The U.S. Department of Justice (DOJ) has initiated an investigation into major egg producers amid soaring egg prices, examining whether these companies have engaged in price-fixing or supply manipulation to inflate costs.
The probe, currently in its early stages, targets leading producers such as Cal-Maine Foods and Rose Acre Farms.
Background on Rising Egg Prices
Egg prices have experienced a significant surge over the past year, with the average cost of a dozen large, grade-A eggs reaching $4.95 in January 2025—a record high, according to the U.S. Bureau of Labor Statistics.
This increase has been largely attributed to the worst outbreak of avian influenza in U.S. history, which has led to the death or culling of over 160 million commercial poultry since 2022. Egg-laying hens have been particularly affected, exacerbating the supply shortage and contributing to escalating prices.
Details of the DOJ Investigation
The DOJ’s investigation seeks to determine whether major egg producers have conspired to keep prices high by coordinating supply restrictions or engaging in other anticompetitive practices. Investigators have sent letters to several egg companies, instructing them to preserve documents related to pricing discussions with customers and competitors, as well as communications concerning egg production and the avian influenza outbreak.
The investigation also includes a review of interactions with Expana (formerly Urner Barry), an organization that tracks wholesale egg-price information.
It remains unclear whether the probe is under the direction of civil or criminal authorities. The DOJ has declined to comment on the ongoing investigation.
Industry Response and Previous Legal Actions
In response to the investigation, the United Egg Producers, a trade group representing the industry, stated that egg farmers are “doing everything they can to fight back against this deadly bird flu outbreak.”
However, some groups, including the anti-monopoly organization Farm Action, have called for scrutiny of the egg industry’s pricing practices. In a letter to the Federal Trade Commission (FTC) and DOJ, Farm Action alleged that dominant egg producers—particularly Cal-Maine Foods—have leveraged the crisis to raise prices, amass record profits, and consolidate market power.
This is not the first time egg producers have faced legal challenges over pricing practices. In 2023, Cal-Maine and other producers were fined $53 million after being found guilty of price-fixing in a separate federal lawsuit.
Impact on Consumers and Retailers
The surge in egg prices has significantly impacted consumers and retailers alike. Shoppers are now paying about $5 per dozen, according to the Labor Department, while grocers and food distributors are paying about $8 per dozen at wholesale, often resulting in financial losses for retailers.
Some grocery stores have begun rationing eggs due to the skyrocketing prices and the devastating effect of bird flu.
Government Response
In response to the crisis, Agriculture Secretary Brooke Rollins has announced a $1 billion plan to slow the spread of the virus and … . The plan includes exploring egg imports as a means … reduce prices.
The Agriculture Department also plans to invest up to $1 billion to address egg costs, including $500 million for expanded biosecurity measures at egg-producing … .
Conclusion
The DOJ’s investigation into major egg producers highlights the complexities of the current egg market, where a devastating avian influenza outbreak has collided with concerns over potential anticompetitive practices. As the probe unfolds, it remains to be seen whether any formal actions will be taken against the companies involved and how this will impact egg prices and supply in the future.
