The U.S. Department of Justice has begun investigating the sharp rise in egg prices, which are expected to increase by over 40% in 2025. The Justice Department has asked egg producers to keep documents related to their pricing discussions with customers, competitors, and Expana, a company that tracks egg prices. Investigators want to see if producers have worked together to raise prices or limit supply.
Egg prices have soared due to the worst avian flu outbreak in U.S. history. Last year, 50 million egg-laying hens died, and another 14 million have died this year. The average price for a dozen eggs is now $6.85, but many stores are selling them for $10 or more.
The Justice Department is looking into whether major producers have colluded to raise prices. Cal-Maine Foods, a large egg producer, has seen its profits rise significantly, with its stock increasing by 50% over the past year.
The investigation is in its early stages. It is not clear if it will be handled by the civil or criminal division of the Justice Department.
The high cost of eggs is also affecting businesses. Some restaurants are adding extra charges for egg dishes, and grocery stores are limiting how many cartons customers can buy.
The avian flu outbreak has led to a shortage of eggs, causing prices to rise. The U.S. Department of Agriculture reports that demand for eggs remains strong, but supply is low.
To address the issue, Agriculture Secretary Brooke Rollins announced plans to invest in biosecurity measures and support farmers who lost hens. The administration is also considering importing eggs from other countries.
Farmers are struggling to replace their flocks because even young birds are dying from the flu. Recovery could take several months to a year. Recently, there have been no significant bird flu outbreaks, which has helped improve egg availability and ease price pressures.
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