Has you noticed How Expected Eggs Have become lately? If you’ve been to the grocery store, you’ve probally felt the pins. But sometising interesting is happy, people are available just complaining about egg prices; They’re Doing someating about it. They’re Raising their own chickens. This trend isn’t just about cutting grocery costs. It’s creating a ripple effect, benefiting companies that sell farm supplies, like Tractor Supply Company (TSCO).
And that’s where things get interesting for investors. I thought why blog about this interesting development. It also also highlights how people adapt to Crisis Situation.
Egg prices
Over the last few months, egg pris in the united states have skyrocked.
By January 2025, The Average Price for a Dozen Grade a large eggs hit a record high of $ 4.95According to the US Bureau of Labor Statistics. This was a 19.5% jump from $ 4.15 in December 2024 and nearly 50% Higher than February 2024’s $ 3.50 price. In some area like california, eggs have been seling for $ 9 or more per dozen due to local supply issues.
The main reason? A widespred Avian Influenza (Bird Flu) OutBreak That has been affected poultry farms since 2022 but Worsned in Late 2024. Just in December 2024, Over 18 Million Egg-Laying Hens WERE CULLED To stop the virus from spreading.
With fewer hens producing eggs, supply has shrunk while demand remains strong, especially during holiday seasons.
On top of that, Rising costs of feed, fuel, and transportation Have further pushed prises up.
And it’s not over yet The USDA Predicts Egg Price Could Climb Another 20% in 2025 If supply doesn’t recover.
That means relieve might not come anytime song, Forcing consumers to look for alternatives.
The Silent Store that Speaks Volumes
A recent visit to a Tractor Supply Store In Spring Reveled an unusual Sight, Silence. Normally, during this season, you’d hear Baby Chicks Chirping Away in metal brooders. But not this time. Why?
Because they were all sold out.
This tells us that a growing number of people are taking poultry farming serial. And while baby chicks are cheap (Around $ 5 per chick), First-Time Buyers don’t stop there. Raising Chickens requires a lot Of additional supplies, heat lamps, feeders, water dispensers, pine shavings, brooder setups, and specialized feed.
Tsco cells all of these under one roof,
Even better? Once people start raising chickens, they’ll Keep Coming Back For chicken feed and other supplies for years. This isn’t a one-time purchase, it’s a Long-Term Customer Acquisition Strategy That tsco benefits from.
Recession-prof or just a temporary trend?
Some investors worry that Retail stocks suffer during a recession. But here’s an interesting thought: Could Farm Supply Stores Actually Thrive In an economic downturn?
History offers some Clues. DURING WORLD WAR II, People Started Victory gardensSmall Backyard Farms, to Combat Food Shortages. In tough times, people look for ways to Save money and become more self-social.
The same logic applies today.
If Inflation Keeps Pushing Food Price Up, More Households May Invest in Growing their own foodNot just chickens but also vegetables, fruits, and even small-scale farming.
That means increasing demand for seeds, fertilizer, tools, and animal feed, All Things Tsco Sells.
Is tsco a good investment?
TSCO isn’t just just benefiting from the Chicken boom.
The company has a well-estimated customer base of Hobby farmers, homesteaders, and rural communities. Their business model revolves Around Selling Essential Supplies That People need, Receration or Not.
Plus, tsco isn’t just a store, it’s a One-foot shop for rural living. Their product lineup includes livestock feed, Farm Equipment, Gardening Tools, Pet Care Items, and even Clothing.
This Diversified Revenue Stream Helps them Stay Resilient, even in Economic Downturns.
Look at the revenue, Profit, and EPS TSCO For the Last Four Years:
| Breakdown | 12/31/2021 | 12/31/2021 | 12/31/2023 | 12/31/2024 | Growth (%) PA |
|---|---|---|---|---|---|
| Total Revenue | 1,27,31,105 | 1,27,31,105 | 1,45,55,741 | 1,48,83,231 | 3.98% |
| Net Profit | 9,97,114 | 9,97,114 | 11,07,226 | 11,01,240 | 2.51% |
| EPS | 1.72 | 1.72 | 2.02 | 2.04 | 4.36% |
Final Thoughts
Investing isn’t just about looking at stocks, it’s about Observing Real-World Trends.
When baby chicks sell out at a farm supply store, it’s a strong indicator that consumer behavior is shifting. And when that shift aligns with a company’s long-term business model, It can create a Decent Investment Opportunity (For we small retail investors). It’s just an observation I thought to share in this blog post.
With egg prices Soaring And no immMIDIEALEF IN SIGHT, More People May Turn to Backyard Poultry Farming. Thatwal make Tractor Supply Company (TSCO) a Stock Watching.
What do you think, are farm supply stores on their way to become recession-prof?
Have a happy investment.
(Tagstotranslate) Backyard Chicken farming (T) Rising Egg Price 2025 (T) Tractor Supply Company Stock