US egg producers to donate millions of eggs and pay $3.3 billion in DOJ settlement

US egg producers to donate millions of eggs and pay $3.3 billion in DOJ settlement Average U.S. egg prices reached a record high of approximately $6.23 per dozen in March 2025 - Bookmark - CommentsGo to comments The U.S. Justice Department and 17 states reached settlement agreements with three major egg producers, resolving allegations that the companies illegally colluded for years to inflate prices, including during a period when costs soared to record highs. Cal-Maine Foods, Versova, and Hickman’s Egg Ranch were accused by federal and state authorities of a clandestine arrangement to "artificially inflate the daily price quotations for eggs" between June 2022 and March 2025. Investigators found that the companies coordinated their bids to Urner Barry Publications, a key index that determines how much grocery stores, restaurants, and other buyers pay for billions of eggs annually. This alleged manipulation ultimately led to "higher prices for eggs sold to consumers," according to the complaint filed in Iowa on Monday, the day the settlement terms were announced. New York Attorney General Letitia James, who helped spearhead the investigation, stated, "When powerful corporations collude behind the scenes to raise prices, working families suffer the costs. These egg producers manipulated the market to squeeze even more profit out of consumers and businesses." While none of the companies admitted wrongdoing under the settlements, they collectively agreed to pay $3.3 million and donate 53 million eggs to food banks and nonprofits to resolve the states' claims. The money will be distributed among the participating states. The Justice Department and the states also mandated that the companies adopt antitrust compliance programs and prohibit communication with competitors regarding pricing and bidding strategies. These settlements still require court approval. Omeed A. Assefi of the Justice Department remarked on Tuesday that the proposed settlements "resolve years of conduct that dragged on Americans’ finances and their everyday lives." Average U.S. egg prices reached a record high of approximately $6.23 per dozen in March 2025, largely attributed to a bird flu epidemic that necessitated the culling of millions of egg-laying chickens. While producers blamed the outbreak for the price surge, critics accused large companies of exploiting their market dominance, prompting the government investigation. The complaint noted that price quotations "dropped significantly" after Cal-Maine, Versova, and Hickman’s became aware of the Justice Department’s investigation and were instructed to preserve documents in March 2025. Consumer egg prices subsequently tumbled to under \$2.20 per dozen by May 2026, as replenished flocks recovered despite the ongoing outbreak. Cal-Maine maintained on Monday that the allegations of price manipulation were "baseless" and asserted that its conduct has been legal. The company also noted that while it was part of a cooperative with the other egg producers, it left the group in May 2024. Cal-Maine CEO Sherman Miller stated that the settlement agreement "enables us to move forward so we can devote our full attention to what matters most: delivering affordable, high-quality eggs and egg-based prepared foods to consumers nationwide." Miller added that the period reviewed by the Justice Department "was a particularly challenging time," citing avian flu, the COVID-19 pandemic, adverse weather, and other market conditions as contributors to temporary supply shocks and high prices in recent years. He affirmed Cal-Maine "took numerous steps to protect and grow its hen flock" during that time. Versova echoed a similar sentiment, highlighting the severe impact of bird flu on its farmers and emphasizing that they "don’t set the wholesale price of eggs." Instead, Versova stated that the price of most of its eggs is dictated by fluctuations in the cost of grain used in hen feeds. Meanwhile, Hickman's owner Mantiqueira USA, which acquired the egg producer in November, noted that the "conduct referenced in the complaint predates our acquisition," and affirmed its commitment to legal compliance. Some advocacy groups, however, argue that the proposed settlements do not go far enough. Angela Huffman, president of Farm Action, commented, "Consumers paid record prices while dominant egg producers reported extraordinary profits, yet the result is another settlement that corporations can treat as the cost of doing business rather than meaningful accountability." Cal-Maine, the only publicly traded company among the three, reported a profit of $22 billion for the 2025 fiscal year. Under its settlement with the states, the company will pay $1.5 million and donate 30 million eggs. Court documents indicate Versova will provide 20 million eggs and $ 800,000, and Hickman's would be on the hook for 3.25 million eggs and $1 million. In addition to New York, the states party to the settlement agreements include Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont, and Wisconsin. Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments