Key Points:

• The U.S. Justice Department (DOJ) has initiated an investigation into major egg producers amid record-high egg prices.
• Investigators are exploring possible collusion among producers concerning pricing and supply behavior.
• The price of eggs has dramatically increased, largely due to supply shortages caused by avian flu.
• Producers like Cal-Maine Foods are at the center of scrutiny, as prices have surged in recent months.
• The investigation, still in its early stages, may not lead to legal action and remains under the jurisdiction of the antitrust division.

The U.S. Justice Department is currently investigating major egg producers in response to skyrocketing prices, which have become a significant issue in recent months, potentially linked to industry-wide practices of price manipulation and supply management. This inquiry is reportedly focused on whether large egg producers such as Cal-Maine Foods and Rose Acre Farms may be sharing sensitive information that could contribute to price increases.

Egg prices have rocketed to over $8 per dozen in some regions, marking a stark rise attributed to supply disruptions caused by an ongoing avian flu outbreak that has resulted in the culling of approximately 166 million birds nationwide since 2022, according to Forbes. The DOJ's inquiry signifies a response to growing public and political pressure to examine potential antitrust violations within the industry.

The initial stages of the investigation involve civil investigative demands aimed at these producers to assess any collaborative behavior regarding pricing and supply levels. While the DOJ has yet to comment formally, the inquiry reflects heightened attention on corporate practices during times of crisis, as noted by various advocacy groups calling for transparency and accountability in food pricing policies, such as those expressed by lawmakers including Senator Elizabeth Warren of Massachusetts.

With egg prices expected to remain volatile well into 2025, the DOJ's investigation could lead to long-term implications for the egg production industry, which has seen significant consolidation and rising profits during this period of elevated prices. The price surge has prompted lawmakers and consumer advocacy groups to demand action from federal regulators to ensure fair pricing practices for consumers across the nation. As this developing story unfolds, further updates are expected regarding the outcome of the DOJ’s exploration into potential antitrust actions.