal Mart, is 2.98 per dozen for cage free large dozen eggs store brand.

What surprises me is how California consumers supposedly support something like this cage free egg rule then as a result of said rule the prices spike way up, then over the long term even after the market adjusts and cost on this product falls, the California consumer continues to accept being ripped off. They accept 4.99 for a dozen eggs at the largest chain grocer, keep placing blame on a cage free egg law, yet competitors in nearby state (Utah) with same law the going rate is 2.98 per dozen.

Also I have heard Aldi is selling eggs at cost in SoCal in an effort to draw customers in. They supposedly can't sell below cost... but can absolutely sell at cost... do you know if those eggs come from CA or come in from out of state?