Justice Department probes major egg producers over price hikes

In early 2025, the United States Justice Department initiated an investigation into major egg producers due to exorbitant price increases of eggs, which have doubled over the last year. This investigation was reportedly sparked by concerns raised by advocacy groups like Farm Action, which highlighted potential antitrust violations within the egg industry. These groups argued that, while avian flu has contributed to supply issues, it should not justify the significant markups seen at grocery stores. Egg producers have claimed that they are price takers rather than price makers, attributing the price hikes to supply troubles caused by the ongoing avian influenza outbreak. The avian flu crisis has severely impacted the industry, leading to a reduced supply of eggs and resulting in consumers paying more at the retail level. Reports indicated that many egg producers, particularly the largest, Cal-Maine Foods, have been experiencing record profits during the peaks of the avian flu outbreaks, leading to suspicions about their pricing practices. In recent analyses, critics cited evidence of significant profit increases for egg producers amid a narrative of obstruction of supply, which has prompted calls for a deeper investigation by the Department of Justice. While some consumer data suggests that wholesale egg prices have started to decrease, experts warn that it may take time for these changes to be reflected in retail prices. Grocery stores might continue to charge elevated prices as they seek to recover losses associated with supply chain disruptions linked to the avian flu. The statement from Farm Action confirmed their support for the Justice Department's actions, expressing urgency for a comprehensive evaluation of the industry to ensure fair pricing for essential goods. High retail prices for eggs have been a contentious issue, with various stakeholders calling for accountability and transparency. Many consumers, feeling the impact of increased grocery bills, are concerned about the implications of such profit margins when essential food supplies become unaffordable. The complexities of market dynamics in relation to the avian flu, compounded by the actions of major food producers, have raised significant discussion points regarding the responsibility of companies to maintain fair pricing amidst crisis situations affecting supply chains.