The Justice Department has launched an investigation into soaring egg prices and are looking into whether large producers conspired to raise prices on everyday Americans.
The probe comes as egg prices hit a record high last month amid a bird flu outbreak, with the DOJ investigation now said to be exploring whether producers held back supplies.
Supermarkets across the nation have seen long lines of shoppers looking for the everyday grocery staple, with many stores forced to put a limit on how many cartons customers can buy at once.
The investigation, first reported by the Wall Street Journal, is said to be in its early stages and it is not clear if it is under the direction of civil or criminal authorities, nor which large egg producers are being probed.
It comes as sky-high egg prices have been blamed on inflation and the outbreak of avian flu since 2022, which has become the deadliest in American history with over 150 million birds killed.
Emily Metz, chief executive of the American Egg Board, an industry marketing firm, told WSJ that many egg producers have struggled to repopulate their flocks because even young birds, or pellets, are killed by the flu.
‘Farmers know people are frustrated and they are frustrated too by the situation,’ Metz said.
‘They know they are not able to put on the volume of eggs that people want.’
The Justice Department has launched an investigation into soaring egg prices and are looking into whether large producers conspired to raise prices on everyday Americans
Egg prices hit all-time highs last month amid high inflation and the worst outbreak of avian flu in American history
As prices of a dozen eggs hit double figures in many places across America, the industry and authorities have recently taken steps to bring costs down.
Last month, the Agriculture Department said it plans to invest up to $1 billion to address the price of eggs, including $500 million to improve biosecurity.
The investigation comes as the largest egg producer in the US, Cal-Maine Foods, reported a surge in profits as a result of the rise in egg prices, and its stocks have soared since the bird flu outbreak.
Lisa Phelan, an antitrust partner at Morrison Foerster, told the Wall Street Journal that it is not uncommon for antitrust authorities to open investigations when struggling supply chains lead to an increase in profits.
‘There can be anticompetitive efforts to deal with the crisis and that is not OK either,’ she said.
