The Department of Justice is currently investigating major egg producers for the significant spike in egg prices. According to a source familiar with the matter, the Justice Department is scrutinizing whether these companies are sharing information regarding supply and pricing, potentially leading to the surge in prices. While the egg producers, along with the industry’s trade association, attribute the soaring prices to the avian flu outbreak, investigators are delving deeper to uncover any potential antitrust violations.
The investigation, spearheaded by the Antitrust Division of the Justice Department, is still in its early stages and may not necessarily result in legal action. Democratic lawmakers, including Sen. Elizabeth Warren, have voiced concerns about the impact of rising food prices on families, urging the administration to take concrete steps to address the issue. In a letter to President Donald Trump, they highlighted the disproportionate burden on working families, who have faced escalating food costs amid the pandemic and avian flu crises.
Egg prices have more than doubled since January 2024, with small businesses and wholesale buyers seeing prices exceeding $8 for a dozen eggs. However, the most recent Department of Agriculture report indicates a significant drop in the national average wholesale price to $6.85 per dozen. Farm Action, a farm advocacy organization, commended the Department of Justice for launching an investigation into the exorbitant egg prices, emphasizing the need to hold monopolistic egg producers accountable for their actions.
While the avian flu outbreak has undoubtedly impacted egg production, Farm Action asserts that it should not justify the steep prices consumers are currently facing. The organization, citing sources at the DOJ, has called for a thorough examination of potential antitrust violations within the dominant egg-producing corporations to ensure justice for all Americans. The consolidation of the egg industry over the years, with Cal-Maine Foods emerging as the largest producer, has raised concerns about the monopolistic practices in the market.
With Cal-Maine Foods being the largest U.S. egg producer and witnessing a surge in profits due to the escalating egg prices, questions have been raised about the company’s role in the pricing dynamics. While publicly traded companies like Cal-Maine disclose financial data, the next four largest egg producers are privately held, limiting transparency in the industry. Senator Warren has criticized the exploitation of crises like the avian flu outbreak to boost profits and called for a closer examination of Cal-Maine’s financial gains amid the price surge.
As the investigation unfolds, consumers remain vigilant about the factors driving the unprecedented increase in egg prices. The implications of the Justice Department’s inquiry into potential antitrust violations in the egg industry could have far-reaching consequences for both producers and consumers. Stay tuned as this developing story sheds light on the intricate web of supply chain dynamics and market forces influencing egg prices nationwide.
