The Department of Justice under President Trump has officially launched an investigation into the staggering surge in egg prices, which is expected to rise by more than 40% in 2025.
According to a Wall Street Journal report, the DOJ has sent letters to major egg producers, demanding they preserve documents related to their pricing discussions with customers and competitors, as well as communications with Expana—formerly Urner Barry—a business publisher that tracks egg prices.
The investigation appears to be focused on determining whether major egg companies colluded to restrict supply and artificially inflate prices while raking in record-breaking profits.
The Biden administration’s economic disaster has already led to a crippling increase in food prices that have burdened American families. When Biden took office in January 2021, the average cost of a dozen eggs was just $1.47.
Fast forward to December 2024, and that same carton costs $4.15—a nearly 200% increase, according to the Federal Reserve of St. Louis.
Now, with some stores pricing a dozen eggs at $10 or higher, the Trump administration is stepping in to determine whether corporate price gouging has worsened the crisis.
The U.S. Department of Agriculture’s latest data indicates that the national average price of eggs has soared to an alarming $6.85.
According to ABC7, one company that has greatly benefited from this crisis is Cal-Maine Foods, the largest producer of fresh eggs in the United States.
Despite widespread claims of supply chain issues and bird flu outbreaks, Cal-Maine has seen its stock price skyrocket by over 50% in the last year as profits surged.
Farm Action, a farm advocacy group that has been vocal about corporate greed, confirmed in a Friday statement that sources inside the DOJ say a formal investigation is underway.
Read the press release:
Following Farm Action’s February 2025 letter to the Department of Justice (DOJ) and Federal Trade Commission (FTC) exposing excessive corporate profits, industry consolidation, and likely egg supply restrictions, the DOJ has opened an antitrust investigation into the industry. Farm Action initially brought these issues to the attention of the enforcement agencies and the public in a January 2023 letter.
In response to the news of the investigation, Farm Action issued the following statement:
“We applaud the Department of Justice’s action to address the skyrocketing price of eggs. Every American has felt the financial pain caused by the power of the monopolistic egg industry. While avian flu is real, it is no excuse for the price being charged at the grocery store for one of the country’s staples. While Farm Action’s analysis demonstrates likely antitrust abuses by the dominant egg-producing corporations, the DOJ has the legal authority to take the deep dive into the industry that is required to get to the bottom of this abuse, and they have the power to bring justice on behalf of the American people.”
While avian flu has been cited as the primary driver of skyrocketing egg prices, its actual impact on production has been minimal. Instead, dominant egg producers—particularly Cal-Maine Foods—have leveraged the crisis to raise prices, amass record profits, and consolidate market power. The slow recovery in flock size, despite historically high prices, further suggests coordinated efforts to restrict supply and sustain inflated prices.
Key Pricing Facts:
- The wholesale price of Grade-A, Large, White, Shell Eggs surged from around $0.50–$1.30 per dozen in 2021 to $6.00–$8.00 per dozen today.
- Cal-Maine Foods, which controls 20% of the egg market, increased its gross profits by 237% between FY21 and FY24. Between FY21 and FY23, their gross profits shot up by 646%.
- Cal-Maine has made more in a single quarter than they made in an entire year prior to the 2022 avian flu outbreak.
Evidence indicates that by not increasing their supply, the five dominant egg firms are forcing prices to stay high while reporting dramatic profit increases and level sales. These same firms are then using their increased profits to acquire their competition, further driving market consolidation instead of investing in replenishing or expanding their flocks. During the 2015 avian flu outbreak, the national flock numbers were recovered within eight months, yet this time around, a recovery has still not been achieved even though it could have been.
Key Production Facts:
- In a month-to-month comparison to 2021, the egg-laying flock was, on average, only 3.82% smaller in each month of 2022, 3.16% smaller in each month of 2023, and 5.18% smaller in each month of 2024.
- Cal-Maine egg production has remained stable at approximately 1.1 billion dozen eggs sold annually from 2021 to 2024.
- Production of eggs in the U.S. has not dipped below per capita consumption of eggs in any year between 2021 and the present.
In addition, another change from the 2015 epidemic is that entry into the market has become significantly harder due to the highly concentrated nature of the breeder supply chain. Today there are just two private European corporations controlling the breeding of an estimated 90% of the world’s egg-layer hens, and Cal-Maine, one of the largest egg producers, controls its own breeder flock. This impedes the ability of new competitors to enter the market and increase supply to help stabilize prices.
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