Justice Department: Egg Producers Used Market Dominance to Raise Prices

Some of the largest egg producers have agreed to pay $3.3 million and donate 53 million eggs to food banks and nonprofits after reaching a tentative settlement agreement with the U.S. Justice Department and 17 states. The settlement could resolve allegations that the companies -- using their massive egg producing capacity – colluded to illegally raise egg prices at a time when the United States dealt with the spread of avian influenza.

The three companies, according to the complaint, worked with each other to coordinate price bids to Urner Barry Productions, a company that sets the standard value for agricultural commodities including eggs. That price index determines the cost for grocery stores and restaurants.

Here are the three companies involved in the case:

• Cal-Maine Foods – Based in Ridgeland, Mississippi. Sells eggs under different brand names, including Eggland’s Best, Land O’Lakes, Farmhouse Eggs, Sunups, Sunny Meadow, and 4-Grain.

• Versova Management Cooperative– Minnesota cooperative association headquartered in Sioux Center, Iowa. Manages Center Fresh Group, Centrum Valley Farms, Hawkeye Pride Egg Farm, Iowa Cage-Free, Ovation Farms, and Trillium Farms.  

• Hickman’s Egg Ranch – Located in Buckeye, Arizona.

Egg producers accused of working together to raise prices

The complaint alleged that the egg producers’ actions raised egg prices for years, including during the record high surge in 2025. Most of the blame at the time for the high prices usually focused on avian influenza that led to the culling of millions of hens across the United States and reduced available egg supplies.  

"Since many of Defendants’ contracts with retailers incorporate prices based on Urner Barry’s price quotations, an increase in Urner Barry’s price quotations leads to higher prices for eggs sold to retailers (and thus higher prices for eggs sold to consumers)," the DOJ complaint states.

RELATED: These six U.S. states dealt with rising confirmed cases of Highly Pathogenic Avian Influenza in late 2025.

Here are the 17 states involved in the case:

• Arizona

• California

• Colorado

• Connecticut

• Florida

• Hawaii

• Iowa

• Maryland

• Minnesota

• New York

• North Carolina

• Ohio

• Pennsylvania

• Texas

• Utah

• Vermont

• Wisconsin

The case concentrated on the period between June 2022 and March 2025.

Cal-Maine Foods’ profits

Cal-Maine’s profits rose by more than 300% year-over-year from first quarter of 2024 to first quarter of 2025. And those profits increased nearly 800% over a three-year period starting when the bird flu outbreak began in February 20222, according to The Guardian. 

Farm Action criticizes egg producers’ settlement

Those profits drew the ire of Joe Maxwell, former Missouri lieutenant governor, who later founded the group, Farm Action.

He said that Cal-Maine, for example, made more than $1 billion in profits. The company’s share of the overall $3.3 million settlement would be $1.5 million. Maxwell said that is not nearly enough to offset the increase in costs for consumers.

“The fine, the penalty, the settlement amount is $1.5 million (dollars). One-point-two billion profits from one company, and they’re going to settle for 1.5 million? That’s not even a slap on the back of the hand,” Maxwell told Radio Iowa.

He also told Radio Iowa that eggs are a common food for many families, so that means that a lot of people suffered because of the three companies’ practices.

“Almost every family eats them, almost every family paid a price, and yet this settlement gives them nothing,” Maxwell said.

Cal-Maine Foods’ response to egg pricing settlement

Cal-Maine Foods did not admit any wrongdoing in agreeing to the settlement.

"We are pleased that this agreement enables us to move forward so we can devote our full attention to what matters most: delivering affordable, high-quality eggs and egg-based prepared foods to consumers nationwide," said Sherman Miller, president and CEO of Cal-Maine Foods, according to WATTPoultry. 

RELATED: Farm Action founder Joe Maxwell told American Farmland Owner why he believes so strongly in Country of Origin Labeling.