- DOJ antitrust division examines possible price-fixing among leading egg producers
- Retail egg costs doubled since January 2024 despite recent 18% wholesale drop
- Industry attributes hikes to avian flu outbreaks affecting 40 million hens
- Cal-Maine Foods reports 50% stock increase while dominating consolidated market
- Advocacy groups and lawmakers demand accountability for crisis profiteeringallegations
The U.S. Department of Justice has initiated a landmark antitrust investigation into the nation's largest egg producers following unprecedented price increases that have strained household budgets nationwide. Sources confirm federal investigators are scrutinizing whether corporate collusion exacerbated inflationary pressures, rather than supply constraints alone explaining the dramatic cost escalations.
Consumer egg prices have increased by 100% since January 2024, with wholesale prices peaking at $8.12 per dozen in February before declining to $6.85 in late March according to USDA data. This volatility persists despite industry claims that avian influenza outbreaks necessitated price adjustments, with over 40 million hens culled since late 2023.
Market leader Cal-Maine Foods, controlling 20% of U.S. egg production, reported a 73% quarterly profit increase while smaller competitors remain privately held. When four companies control 54% of a staple food market, consumers become price-takers rather than price-shoppers,noted Farm Action policy director Sarah Carden during a recent press briefing.
Regional impacts highlight the crisis' human dimension. A Queens bagel shop owner shared how egg costs now consume 12% of his operating budget, up from 4% in 2023. We've had to raise prices and reduce staff hours,he lamented. Customers think we're profiteering, but we're just trying to survive.
Three critical industry insights emerge from the controversy. First, decades of mergers have created an oligopoly structure vulnerable to coordinated pricing. Second, the lack of financial transparency from private egg producers complicates market analysis. Third, while avian flu reduced supplies by 7%, retail prices surged 112% - a 16:1 disproportionality suggesting non-supply factors.
Senator Elizabeth Warren emphasized regulatory urgency in a recent floor speech: When a CEO brags about 'favorable market conditions' while families ration protein sources, we must question whose interests our economy serves.The DOJ probe could redefine antitrust enforcement in agricultural markets if evidence of collusion surfaces.