WASHINGTON (dpa-AFX) - The U.S. Department of Justice, along with attorneys general from 17 states, have come to settlements with Cal-Maine Foods, Versova, and Hickman's Egg Ranch.
These agreements are in response to allegations that the companies colluded to raise egg prices from June 2022 to March 2025. Officials suggested that the producers were in cahoots when submitting bids to Urner Barry Publications, which is known for its pricing index that helps determine wholesale egg prices, leading to higher prices for consumers.
In the proposed settlements, none of the firms admitted any wrongdoing. Still, they have agreed to collectively pay $3.3 million and donate 53 million eggs to food banks and nonprofit groups. Cal-Maine will shell out $1.5 million and deliver 30 million eggs, Versova is set to pay $800,000 and provide 20 million eggs, while Hickman's will contribute $1 million and 3.25 million eggs.
On top of that, the companies are required to set up antitrust compliance programs and stop any communication with competitors about pricing and bidding strategies. These settlements have to get the green light from the court.
The investigation was triggered during a time when U.S. egg prices hit a record average of around $6.23 per dozen in March 2025, largely due to a bird flu outbreak that cut down on supply. Regulators claimed the companies were using coordinated pricing tactics to push prices even higher.
Interestingly, the wholesale egg prices dropped after the firms learned about the federal probe in March 2025, while retail prices eventually dipped below $2.20 per dozen as egg availability improved.
Cal-Maine called the allegations unfounded, claiming they had no basis, while Versova argued that producers have no control over wholesale egg prices.
Hickman's parent company mentioned that the alleged actions took place before they acquired the business. Consumer advocacy group Farm Action pointed out that the settlements don't hold the companies sufficiently accountable, especially since Cal-Maine reported a net income of $1.22 billion in fiscal 2025, despite the skyrocketing egg prices.
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