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.
According to the Justice Department complaint, however, investigators believe the market was influenced by actions taken by several major producers that allegedly helped prevent wholesale prices from falling, as per a Financial Times report.
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.
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Prosecutors also describe an incident involving Versova, where bids were allegedly posted and later withdrawn after sellers accepted them, arguing this suggested the company did not actually need the eggs it offered to purchase.