NEW YORK, NY— Three major egg producers will send millions of eggs to food banks across New York after investigators found they illegally coordinated to influence prices, a settlement that will deliver direct relief to families facing high grocery costs.
The first shipment arrived in Brooklyn, where more than 280,000 eggs were delivered to City Harvest for distribution through its network of food partners.
The delivery is part of a multistate settlement involving Cal-Maine Foods, Versova and Hickman's Egg Ranch after a joint investigation by New York Attorney General Letitia James, the U.S. Department of Justice and 16 other states found the companies manipulated egg pricing.
James said the companies secretly communicated beginning as early as 2022 to coordinate bidding activity and influence a daily egg price index used in supply contracts.
The companies allegedly submitted higher bids that affected price quotes published by Urner Barry, a benchmark used throughout the egg industry.
The investigation found the conduct increased costs for retailers and consumers who bought eggs nationwide.
Egg prices climbed in recent years as the industry faced multiple pressures, including outbreaks of highly pathogenic avian influenza, commonly known as bird flu, that forced farmers to kill millions of egg-laying hens.
The loss of laying hens reduced the nation's egg supply at a time when demand remained high, pushing prices higher at grocery stores.
Farmers also faced rising costs for feed, transportation and other expenses that affected the price of producing eggs.
But investigators said supply challenges were not the only factor affecting what consumers paid.
According to the multistate investigation, three major egg producers also took steps to influence pricing by coordinating bids tied to Urner Barry, a benchmark pricing service used in egg supply contracts.
Those benchmark prices are used throughout the egg industry to help set contract prices between suppliers and buyers.
James said manipulating those quotes allowed the companies to increase prices beyond what normal market conditions would have produced.
"It is unacceptable that New Yorkers paid higher prices for eggs because these companies were working together behind the scenes to raise prices," James said. "My office has zero tolerance for big corporations breaking the law to boost their profits at the expense of working families."
Investigators said the companies communicated privately beginning as early as 2022 to coordinate bidding activity and influence daily egg price quotes.
Where Will The Eggs Go?
The companies will provide 53 million eggs to food banks and nonprofit organizations nationwide and pay $3.3 million under the settlement.
New York will receive nearly 5 million eggs, which will be distributed through Feeding New York State.
The eggs will be distributed throughout New York City to families through food pantries and community organizations.
Additional deliveries across New York will continue through mid-October.
The statewide distribution will be managed through Feeding New York State, which oversees the state's network of food banks.
"Protein-rich foods like eggs are among the most requested items by our neighbors experiencing food insecurity," said Elizabeth Cooper, executive director of Feeding New York State.
In addition to providing eggs and paying $3.3 million, the companies agreed to adopt compliance measures designed to prevent future violations.
The settlement was reached by New York, the U.S. Department of Justice and attorneys general from Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont and Wisconsin.
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