The US Department of Justice is investigating a dramatic surge in egg prices, exploring potential collusion among major producers like Cal-Maine Foods Inc. and Rose Acre Farms Inc. This preliminary antitrust probe examines whether these companies conspired to manipulate supply or inflate prices, impacting consumers nationwide.
Wholesale egg prices have skyrocketed over 200% in the past year, reaching a record high of $8.41 per dozen in the Midwest. This unprecedented increase has significantly burdened consumers and become a contentious political issue, especially in light of the devastating bird flu outbreak that has decimated poultry populations. The confluence of these factors has prompted scrutiny from lawmakers and industry watchdogs, leading to the Justice Department’s investigation.
The investigation, initiated during the Trump administration, is still in its early stages. It follows previous efforts by the DOJ under the Biden administration to scrutinize mergers within the egg market and bolster its antitrust division’s focus on agricultural practices. The department has declined to comment on the ongoing probe, and it’s important to note that the investigation may not result in any formal accusations of wrongdoing.
Cal-Maine Foods and Rose Acre Farms, the two largest egg producers in the US, have not yet responded to requests for comment. However, advocacy groups like Farm Action, which has been raising concerns about egg pricing for years, have welcomed the investigation. Farm Action President Angela Huffman expressed skepticism that avian flu alone accounts for the drastic price increases.
Senator Jack Reed (D-RI) recently voiced concerns to USDA Secretary Brooke Rollins about the administration’s response to the escalating egg prices. He criticized the administration’s handling of the avian flu outbreak and urged for stronger action to alleviate the financial strain on consumers. Reed’s letter highlighted the near doubling of egg prices since President Trump took office and questioned the effectiveness of current government efforts to address the issue. The ongoing investigation underscores the complex interplay of factors contributing to the record-high egg prices and the need for a thorough examination of potential anti-competitive practices within the industry.
