The US Department of Justice (DOJ) has launched an investigation into the sharp rise in egg prices, which have surged in recent months. Federal investigators are examining whether major egg producers colluded to manipulate prices or restrict supply, as households and businesses struggle with the cost of a staple food item.
Egg prices have increased significantly, with reports indicating that a dozen eggs are selling for as much as $10 in some areas. While the egg industry attributes the surge to an ongoing avian flu crisis, authorities are scrutinising whether companies exploited market conditions for financial gain.
Justice Department Probes Potential Egg Price Manipulation
The DOJ has instructed egg producers to preserve documents related to pricing discussions with customers and competitors, according to the Wall Street Journal.
This includes communications with Expana (formerly Urner Barry), a price-reporting agency that tracks egg costs. Federal investigators are particularly focused on whether companies colluded to inflate prices or artificially restrict supply.
The probe follows concerns that some producers may have taken advantage of market instability.
According to the US Department of Agriculture (USDA), the price of eggs has skyrocketed due to the worst avian flu outbreak in US history, which led to the deaths of more than 50 million egg-laying hens in 2024. Since the start of 2025, another 14 million birds have been lost to the virus.
Despite this, Cal-Maine Foods, the largest US egg producer, has reported rising profits amid the crisis. The company’s stock has gained 50% in the past year, leading to speculation about whether price hikes were purely driven by supply shortages or if market manipulation played a role.
It remains unclear whether the investigation falls under civil or criminal enforcement, and the DOJ has yet to make any formal allegations. According to multiple media reports, the inquiry is still in its early stages, and investigators are gathering information from major industry players.
Government Considers Policy Responses as Consumers Face Higher Costs
The rising cost of eggs has led to political and economic concerns, prompting discussions about policy responses. Some grocery chains, including Trader Joe’s, have introduced limits on the number of egg cartons customers can purchase. Meanwhile, restaurants such as Waffle House have imposed surcharges to offset the increased cost of eggs.
The Biden administration has proposed a five-part strategy to address the crisis. According to Agriculture Secretary Brooke Rollins, the government plans to allocate $1 billion to stabilise the egg market. This includes $500 million for biosecurity measures at egg farms and $400 million in compensation for farmers who lost flocks to avian flu.
Despite these measures, 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.
However, USDA data indicates that no significant bird flu outbreaks have been reported in the past two weeks, potentially offering relief to the strained egg supply chain.
