An advocacy group named Farm Action has accused egg suppliers of engaging in a “collusive scheme” to keep egg prices artificially high in order to maximize profits.
The group has written a letter to the Federal Trade Commission (FTC) asking for an investigation into Cal-Maine Foods and Rose Acre Farms for “price gouging” and “price coordination.”
The group claims that egg suppliers saw a 40% increase in profits last year and are taking advantage of the avian flu and inflation to make excessive profits.
However, Cal-Maine Foods, one of the largest egg producers in the US, denied these allegations, stating that increasing costs of labor, hen feed, and fuel have contributed to the rise in egg production costs.
Despite the push from Farm Action, economists believe that normal market forces, rather than any wrongdoing, are responsible for the surge in egg prices.