Timesdo. Washington, USA – The Department of Justice has launched a preliminary investigation into the country’s major egg producers due to the sustained price increase, according to sources familiar with the matter. Investigators are analyzing whether these companies are sharing supply and pricing information, which could be driving the increases. The egg industry, through its trade association, attributes the rising costs to the avian flu.
The inquiry, led by the Antitrust Division, is still in its early stages and may not necessarily result in legal action. However, growing political pressure has led Democratic lawmakers, including Senator Elizabeth Warren, to demand answers on how the government plans to ease food costs for families.
In a letter to President Donald Trump, they stated that major food corporations have made record profits, taking advantage of crises like the pandemic and avian flu outbreaks to raise prices beyond what is necessary.
Since January 2024, the price of eggs has doubled, sparking major concerns among small businesses and consumers. Last week, some wholesale buyers were paying over $8 per dozen, though the latest Department of Agriculture report indicated a significant drop in the national average wholesale price, now standing at $6.85 per dozen.
Organizations like Farm Action, which advocate for farmers’ rights, have supported the Justice Department’s investigation, calling it a necessary step to curb the monopolistic power of the industry. In a statement, the group argued that while avian flu is real, it cannot be used as justification for high costs affecting consumers. They also warned about potential anti-competitive practices and urged authorities to conduct a thorough review of the sector.
The egg market has become increasingly concentrated, with Cal-Maine Foods leading U.S. production and reporting growing profits due to rising prices. The company, which is publicly traded and has acquired multiple brands, has seen its stock value increase by 50% over the past year. The next four largest egg producers are privately owned, so their financial data remain undisclosed.
In January, Warren warned about the impact of this situation, suggesting that producers and grocery stores might be leveraging the avian flu outbreak to further restrict supply and inflate prices. The senator pointed out that Cal-Maine reported a significant increase in gross profits between the first and second fiscal quarters of 2025, while keeping prices high. According to the company’s CEO, their higher-than-expected net income was due to rising market prices, resulting from a restricted supply of shell eggs.