The Justice Department has initiated an investigation into major egg producers in the United States over potential antitrust violations, following a dramatic rise in egg prices, according to two individuals familiar with the matter.
Lawyers from the department are in the process of issuing civil investigative demands—akin to subpoenas in civil cases—to several producers, including Cal-Maine Foods and Rose Acre Farms, one of the sources said.
The investigation aims to determine whether these companies have been exchanging sensitive information regarding pricing and supply, thereby contributing to the sharp increase in egg prices.
The inquiry is being conducted by the antitrust division’s Chicago office, the individuals stated.
A spokeswoman for the Justice Department declined to comment on the matter. Representatives from Cal-Maine and Rose Acre did not immediately respond to requests for comment via email. The Capitol Forum was the first to report on the inquiry.
Egg prices began surging last year and quickly became a point of debate in the presidential race. Producers have attributed the increase to the avian flu outbreak, which has led to the culling of millions of hens, tightening egg supplies and driving prices beyond $8 per dozen in certain regions.
The Justice Department’s investigation may not necessarily result in legal action. Previously, some lawmakers and advocacy organizations have urged federal regulators to scrutinize the industry’s pricing methods.
Over the past four months, approximately 15 percent of the nation’s egg-laying hens have been culled, while wholesale egg prices have skyrocketed by 255 percent, according to Expana, a firm that tracks egg pricing data.
The five largest egg producers, including Cal-Maine and Rose Acre, collectively control about half of the U.S. egg market.
Cal-Maine, a publicly traded company that holds around 20 percent of the market share, saw its revenues for the quarter ending in late November rise by 82 percent—from $523 million the previous year to $954 million.
The company attributed this growth to “an increase in the net average selling price of shell eggs as well as an increase in total dozens sold.”
However, some argue that the industry may be deliberately restricting supply to drive prices higher.
“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,” a group of Democratic lawmakers, led by Senator Elizabeth Warren of Massachusetts, wrote in a letter to President Trump in January.
Justice Department Set To Investigate Egg PricesOn February 12, Farm Action, an advocacy group opposing corporate monopolies in the food and agriculture sector, sent a letter to the Federal Trade Commission and the Justice Department, urging them to investigate possible monopolization and anti-competitive coordination within the industry.
The organization contends that losses due to culling have been “relatively modest” compared to the overall size of the U.S. egg-laying flock, yet producer profit margins have surged.
United Egg Producers, the trade association representing the industry, placed the responsibility for the rising prices squarely on the severity of the avian influenza outbreak.
According to the group, the industry lost over 40 million egg-laying hens throughout 2024, with an additional 31 million culled in just the first two months of this year as the virus spread rapidly.
The highly pathogenic disease is “single-handedly responsible for the dramatic instability and losses in the nation’s egg supply,” said Chad Gregory, the group’s chief executive, in a statement.
During previous outbreaks, Gregory noted, affected farms were typically able to recover within three to six months. However, due to legal requirements, the current recovery process can take over a year.
“The onslaught of new cases has compounded the problems for egg farms’ ability to recover,” he stated, adding, “and it will take time to restore the nation’s egg supply.”
Emily Metz, chief executive of the American Egg Board, echoed this view in a statement. “To suggest that higher egg prices are the result of anything other than bird flu is a misreading of the facts and the reality,” she said.
Historically, egg producers have faced legal consequences for price manipulation through supply restrictions. In 2011, major food companies such as Kraft and General Mills filed lawsuits against the largest egg producers and industry groups, accusing them of colluding to limit supply and inflate prices.
In 2023, a jury found that these producers had unlawfully raised prices, leading to a $17.7 million damages award, which was tripled to $53 million under antitrust laws.
Under former President Joseph R. Biden Jr., the Justice Department’s antitrust division expanded its Chicago office last year to investigate potential antitrust violations within the agricultural sector.
To address record-high egg prices, the Agriculture Department announced in February that it was considering increasing egg imports and boosting funding to combat the spread of avian flu.
