U.S. Investigates Egg Producers Over Soaring Prices

The Justice Department is in the early stages of investigating major egg producers in the United States over possible antitrust violations as the price of eggs skyrockets, two people familiar with the matter said.

The department’s lawyers are preparing to send civil investigative demands — effectively subpoenas for civil investigations — to several producers, including Cal-Maine Foods and Rose Acre Farms, one of the people said. Investigators are looking at whether the companies are sharing sensitive information about pricing and supply, contributing to a spike in prices.

The inquiry is being run out of the antitrust division’s Chicago office, the people said.

A spokeswoman for the Justice Department declined to comment on the investigation. Cal-Maine and Rose Acre did not immediately respond to emails seeking comment. The Capitol Forum earlier reported the inquiry.

Egg prices began soaring last year, and they quickly became an issue in the presidential campaign. Producers have blamed the spread of avian flu, which has forced them to cull millions of hens, for tighter egg supplies and prices that have surpassed $8 a dozen in some areas.

The Justice Department’s inquiry may not lead to a lawsuit. Some lawmakers and advocacy groups previously called for federal regulators to investigate the industry’s pricing practices.

Roughly 15 percent of the country’s egg-laying chickens have been killed in the past four months, while wholesale egg prices have risen 255 percent, according to data from Expana, which tracks the prices of eggs.