The Department of Justice has launched an anti-trust investigation into escalating egg prices, including whether large producers have conspired to raise prices or hold back supply.
According to Bureau of Labor Statistics data, the price of eggs jumped 15.2% from December to January, and 53% from January 2024 to January 2025. The average price of a dozen Grade A large eggs in January was $4.95, a 139% increase from October 2023, when the cost was $2.07.
The DOJ sent a letter to some egg companies that instructed them to preserve documents about their pricing conversations with customers and competitors, as well as communications with the group that tracks wholesale egg prices, Expana, The Wall Street Journal reported Friday, citing people familiar with the matter.
The letter also signaled the department was interested in company communications about egg production and the bird flu. It is unknown if the investigation, in its initial stages, is being conducted by criminal or civil authorities.
Antitrust authorities often open investigations when soaring prices appear to stem from unusual disruptions to supply chains, Lisa Phelan, an antitrust partner at Morrison Foerster, told the Journal.
"There can be anticompetitive efforts to deal with the crisis and that is not OK either," she said.
Many have attributed high egg prices to the worst outbreak of avian influenza in U.S. history that has resulted in the Biden administration’s Department of Agriculture ordering the culling of more than 150 million chickens, turkeys, and egg-laying hens, according to the Journal.
The USDA stated there is no treatment for highly pathogenic avian influenza and the only way to stop the disease is to "depopulate" — or euthanize — all affected and exposed poultry.
It has been difficult for egg producers to repopulate their flocks because even young birds, known as pullets, have been killed by the bird flu, Emily Metz, chief executive of the American Egg Board, an industry-funded marketing organization, told the Journal. That has extended the recovery time from an outbreak from six months to as much as a year, she said.
"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."
Low supply of egg-laying hens and steady demand despite higher costs have stretched egg suppliers thin, leaving many grocers with empty shelves. Grocers believe egg shortages are among the leading drivers of food inflation over the past few months, hampering President Donald Trump’s efforts to reduce overall inflation, which stood at 3.0% in January, according to the Consumer Price Index.
The USDA said last month it plans to invest as much as $1 billion to address egg costs, including $500 million for expanded biosecurity measures at egg-producing farms, the Journal reported.
Cal-Maine Foods, the largest U.S. egg producer and one of the few publicly traded egg companies, has reported increased profits because of the rising egg prices, and its stock has surged since the bird flu outbreak. The shares have gained about 50% over the past 12 months, according to the Journal.
The egg industry has been criticized by groups such as Farm Action, which has petitioned lawmakers and law enforcement to investigate egg pricing, the Journal reported.
In a February letter to the Federal Trade Commission, the group alleged that companies were slow to rebuild their egg-laying hen flocks in order to restrict supply and sustain inflated prices. Some egg producers said it takes time to rebuild their flocks, and they want to avoid a repeat infection at a facility.
Michael Katz ✉
Michael Katz is a Newsmax reporter with more than 30 years of experience reporting and editing on news, culture, and politics.
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