Investigation Opened by Justice Department into Rising Egg Prices

gnificantly, with some reports indicating that a dozen eggs are being sold for as high as $10 in certain areas. While the egg industry attributes this surge to an ongoing avian flu crisis, authorities are closely scrutinizing whether companies took advantage of market conditions for financial gain.

The DOJ has initiated an investigation instructing egg producers to preserve documents related to pricing discussions with customers and competitors. This includes communications with Expana, a price-reporting agency that tracks egg costs. Federal investigators are particularly interested in whether companies colluded to inflate prices or artificially restrict supply.

This investigation comes amidst concerns that some producers may have exploited market instability. The US Department of Agriculture (USDA) attributes the spike in egg prices to the avian flu outbreak in 2024, which resulted in the deaths of over 50 million egg-laying hens. Additionally, since the beginning of 2025, another 14 million birds have been lost to the virus.

Amidst this crisis, the largest US egg producer, Cal-Maine Foods, has reported a rise in profits. The company’s stock has soared by 50% in the past year, leading to speculation about whether price hikes were solely caused by supply shortages or if market manipulation played a role. It is currently unclear whether the DOJ’s investigation falls under civil or criminal enforcement, with no formal allegations made yet.

The investigation is still in its initial stages, with federal investigators gathering information from major industry players. As consumers face elevated egg prices, discussions about the economic and political impacts are emerging. Some grocery chains have implemented limits on the number of egg cartons customers can purchase, while restaurants like Waffle House have imposed surcharges to offset the increased egg costs.

In response to the crisis, the Biden administration has proposed a five-part strategy to address the situation. The government plans to allocate $1 billion to stabilize the egg market, including $500 million for biosecurity measures at egg farms and $400 million in compensation for farmers who lost flocks to the avian flu.

Although these measures have been proposed, the long-term outlook for egg prices remains uncertain. According to Emily Metz of the American Egg Board, egg production may take six months to a year to recover due to continued outbreaks affecting young birds. Currently, USDA data indicates no significant bird flu outbreaks in the past two weeks, potentially providing relief to the strained egg supply chain.