Saturday, February 2, 2008

The Media Scrambles Egg Cost Facts

eggs corn costs oil gas inflation 2007 2008We've read dozens of news stories over the past months blaming the increased use of corn for ethanol for the increased cost of food products, especially the higher cost of eggs. But the media has its facts all scrambled.

What every story has carefully omitted is, "How much corn is used to produce a dozen eggs?" The answer is, not much.

For a dozen eggs, about 4 pounds of corn is used for feed. Remembering that a $4.00 bushel of corn contains a whopping 56 pounds, that's about 28 cents per dozen.

The recent run up in egg costs of $1.00 to $2.00 per dozen can not be justified on the minor increase in corn cost to egg production. Energy marketing, labor costs and increased demand all play much bigger roles in the recent food cost increases.

In this case, the general media has laid a giant egg with the facts.

Source: USDA Report (Page 60, MSWord .doc)

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