In a significant development, three major egg producers in the United States have agreed to settle accusations of price-fixing that allegedly drove up egg prices to unprecedented levels. The U.S. Justice Department, along with 17 states, reached agreements with Cal-Maine Foods, Versova, and Hickman’s Egg Ranch to address claims of illegal price inflation from 2022 to 2025.
Federal and state authorities accused these companies of coordinating their bids to Urner Barry Publications, a crucial entity in determining egg prices for retailers and restaurants. This alleged collusion was said to lead to increased costs for consumers, according to the complaint filed in Iowa earlier this week.
New York Attorney General Letitia James stated, “When powerful corporations collude behind the scenes to raise prices, working families suffer the costs.” She further accused the egg producers of market manipulation aimed at maximizing profits at the expense of consumers.
While the companies involved did not admit to any wrongdoing, they agreed to a settlement totaling $3.3 million and a donation of 53 million eggs to food banks and nonprofits. This resolution also includes commitments to adopt antitrust compliance measures and to avoid discussions with competitors on pricing and bidding strategies.
The settlements, however, await court approval. Omeed A. Assefi from the Justice Department remarked the settlements aim to address conduct that had a prolonged impact on American consumers.
In the backdrop of a bird flu outbreak, the average price of eggs in the U.S. had surged to a record high of about $6.23 per dozen by March 2025. While producers blamed the price hike on the epidemic, critics pointed fingers at the companies’ market control, prompting the government’s investigation.
The complaint also highlighted a notable decrease in price quotations following the Justice Department’s investigation notice. By May 2026, consumer egg prices had fallen to under $2.20 per dozen as poultry stocks recovered, despite ongoing bird flu challenges.
Cal-Maine defended its stance, labeling the allegations as unfounded and emphasizing its lawful conduct. The company also noted its departure from a cooperative with the other producers in May 2024. CEO Sherman Miller stated the settlement allows the company to focus on delivering affordable and quality egg products.
Versova underscored the bird flu’s impact on its operations, arguing that grain cost fluctuations primarily influence egg prices. Hickman’s, recently acquired by Mantiqueira USA, noted the alleged conduct predated their acquisition and expressed a commitment to legal compliance.
Despite the settlements, some groups believe the actions fall short. Farm Action President Angela Huffman criticized the resolution, arguing it lacks significant accountability for the egg producers, who profited substantially during the period.
Financially, Cal-Maine reported a profit of $1.22 billion for the fiscal year 2025. As part of the settlement, the company will pay $1.5 million and donate 30 million eggs. Versova will contribute 20 million eggs and $800,000, while Hickman’s will provide 3.25 million eggs and $1 million.
The states involved in the settlements with New York include Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont, and Wisconsin.
