French Egg Producers Smash 300,000 Eggs and Demand Government Action to Raise Prices

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Published : August 10th, 2013
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Category : Market Analysis

Farmers in France are on an egg-smashing rampage in protest of low prices.

Farmers in northwest France have vowed to escalate an egg-smashing rampage they began this week in protest at low prices and rising production across the EU.

The protesters say a 2012 European directive, which obliges egg producers to improve the wellbeing of hens by increasing the size of their cages, has forced them to invest millions of euros to cover the upgrade.

On Tuesday night masked members of the informal collective vented their frustration by dumping 100,000 eggs – about 5 per cent of their output – from the backs of vehicles in the small Brittany town of Ploumagoar.

A day later, they descended on Carhaix. On Thursday, it was the turn of Morlaix, where they left 100,000 smashed eggs outside the tax office. Residents were quick to complain about the smell.

The producers have called on the government to help co-ordinate a 5 per cent reduction in the country’s production, and to designate a special site where eggs can be destroyed.

On Friday, Sébastien Salliou, a local producer, said that prices had sunk so low that he was now selling 100 eggs at €4.50, even though his break-even price was €7. He also said that the European directive had forced him to spend about €2m on infrastructure adjustments for his business of 100,000 hens.
Collective Insanity

The farmers want the government to "do something" such as put a quota on eggs or create a "special site where eggs can be destroyed".

If that is not bureaucratic insanity, what is?

Rather than receive €4.50 for 100 eggs, the farmers would rather receive nothing. Actually, the farmers should be fined for cleanup costs so they should receive less than nothing for smashing their production in public places, creating a smelly mess in the process.

I have a simple solution.

If you do not like the price, don't produce the eggs. Selling eggs for €4.50 when it costs €7 to produce them is not smart business.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. He writes a global economics blog which has commentary 5-7 times a week. He also writes for the Daily Reckoning, Whiskey & Gunpowder, and has over 80 magazine and book cover credits. Visit http://www.sitkapacific.com
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The only true free market is the Black market. Everything else is controlled somehow to benefit the chosen few. You want a free market keep the governments nose out of your transactions, they will find someway to get their hand in there to skim off the top. Taxes,fees,Subsides,copyright laws, patent laws.etc. All bull$hit to control the "Free market".
Freedom is slavery.
War is peace.
Truth is treason.

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"The only true free market is the Black market."

Not true at all. The black market and its attendant high prices exists because a free market doesn't exist. Black market prices are higher than the controlled market. However goods that aren't available in the controlled market are often available on the black market. The controlled market indirectly increases black market prices by limiting profits for the sellers in the controlled market.

An example: A few days ago, a person from Seattle stated, to a group I was part of, that pot was $160/ounce now that Washington state had legalized recreational usage. Compare that price to those on the black market in states where the use and sales is illegal. You will find the black market prices run 2-2.5X higher.

Furthermore in most places in the world, if you are caught buying or selling on the black market, there are substantial legal penalties. If legal penalties exist for participating in this market, it can't be free.

The only freedom that exists in a black market is the freedom to buy goods and services that are illegal, restricted or withdrawn from normal sales venues at highly inflated prices. That is a pretty restricted definition of a free market.

In the US, the closest you can get to a free market is cash. Cash is king. With cash, you can dicker on price. Cash leaves no paper trail.
"This note is legal tender for all debts, public and private." The problem, of course, is cash controls enforced by government through the banking system. Ergo part of the reason for the push to have everyone use credit/debit cards.

The only markets I've observed that lean towards free are farmer's markets and flea markets. And again, cash is king in those markets.
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"Everything else is controlled somehow to benefit the chosen few."

Not so. It is controlled to maximize the tax revenue stream. With 47 million on SNAP, millions on SS disability, and a myriad of other so-called entitlement programs, this controlled market, and its attendant skim, benefits the non-productive sector and secures their votes.

In fact, it benefits the majority. Highways, AMTRAK, airports, harbors and massive infrastructure are paid for out of general revenue funds obtained by taxation. No monies exist in any of the trust accounts, just T-bonds aka IOUs.
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"... copyright laws, patent laws, ..."
Your Libertarian slip is showing. I have mixed feelings about intellectual property.
On one side, why should someone else benefit financially on my R&D?
Why should someone else be able to take my book, reprint it and sell it for their own profit?

BUT, the Constitution states, "... for limited Times to Authors and Inventors the exclusive Right ..."
Just my opinion, but 7 years for patents and 17 years for copyrights is quite adequate.

"Taxes,fees,Subsides ..."
Why should anyone obtain benefits from government without paying a user fee to cover the cost of distribution of said benefit? Do you advocate no taxes or subsides on one hand but demand a free-be (national defense as one example) on the other? Isn't that just a subsidy? Who pays?

Nothing is free beyond the air we breathe. Except for air, everything on the bottom tier of "Maslow's Hierarchy of Needs" carries a cost.

