DOJ launches probe into sky-high egg prices and – Business News
The Justice Department has launched an investigation into soaring egg prices – probing whether producers have illegally conspired to restrict supply behind the veil of a rampant bird flu outbreak, according to a report.
The investigation is in the early stages and might not lead to any formal action, sources told The Wall Street Journal.
The Justice Department did not immediately respond to The Post’s request for comment.
Egg prices have nearly doubled over the past year as producers blame a rampant bird flu outbreak. Christopher Sadowski
Egg prices have nearly doubled over the past year, and shoppers have been left to fight over a few cartons as some grocery shelves lay bare.
Prices have surged at the grocery store, with the cost of eggs jumping 15.2% in January – the largest increase since June 2015, according to the Bureau of Labor Statistics.
That growth has largely been blamed on a rampant bird flu outbreak that has forced farmers to cull sick flocks and resulted in a nationwide shortage.
It’s the deadliest avian flu outbreak in US history – with more than 150 million chickens, turkeys and egg-laying hens dead since 2022, according to the Agriculture Department.
But consumers also have shared concerns on social media that egg producers have been colluding to benefit from the bird flu outbreak, potentially withholding their supply to further raise prices.
The country’s largest egg producer, Cal-Maine Foods, has repeatedly raked in higher profits as egg prices soared.
Some grocery shelves have been left bare as the nation faces a short supply of egg-laying birds. JOHN G MABANGLO/EPA-EFE/Shutterstock
Its stock has surged more than 100% since 2022, when the avian flu started to significantly spread.
Farmers have alleged major egg producers have been slow to rebuild their flocks to keep supply low and reap the benefits as steady demand sends price sky-high.
Major companies, meanwhile, have argued that it takes time to re-build their flocks, especially as they use caution not to infect facilities again.
Some of the nation’s egg producers were recently found guilty in a similar scheme.
Consumers have shared concerns on social media that egg producers have been colluding to benefit from the bird flu outbreak. Christopher Sadowski
In 2023, a federal jury in Chicago ruled that Cal-Maine, Rose Acre Farms, United Egg Producers and US Egg Marketers restricted their supplies for four years starting in 2004 to boost their profits.
The defendants have since challenged the verdict and asked for a new trial, or for the original decision to be reversed.
Shoppers have been slapped with staggering price tags at the grocery store – as much as $12 at some locations. The average price for a dozen eggs has jumped to $5 across the country, according to the Labor Department.
But wholesale prices have risen to $8 a dozen, so retailers are losing out big on the cooking staple.
President Trump has vowed to lower stubbornly-inflated prices at the grocery store, most recently blaming his predecessor Joe Biden for the rising egg prices during his address to a joint session of Congress earlier this week.
The Agriculture Department last month announced plans to invest as much as $1 billion into tackling the rising costs – including $500 million for more biosecurity measures at farms, along with funding to help farmers and vaccine research for chickens.
