Egg prices surge in Spain as Podemos targets Mercadona

Egg prices skyrocket and focus shifts to Mercadona

In February, a dozen eggs cost €2.15. Now it exceeds €3. This comparison was presented by Podemos spokesperson Irene Montero in a message directly targeting Mercadona: Juan Roig’s chain has seen profits rise by 40% this year, while the basic product has become nearly 40% more expensive in just months. Her question—who is pocketing that money—has sparked a debate far beyond the supermarket checkout.

Podemos’ argument is simple: farmers are not benefiting from the price hike, so the margin must be retained somewhere in the distribution chain. And the usual suspect has a name. But the response generated by this message is anything but simple. The exchange of analyses shows that egg pricing is a puzzle with many pieces and no single culprit.

Why have egg prices risen if Mercadona earns more?

The first line of analysis points to production costs. Some argue that European animal welfare legislation has tightened conditions for laying hens: lower density, larger cages, and investments that small producers cannot always afford. The result would be fewer profitable farms and thus less supply. When supply contracts and demand remains steady, prices rise. It’s basic economics, even if it hurts.

Others go further, highlighting a side effect rarely mentioned: cages removed by European farmers due to legal obligations ended up in Segarro, where chickens are raised under standards banned here. Those eggs then compete on the same shelves as local products. The paradox is evident: domestic production becomes more expensive while imports come from those who don’t trinc the same rules.

The second factor appearing in the analysis is energy and feed costs. Electricity, diesel, cereals: everything that powers and heats poultry houses has become more expensive. This translates into the final price before any supermarket adds its margin. Montero’s question—who takes the money—has an uncomfortable answer: partly, no one. Costs take it.

Mercadona’s profit and the VAT nobody mentions

The figure of Mercadona’s 40% profit increase is real but incomplete. The distribution chain isn’t the only one gaining when basic product prices rise. VAT on basic foods has become a record revenue source for the Spanish tax authority (Hacienda). With every dozen eggs sold, the State collects a fixed percentage. If prices rise, revenue rises. Without investing a euro in hens, barns, or logistics.

This is the argument used by those defending Mercadona: net margins in food distribution are narrow, often below 1% or 2%. Gross profits may grow because volume increases, but the percentage per unit sold isn’t what the headline suggests. Comparison with other supermarkets—Carrefour, Eroski, Alcampo, Día—debunks the monopoly thesis: all have raised prices, some more than Mercadona. At Eroski, according to available data, a dozen exceeds €4.40.

So the question isn’t why Mercadona earns more. It’s why Mercadona alone is targeted when the phenomenon is systemic. Some analysts suggest the answer lies in the company’s structure: no traditional media advertising, no revolving doors, no dependence on usual influence channels. An inconvenient actor for those expecting reciprocity.

The political battle behind egg prices

Montero’s message isn’t just economic; it’s political. And it has been interpreted as such. The left has spent months seeking a narrative that connects with people’s wallets, and food inflation is the most fertile ground. Targeting a large corporation—especially one as popular as Mercadona—allows building a clear enemy. The problem is that the enemy isn’t always who it seems.

The business sector’s response has been forceful: if the issue were Mercadona’s margin, they could simply launch a €2 egg line to undercut competitors. They don’t because they can’t. Costs don’t allow it. Perhaps this is the most elegant refutation: competition works, but the price floor is set by cost structures, not executive greed.

Meanwhile, consumers keep paying. A dozen that cost €2.15 in February now exceeds €3. A 40% increase in months. For a family buying two dozens weekly, that’s over €100 a year just on eggs. The figure isn’t dramatic, but it adds up. In a context of accumulated inflation, every addition counts.

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The most reasonable prediction is that prices won’t drop unless costs change. European legislation won’t be reversed, energy costs remain volatile, and supply will take time to recover. If anyone expected targeting Mercadona to solve anything, they chose the wrong tool. The problem isn’t who takes the money. It’s that the money simply no longer covers what it used to.