The problem is free-be's. If you didn't earn it, you aren't entitled to it.
I'm all for phasing out all taxes and subsidies. All, including my SS retirement check. Repeal the XVIth, XVIIth and sec.4 of the XIVth Amendments. Repeal the Federal Reserve Act. Repeal the ACPPA act. Eliminate 98% of government and the employees. NOT GONNA HAPPEN!!

Don't feed the bears. It habituates them to hand-outs.
Once habituated, if you then refuse to feed them, they will attack, maul you and take what they feel is rightfully theirs.
Amazing isn't it. A C+ graduate working for the state or national parks system can figure this out, but politicians can't.
Do you have any idea how this turns out?
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Just watch the French farmers. They are the movie trailer for the movie coming to a theater near you. Well, truth be told, we will all be in that movie. Sooner or later, nature always outs itself with a violent recoil.

Everything is connected to everything.
Everything has to go somewhere.
There ain't no such thing as a free lunch. TANSTAAFL
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I understand your anger, but your argument needs to be cleaned up a bunch.

Each of us chose our path. Everyone needs to understand, our individual life experience is the direct result of our own choices. Rules change all the time in a dynamic system, ergo your failure to adapt to that change is your fault. Even a squirrel knows enough to pack away nuts for the coming lean winter. The dog buries the bone. I find it most curious that modern US homes lack a pantry. And DHS recommends every family stocks several days worth of critical supplies in case of a disaster, yet few listen and even fewer comply.

We are living in an Orwellian dystopia. It is gonna be a hard landing so make sure your seats and tray tables are in the upright and locked position. Put your head between your knees and kiss your privileged patooty good-bye. The cold winds of long past-due debts for the privilege of American Exceptionalism are fast approaching. It was a good run, but Ragnarok is almost upon us. Bundle up or you will catch your death of cold.

And to think that I am an optimist. Change always introduces new opportunities. Each just needs to understand, that isn't a hot-tub you are in.
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"... the European directive had forced him to spend about €2m on infrastructure adjustments for his business of 100,000 hens."
That is 20 Euros per chicken. Ain't democratic agricultural production in Europe just grand?

What you Norte Americaners best understand is the majority in NA are of European decent and subject to the same mass hysteria/hypnosis.
So ... coming to a farm near you sooner that you think.
You didn't think all those government-backed Ag loans, subsidies and programs came without bureaucratic strings attached, did you? The farmer doesn't really own the crop they produce. They really don't own the farm either.

Count me among those who understands the anger rising amongst the ag producers. Before you ridicule farmers, play in the game they've been forced to play and find out how ridiculous communitarianism is when it comes to production of tangibles. There is no opting out for the farmers other than to quit producing completely. Damn few have the courage/foolishness/assets to play "Atlas Shrugged".



I rated this as a 2. Your entire "Collective Insanity" section demonstrated just how little you understand about the Agriculture sector and how the bureaucratic/communitarian rabble has seized control by manipulating the Ag markets to artificially hold food prices down. Remember that "Arab Spring" event that was directly tied to food costs? If a government lets food prices rise too much, the natives will go on the warpath. There are plenty of foreign countries that will export food to the US to keep our food budget far lower than it ought to be in a free market. NAFTA and the plethora of other trade agreements ring a bell? Why do you suppose there is so much US government involvement in certain ag products that are heavily exported? Why can I buy Georgia peanuts cheaper overseas than in the US? Why is US sugar so high? Why, why, why? Because the government and communitarians, in a public/private partnership, seized control of agricultural production and marketing for our own good. It is easy to starve producers into compliance.

Perhaps that 2 was a bit generous.

To paraphrase Marie Antoinette, "Let the bureaucrats and communitarians eat cake."
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i am reminded of a quote by Real Couette: "The farmer gets up at 3 in the morning to milk his cows. The banker gets up at 9:00 to milk the farmer." Of course, you may want to substitute the word bureaucrat for banker to bring matters up to date, but there is a good deal of truth to it nevertheless.

Comparatively speaking, the egg farmers may have gotten off easily. In order to gain acceptance into the EU, Portugal was required to destroy a sizeable portion of their fishing fleet.
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"... Portugal was required to destroy a sizeable portion of their fishing fleet. "

Excellent point there vox. Supposedly the Portuguese fishing fleet was too efficient and the fishermen comprise a disproportionate percentage of the Portugal's general population compared to other countries in the EU.

The EU is an example of a classic communitarian experiment entering its ridiculous phase. Level the playing field so even the mediocre can join the middle class with equal standing. Tis just socialism with community input by recognized community planners.
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Latest comment posted for this article
"The only true free market is the Black market." Not true at all. The black market and its attendant high prices exists because a free market doesn't exist. Black market prices are higher than the controlled market. However goods that aren't available i  Read more
overtheedge - 8/11/2013 at 6:57 PM GMT
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