Egg producers reach federal and state settlement over allegations of price-fixing

The Department of Justice, in collaboration with a number of states, has reached a tentative agreement with three major egg producers to settle allegations of price manipulation. The settlement follows an investigation by federal antitrust agencies and state attorneys general, which claimed that Cal-Maine Food, Versova/Centrum, and Hickman’s Egg Ranch conspired to artificially inflate egg prices between June 2022 and March 2025, resulting in higher costs for retailers and consumers.

According to the Justice Department, these companies supply eggs to various establishments such as grocery stores, restaurants, and retailers across the United States. Deputy Assistant Attorney General Nicole Sarrine stated in a press release that the settlements aim to maintain competitive egg prices and protect consumers nationwide.

As part of the agreement, the egg producers will be obligated to donate a total of 53 million eggs to food banks and community organizations in states involved in the settlement. Additionally, they will be required to pay the states a sum of $3.3 million. The complaint filed by the Justice Department and the states accuses Cal-Maine, Hickman’s, and Versova of colluding to manipulate egg price quotations to create a false demand, influencing market prices.

Cal-Maine, the nation’s largest egg producer and distributor based in Mississippi, denied any wrongdoing, dismissing the allegations as baseless. Versova, headquartered in Iowa, expressed satisfaction with the resolution of the Department of Justice investigation, emphasizing that no admission of guilt was made. On the other hand, Hickman’s, located in Arizona, did not provide immediate comments on the matter.

The Justice Department indicated that the settlement, subject to court approval, aims to prevent the companies from engaging in anti-competitive practices to influence egg prices. The price of eggs has been a concern for American consumers, particularly after record-high prices were recorded last year due to the avian flu outbreak that devastated poultry farms. Currently, the average cost of a carton of large Grade A eggs stands at $2.19, a significant decrease from $6.23 in March 2025, according to the Federal Reserve Bank of St. Louis.

Cal-Maine attributed the volatility in egg prices to the bird flu and the COVID-19 pandemic. Versova also pointed to the bird flu as a major factor affecting prices, emphasizing that egg farmers do not control wholesale prices as eggs are considered a commodity product. The company stated that the prices fluctuate based on the costs of grain inputs for hen feed, as most of their eggs are sold on grain-based contracts.

In conclusion, the settlement between the Department of Justice, the states, and the egg producers aims to restore fair competition in the egg industry and protect consumers from price manipulation. The agreement highlights the importance of maintaining transparency and accountability in the marketplace to ensure a level playing field for all stakeholders involved.