USDA to buy $11.7 million of shell eggs to ease surplus

WASHINGTON, Aug. 25, 2016 – USDA is planning to buy up $11.7 million worth of shell eggs and egg products to ease a surplus as farmers and egg processors try to cope with falling prices.

A USDA spokeswoman said the products will go to various food nutrition assistance programs, and to charitable institutions. The actual dollar amount spent will depend on bid prices received after a formal solicitation is published, the department’s Agriculture Marketing Service says on its website.

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Chad Gregory, president and chief executive officer of the United Egg Producers, was not available for comment on Thursday. However, he was quoted in Urner Barry’s Foodmarket.com report as saying the purchase comes at a time when egg farmers are “experiencing some of the lowest prices in years.”

USDA on Tuesday announced it will spend an estimated $20 million to take about 11 million pounds of cheese off the market and reduce a surplus that has helped keep dairy prices low.

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