WASHINGTON, DC (LOOTPRESS) – The U.S. Department of Justice (DOJ) has launched an investigation into major egg producers over concerns that price coordination and market manipulation may have contributed to soaring egg prices, according to sources familiar with the matter.
The probe, led by the DOJ’s Antitrust Division, is examining whether egg producers shared supply and pricing information, potentially driving up costs for consumers.
Egg Prices Under Scrutiny
Egg prices have more than doubled since January 2024, with wholesale prices reaching over $8 per dozen last week. However, the latest U.S. Department of Agriculture (USDA) report indicated a recent drop, bringing the national average wholesale price down to $6.85 per dozen.
Producers have attributed the rising costs to avian flu outbreaks, which have reduced supply. However, some lawmakers and consumer advocacy groups argue that corporate profiteering may also be a factor.
Political and Industry Reactions
A group of Democratic lawmakers, including Senator Elizabeth Warren (D-Mass.), has demanded that the Biden administration take action to lower food prices. In a letter to President Donald Trump, they accused major grocery chains and egg producers of exploiting supply chain issues to increase profits.
“Egg producers and grocery stores may leverage the current avian flu outbreak as an opportunity to further constrain supply or hike up egg prices to increase profits,” Warren wrote.
Egg Industry Defends Pricing
Emily Metz, CEO of the American Egg Board, dismissed the accusations of price-fixing, calling them a “misreading of facts and reality.”
“Egg farmers are price takers, not price makers,” she said, attributing the higher costs to the avian flu crisis and ongoing demand for eggs.
Cal-Maine Foods Faces Scrutiny
The egg industry has consolidated over the years, with Cal-Maine Foods emerging as the largest U.S. egg producer. The company recently reported a 342% increase in gross profits in its latest SEC filing, citing higher egg prices and reduced supply due to avian flu.
While Cal-Maine has denied wrongdoing, it previously lost a price-fixing lawsuit in 2023 and was ordered to pay millions in damages. The company did not respond to requests for comment.
Future Implications
Even as wholesale egg prices begin to decline, experts warn that consumers may not see immediate relief at grocery stores. Retailers may hold prices higher to recover from previous losses, according to Karyn Rispoli, managing editor of Expana, a firm that tracks food prices.
The DOJ’s investigation is still in its early stages, and it remains unclear whether any legal action will be taken against egg producers. However, consumer advocacy groups, including Farm Action, have praised the probe, arguing that corporate influence over food prices must be addressed.
