The State of California is being sued over its egg production laws.
As a local cafe owner, Kirk Sowell has dealt with increasing food prices over the years, but he says he started noticing the cost of eggs dropping again about a month ago.
“Where they would be $160 a case before, and now they are in the mid-$50s,” said Sowell, Frankie & Lola’s Front Street Café owner.
According to the Consumer Price Index, the average nationwide price for a dozen eggs back in March was $6.23. By May, that price had fallen to $4.55.
Despite the decrease, court documents filed on Wednesday by the Department of Justice claim California's animal cruelty laws have significantly impacted the national egg market.
The DOJ is attempting to challenge laws that mandate increased space for egg-laying hens, stating in the complaint that "California has effectively prevented farmers across the country from using a number of agricultural production methods which were in widespread use and which helped keep eggs affordable.”
The agency argues that California is forcing out-of-state egg producers to adhere to stricter regulations, resulting in reduced supply and higher prices nationwide.
Federal officials say these laws conflict with the Egg Products Inspection Act, which sets uniform rules for egg production and blocks states from adding extra regulations.
Governor Gavin Newsom fired back at the lawsuit, calling out President Donald Trump, stating that the president is “blaming California for literally everything.”
As the owner of Buttercup Bakery & Café in downtown Morro Bay, Carrie Raya says she’s also seen a shift in egg prices.
“An average of maybe $250 to $300 because the price fluctuated anyway. It went from that price to $700 in a matter of a week,” Raya said.
She says the initial increase was tough to deal with.
“That alone, where we go through so many eggs, and for that price to double overnight like it did. It was a huge deal,” Raya said.
For Sowell, the increase forced him to increase menu prices at Frankie & Lola’s. While he attributes the initial increase in egg prices to the avian flu outbreak, the DOJ’s complaint doesn’t mention the disease.
Despite egg prices dropping, Sowell isn’t planning to make changes, saying the cost is still an everyday concern.
“I check the egg prices every day because today it might be one price and the next day it could be $10 more a case and the volatility makes it scary for small business people because they don’t want to raise the prices for their customers, but they also want to survive,” Sowell said.
In a statement, Assistant Attorney General Brett Shumate said, “Bureaucratic red tape and unnecessary regulations implemented by the State of California have made the cost of everyday goods, like eggs, less affordable for Americans.”
