Justice Department Investigates Egg Industry Price Fixing as Fight Against Cage-Free Progress Begins in Arizona

As reported this week in The Wall Street Journal, the Department of Justice (DOJ) has launched an investigation into potential price fixing in the egg industry. This probe comes at a particularly challenging time for consumers, who are currently facing soaring egg prices due to the mass culling of egg-laying hens in the ongoing bird flu crisis. Adding to this complex situation, industry lobbyists  in Arizona are  attempting to further delay the implementation of–or completely eliminate–the state’s cage-free law, which was set to take effect this year.

Price fixing occurs when companies collude to artificially control prices, rather than allowing natural market forces to determine them. This anti-competitive practice directly harms consumers by forcing them to pay inflated prices for essential goods. In the case of eggs, which can be found in most American households, such practices can significantly impact family budgets and food security.

The investigation is particularly concerning given the egg industry’s concentrated nature. This concentration of market power can make it easier for companies to coordinate pricing strategies at the expense of consumers. In Arizona alone, Hickman’s (so-called) “Family Farms” produces approximately 1 billion eggs annually, representing a significant portion of the state’s egg production. 

The timing of the DOJ investigation is particularly noteworthy as it coincides with industry attempts to roll back farmed animal welfare progress in Arizona. Rather than adapting to meet evolving consumer expectations and animal welfare standards, some industry players are trying to eliminate that state’s cage-free mandate. Hickman’s Family Farms, notorious for its use of prison labor and animal cruelty, appears to be the driver to eliminate the cage-free law it once claimed to support.

At Animal Outlook, we’re no strangers to challenging anti-competitive practices in the food industry. In 2016, we achieved a landmark victory in a class-action lawsuit against the dairy industry, exposing a price-fixing scheme that had artificially inflated milk prices for years. Through this case, we helped secure a $52 million settlement for consumers and exposed how industry consolidation can lead to market manipulation.

The dairy case revealed how industry players had conspired to reduce the nation’s dairy cow herd to drive up prices, even going so far as to kill half a million young cows prematurely. This victory not only provided justice for consumers but also highlighted the interconnection between animal welfare and consumer protection.

The current Department of Justice investigation into the egg industry raises many of the same concerns we exposed in the dairy case. With egg prices having reached historic highs in recent months, it’s crucial to ensure that these increases reflect genuine market conditions rather than illegal coordination among producers. Moreover, Hickman Family Farms’ apparent attempts to eliminate the cage-free law must raise questions about whether the company is acting in consumers’ best interests or in advance of its own at their expense. 

For Arizona residents, we encourage you to reach out to Animal Outlook at ArizonaEggs@animaloutlook.org if you regularly purchase eggs. Your experience as consumers could be valuable in potentially supporting future legal actions. 

Together, we can work toward a more transparent and ethical food system that serves both consumers and animals fairly.