By Paul M. Valeer
There is snow on the ground again in Minnesota. We need a change, and according to Mike "Doc" Lynch, that change is coming and soon. By next week, we'll have sun and 60 plus degree temperatures. Change is (finally!) coming.
There's also change a foot in the business world in a way that will have consequences locally, nationally and in most kitchens near you: Agribusiness giant Cargill is investing $20 million to expand its Big Lake, Minn., egg processing facility. The expansion includes capabilities to pasteurize, mix and cook a number of additional egg products for foodservice and protein ingredient customers. The move will double the facility’s annual requirement for eggs from family farms in the area to 170 million. Construction begins in May, with the new capabilities expected to become operational in January 2019.
Why make the investment at Cargill? Because there's been a big change in egg prices. Since January, the wholesale price of a dozen of eggs has doubled from about a $1.05 to more than $2.10 nationally.
The rising price of eggs has knock-on effects for egg-processed foods like mayonnaise, marshmallows and pasta.
Why the spike in demand? I look at recent expansion by US (e.g., Hyvee) and foreign (e.g., Germany-based Aldi) grocers, as well as the revamp of retail stores now including groceries (e.g., Target). Whenever a new grocery opens, it needs eggs, a standard "loss-leader," to draw in customers. Cargill's watching that change in egg prices, increase in egg-selling groceries, and investing to profit from both.