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U.S. antitrust authorities say several major egg producers may have coordinated pricing behavior during the 2022-2025 bird flu outbreak, potentially contributing to unusually high egg prices nationwide, The Wall Street Journal reports.
While the avian flu significantly reduced the laying hen population and tightened supply, regulators allege that some producers went further by influencing benchmark prices used across the industry.
The investigation centers on claims that certain companies engaged in coordinated bidding and trading activity in spot egg markets. These markets help set reference prices that supermarkets, distributors and other buyers rely on when negotiating contracts.
Authorities argue that instead of reflecting normal supply and demand, some of these bids may have been structured to signal artificial demand or steer prices higher than they otherwise would have been.
Companies including Cal-Maine Foods, Versova and Hickman’s Egg Ranch are among those named in the inquiry. Regulators allege that this conduct may have amplified price increases already driven by disease-related supply shocks, contributing to record-high consumer egg prices during parts of the period.
The Justice Department and a coalition of state attorneys general have reached a proposed settlement with the producers involved. The agreement includes financial payments, the donation of tens of millions of eggs to food banks and commitments to change trading practices to reduce the risk of coordinated behavior in the future.
The companies have not admitted wrongdoing but have agreed to the settlement terms while the court review process continues.
Authorities maintain that while supply constraints from the bird flu were a major driver of price increases, alleged coordination in benchmark-setting markets may have intensified the impact on wholesale and retail egg prices across the United States.
