Egg producers see record profits, prompting investigation by the Justice Department
alue of table eggs has increased significantly. For example, the average price per dozen exported has risen sharply, going from $2.53 to $5.63 per dozen. The U.S. Department of Justice has taken note of this extreme surge and has decided to conduct an initial investigation to uncover the reasons behind such a substantial spike.
Among the array of reasons behind this remarkable price increase, the impact of the avian flu outbreak casts the longest shadow. As a result of the avian flu, farmers were required to cull millions of egg-laying hens, impacting egg production in a major way. While there are differing opinions on whether the avian flu alone could cause such a significant inflation, it remains a key factor contributing to the current situation.
The investigation by the Department of Justice is focused on determining if companies have collaborated to artificially manipulate prices or limit the supply of eggs to consumers. Notably, the investigation commenced during the previous administration under President Trump. This move by the Department of Justice has been commended by Joe Maxwell, the president of Farm Action, who expressed concerns about the impact of monopolistic practices in the egg industry on American consumers.
Farm Action, in its analysis, pointed out that the wholesale prices of Grade-A, Large, White, Shell Eggs have seen a staggering increase from $0.50–$1.30 per dozen in 2021 to $6.00–$8.00 per dozen currently. It highlighted the case of Cal-Maine Foods, a major player in the egg market, which has seen a substantial rise in profits, pointing to a potential case of market consolidation practices. The advocacy group stressed that historical precedents indicate that such issues should have been resolved promptly and efficiently, leaving room for questions about the lingering impact of the current situation.
Furthermore, Food and Water Watch’s latest report highlights the upward trajectory in egg prices even before the recent outbreak of the bird flu, emphasizing the need for stricter enforcement of antitrust laws and the transition towards smaller, more resilient food systems. The American Egg Board, on the other hand, argues that market forces, such as the scarcity caused by avian influenza, are primarily responsible for the current soaring prices.
The narrative surrounding the investigation into the egg industry’s practices and pricing strategies continues to unfold, shedding light on the complexities of the market forces at play and their impact on consumers. With ongoing probes and analyses, it remains to be seen how the industry will respond and adapt to these evolving circumstances in the quest to balance profitability and consumer affordability.
