Where to Find Egg Smuggling

NYC diners report paying as much as $8.00 for their breakfast combo sandwich:

For the same reason that diners switched to a chicken sandwich breakfast, egg smuggling is on the rise.

Egg Smuggling

In addition to checking for drugs at the border, now it’s eggs. U.S. Customs says that nationwide “egg interceptions” are up 36% from last year. Meanwhile, the spike is 54% at parts of the Texas border and a whopping 158% near San Diego.

At border crossings (occasionally Canada but mostly Mexico), asked if they have eggs, some people say yes, not knowing that inspection laws cover all eggs from other countries. Then they just hand over their eggs (typically 30-egg flat cartons). However, when people try to hide them under blankets, in spare tires, or mix them with other groceries, the first timer fine is $300. Sadly, seized eggs are incinerated. (One CNN commentator suggested instead they set up an omelet stand at the border.)

These confiscated eggs are in a San Diego customs and border control office:

Our Bottom Line: Incentives

With February egg prices averaging $6.00 and more in the U.S., $2 in Mexico is hard to resist. Consequently, for government, businesses, and individuals, our incentives have changed.

The U.S. government sent a letter to the Danish Egg Institute asking for more egg exports. (I wonder if it was at the same time we asked for Greenland and declared our tariffs.) But I am not sure what they mean. Will the government pay for the eggs or businesses? And will tariffs apply? As for businesses, along the entire supply chain, businesses have tradeoffs that relate to the choice between raising prices and maintaining the quantity demanded. And finally, with the February spike at $6 and more a dozen, we are buying fewer eggs, scouring stores and the internet for bargains, and stockpiling. And some of us, probably unintentionally, have become egg smugglers.

Saying it’s no yolk, officials are scrambling because of the egg crackdown at the border. So too are New York’s breakfast combo restaurants. (Sorry–could not resist.)

My sources: A gated Bloomberg had the Breakfast Index that Yahoo copied. Then, CNN, WSJ, and The Economic Times had lots to say about egg smuggling. After that, Reuters had the U.S. requests for egg exports. Please note that CNN said egg interceptions were up 29% while WSJ’s number was 36%. I am not sure which was accurate or if both were.