Monday, December 21, 2015

Big vs. small in the egg business

Big producers continue to dominate the Ontario egg industry, just as they have for at least 40 years since national supply management began.

The 38 largest hold 49 per cent market share.

The 112 smallest (with less than 10,000 hens each) hold eight per cent market share.

There are 331 quota holders.

Some people control more than one quota.

The four largest quotas combined total 1,311,797 birds.

With the going price of egg quota at $300 per hen now, those four quotas would be worth about $394 million.

I say it's not fair that poor people have to pay inflated Canadian prices for eggs - because of import tariffs to protect supply management - so four quota holders can become so filthy rich.

As for size, there are some egg farms in Iowa with five million hens. Ontario’s total count is 8,458,059 birds.