Egg Producers To Pay Millions for Price Gouging during Bird-flu Epidemic

AJN LIVE IMAGES (20)

Three of America’s largest egg-producers will pay millions of dollars to settle price-fixing allegations, following a federal investigation.

The investigation alleged that the companies— Cal-Maine Foods Inc., Versova and Hickman’s Egg Ranch Inc.—coordinated to inflate the price of eggs during the recent epidemic of bird flu.

“The Antitrust Division is steadfast in our work to protect our nation’s citizens from illegal conduct that makes daily life less affordable,” said Deputy Assistant Attorney General Nicole Sarrine of the U.S. Department of Justice’s (DOJ) Antitrust Division in a statement.

The companies will pay $3.3 million and donate 53 million eggs to food banks or non-profits,

All three companies denied any wrongdoing and have not been charged by the DoJ as part of the settlement.

“Our decision to accept this settlement simply reflects our firm intention to put this matter behind us and focus on our business,” a Versova spokesman said.

The three companies have been huge beneficiaries of government indemnities for losses suffered as a result of bird flu.

Together they received $193 million, or about 13% of the industry’s $1.5 billion in payments.

Last year, egg prices hit $6 a dozen as huge numbers of birds were killed due to bird flu.

At the time, egg companies were adamant that bird flu was the main cause of the price increases.

During his presidential campaign, President Trump vowed to bring down the price of eggs as a day-one policy.

He pledged to “drive down prices and make America affordable again,” and after taking office, increased biosecurity measures to combat bird flu.

By spring 2025, there had been significant declines in wholesale prices, which were then passed on to consumers.

User Registration

By clicking “Register” above, you agree to the Terms of Use & Privacy Policy.