The Justice Department has launched an investigation into allegations of price-fixing among leading egg producers, including Cal-Maine Foods and Rose Acre Farms. This inquiry comes as the bird flu outbreak continues to devastate commercial poultry, leading to supply shortages and surging egg prices.
Early Stages of the Investigation
According to sources familiar with the matter, the price-fixing probe is still in its initial phases, with a focus on industry giants implicated in manipulating egg prices. The Capitol Forum was the first to report on the DOJ’s scrutiny of these companies.
Impacts of Avian Influenza
The current avian influenza outbreak, which originated in 2022, has claimed over 160 million poultry and severely impacted egg-laying hens. In response, egg prices have skyrocketed, reaching a record average of $4.95 per dozen grade-A eggs in January, as reported by the U.S. Bureau of Labor Statistics.
Economic Measures to Address the Crisis
Agriculture Secretary Brooke Rollins has unveiled a $1 billion strategy to combat the virus’s spread and mitigate rising egg costs. This plan includes exploring options such as importing eggs to bolster domestic supply and stabilize prices.
Calls for Investigation and Previous Legal Actions
Advocacy groups like Farm Action have called for a thorough investigation into alleged price gouging by egg producers during the outbreak. In a related development, Federal Trade Commissioner Alvaro Bedoya urged the FTC to examine industry pricing practices to alleviate consumer burden.
Notably, Cal-Maine and other egg producers faced a $53 million penalty in 2023 for engaging in price-fixing activities, following a separate legal battle.
As the DOJ delves deeper into the potential collusion among egg companies, consumers and industry stakeholders await further developments in this critical investigation.
