Egg price investigation explained : For millions of Americans, rising egg prices became one of the most visible signs of inflation during the bird flu outbreak. Grocery bills climbed, restaurants added egg surcharges, and consumers were repeatedly told that the shortage was being driven by avian influenza.
Now, a complaint filed by the US Department of Justice and attorneys-general from 17 states alleges that behind the scenes, executives at three major egg producers were privately communicating in ways that helped keep wholesale egg prices elevated during parts of the crisis, as per a report.
The companies have denied wrongdoing, but the case is drawing attention because of the text messages and market activity described by prosecutors.
Why egg prices in US became such a big issue
The egg industry faced genuine disruption as bird flu swept through flocks across the United States. Tens of millions of hens were culled, supplies tightened, supermarkets limited purchases, and some restaurants introduced temporary surcharges on egg-based meals.
Throughout that period, industry representatives repeatedly pointed to avian influenza as the main reason prices were climbing.
According to the Justice Department complaint, however, investigators believe the market was also influenced by actions taken by several major producers that allegedly helped prevent wholesale prices from falling, as per a Financial Times report.
The text message that caught investigators' attention
One of the most striking allegations involves a December 2024 text message.
According to the complaint, Cal-Maine Foods' former chief executive sent a message to the head of a rival company saying, "Let it rip," as quoted by FT.
Prosecutors allege that companies then submitted numerous offers to buy eggs in the wholesale market, including bids posted above prevailing prices that often went unfilled.
The complaint argues that these bids sent signals of unusually strong demand, encouraging pricing service Urner Barry to increase its benchmark egg quotations.
How investigators say the market was influenced
According to prosecutors, the companies allegedly continued submitting premium bids during the holiday season while also urging higher benchmark prices and questioning trades that could have pushed prices lower.
The Justice Department pointed out that these activities were intended to support wholesale prices even when normal market conditions suggested they might decline.
Bird flu remained the public explanation
While these alleged communications were taking place, company executives continued publicly discussing the effects of avian influenza.
When Cal-Maine reported quarterly results, Chief Executive Sherman Miller said the company and the broader industry had faced significant challenges because of ongoing bird flu outbreaks.
The Justice Department does not dispute that bird flu severely affected the industry. Instead, prosecutors argue that the outbreak created conditions that companies allegedly tried to exploit through their market activity.
The complaint points to earlier communications
Investigators say similar communications began much earlier.
According to the complaint, in September 2022 a Cal-Maine executive texted the chief executive of Hickman's Egg Ranch saying, "We are bidding up. Let's hold it today," as quoted by FT.
By mid-October, prosecutors allege bids from Cal-Maine and Hickman's accounted for more than half of all bids submitted through Egg Clearinghouse, a wholesale exchange.
The complaint says those bids helped keep benchmark prices from declining.
Record profits during the bird flu years
Court filings highlight how profitable the period became for Cal-Maine.
The company reported that its gross profits increased significantly during the years affected by bird flu, while egg sales volumes grew much more modestly. Its filings also show that the company paid hundreds of millions of dollars in dividends during fiscal 2023.
What happened in late 2022
According to prosecutors, activity intensified in December 2022.
The complaint alleges that executives encouraged competitors to post strong purchase bids early in the trading day.
It also alleges dozens of bids were submitted at premium prices, while other market participants submitted very few bids during the same period. Later that day, Urner Barry increased its benchmark quotations, as per the report.
Prosecutors also describe an incident involving Versova, where bids were allegedly posted and later withdrawn after sellers accepted them, arguing this suggested the company did not actually need the eggs it offered to purchase.
Prosecutors say similar activity continued
The complaint also describes events in August 2023. According to prosecutors, Cal-Maine and Versova completed several private trades at premium prices that were reported to Urner Barry. The pricing service subsequently raised benchmark quotations for several categories of shell eggs.
By late 2024 and early 2025, bird flu remained the public explanation for higher prices as companies discussed restricted supplies and favorable market conditions.
The companies respond
The proposed settlement announced this week would require Cal-Maine, Versova and Hickman's to donate 53 million eggs to food banks and nonprofit organizations, make $3.3 million in payments to participating states, and stop communicating with competitors about bids, pricing strategies and transactions intended to influence benchmark publications, as per the FT report. The settlement still requires court approval.
Cal-Maine has denied wrongdoing, saying its conduct was lawful and that egg prices were affected by bird flu, the COVID-19 pandemic, weather and inflation.
Versova has also denied wrongdoing.
Hickman's was acquired last year by Mantiqueira USA, a joint venture backed by JBS and Mantiqueira. The company has said the alleged conduct occurred before the acquisition.
Urner Barry said it has not been accused of wrongdoing and is not a party to the Justice Department case, adding that it remains committed to providing independent reporting, as per the FT report.
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FAQs
Why are US egg companies under investigation?Prosecutors allege they coordinated bidding strategies that influenced wholesale egg prices.
Which companies are named in the complaint?
Cal-Maine Foods, Versova and Hickman's Egg Ranch.
