The U.S. Justice Department and 17 states reached settlement agreements with three major egg producers this week to resolve allegations that the companies illegally colluded for years to raise prices, including when egg costs soared to record highs last year. California was among the states party to the settlement, with implications for San Diego consumers who experienced the price spikes firsthand.
The states and federal government accused Cal-Maine Foods, Versova, and Hickman’s Egg Ranch of a behind-the-scenes arrangement to “artificially inflate the daily price quotations for eggs” between June 2022 and March 2025. The investigation found that the companies coordinated on bids submitted to Urner Barry Publications, a company that runs an index key to determining how much grocery stores, restaurants, and others pay for billions of eggs each year, according to Associated Press reporting.
“When powerful corporations collude behind the scenes to raise prices, working families suffer the costs,” said New York Attorney General Letitia James, who helped lead the investigation. “These egg producers manipulated the market to squeeze even more profit out of consumers and businesses.”
Under the settlements, the three companies will collectively pay $3.3 million and donate 53 million eggs to food banks and nonprofits. Cal-Maine will pay $1.5 million and donate 30 million eggs, Versova will provide 20 million eggs and $800,000, and Hickman’s will contribute 3.25 million eggs and $1 million. The companies must also adopt antitrust compliance programs and cease communicating with competitors on pricing and bidding strategies.
None of the companies admitted wrongdoing. Cal-Maine maintained that the allegations were “baseless” and that its conduct has been legal, though the company’s CEO Sherman Miller said the settlement “enables us to move forward so we can devote our full attention to what matters most: delivering affordable, high-quality eggs and egg-based prepared foods to consumers nationwide,” as AP reported via Local 10.
Average U.S. egg prices soared to a record high of about $6.23 per dozen in March 2025 amid a bird flu epidemic that forced farmers to slaughter millions of egg-laying chickens. Consumer egg prices later tumbled to under $2.20 per dozen as of May 2026 as replenished flocks caught up. The complaint notes that price quotations “dropped significantly” after the companies learned of the Justice Department’s investigation in March 2025.
For San Diego food banks, the donated eggs represent a meaningful contribution. The San Diego Food Bank and other local nonprofits are expected to receive portions of the 53 million eggs, providing protein to families in need across the region.
