Justice Department Opens Antitrust Probe Into Egg Price Spike

(Bloomberg) — The US Justice Department has opened a preliminary probe into a recent surge in egg prices across the country, according to a person familiar with the investigation. 

The investigation, which is being conducted by the department’s civil antitrust enforcers, focuses on whether companies including Cal-Maine Foods Inc. and Rose Acre Farms Inc. have colluded to boost prices or limit supply, said the person, who asked not to be identified discussing a confidential probe.

A dozen large eggs in the Midwest cost an average of $8.41 wholesale as of Feb. 28, a record high and an increase of more than 200% from a year earlier, according to the US Department of Agriculture.

The surge has hit consumers’ wallets and become a political talking point for President Donald Trump and his detractors amid the worst-ever bird flu outbreak in the US, leading to the death of more than 130 million birds since 2022. The spike in prices has drawn scrutiny from lawmakers and industry watchdogs.

A representative for the Justice Department declined to comment. Its civil antitrust probe may end without any accusations of wrongdoing.

Representatives from Cal-Maine Foods and Rose Acre Farms, the nation’s top egg producers, didn’t immediately respond to requests for comment.

The investigation started under the Trump administration and is in initial stages, according to the person. 

Under former President Joe Biden, the DOJ investigated mergers in the egg market, the person said. During his administration the DOJ also increased Chicago-based staff for the antitrust division to boost the department’s focus on agriculture markets.

Farm Action, a group that began pushing Washington to look at egg prices three years ago, praised news of the Trump administration’s move.

“It does seem like more is going on than just the avian flu,” the group’s president, Angela Huffman, said in an interview Friday. 

On Thursday, Democratic US Senator Jack Reed of Rhode Island told USDA Secretary Brooke Rollins he’s concerned the Trump administration isn’t doing enough to address the problem.

“Since President Trump took office, the price of a dozen eggs has nearly doubled, and the administration fired several employees working to combat avian flu,” Reed wrote in a letter to the USDA chief. “While the administration has since announced a new effort to rehire those employees and invest in solutions, it must do better to coordinate an effective response that actually results in lower prices for Americans.” 

Capitol Forum earlier reported on the probe.

–With assistance from Michael Hirtzer.

More stories like this are available on bloomberg.com