Trump’s Division of Justice Investigates the Value of Eggs

By Nina B. Elkadi, Sentient Media

The fee to feed a household in the US has elevated by 50 % for the reason that early days of the pandemic in 2020. Wages haven’t elevated on the identical fee, inflicting many households to really feel burdened by the battle to make ends meet. Nonetheless, firms are discovering methods to make it by; in truth, company income are larger than ever earlier than, together with within the egg business.

A brand new report from Meals & Water Watch particulars how egg corporations have recorded record-profits regardless of the avian flu outbreak. The report regarded on the company income of one of many nation’s largest egg producers, Cal-Maine, and located that regardless of not initially being affected by avian flu, the egg producer jacked up its costs. Despite the fact that the American Southeast “remained free of bird flu in its table egg flocks until January 2025 …retail egg prices in the Southeast rose alongside January 2023’s national price spikes.”

Amanda Starbuck, Analysis Director at Meals & Water Watch, tells Sentient that firms are “profiting off this crisis.” In January, a bunch of Democratic lawmakers wrote to President Donald Trump asking him to research price-fixing within the egg business.

On March 6, the US Division of Justice introduced it is going to be investigating Cal-Maine and different firms for price-fixing. This isn’t the primary time the corporate has been investigated for such actions. In 2023, Cal-Maine and different egg producers had been ordered to pay $53 million after being discovered responsible of price-fixing.

But by mid-March, Elon Musk’s Division of Authorities Effectivity introduced it was taking intention on the DOJ to start reducing prices on the company. Legal professional Normal Pam Bondi has agreed to assist with this effort and the company created a committee to take action: JUST-DOGE. A number of the first cuts being made goal consultants on anti-trust circumstances.

The rise in company income illustrates the flexibility firms have to extend their income in occasions of disaster, the Meals & Water Watch researchers say. Throughout the second quarter of fiscal 12 months 2025, Cal-Maine skilled record-breaking company income and excessive dividends for shareholders. If, and when, avian flu abates, these egg producers may hold costs excessive — except the federal authorities intervenes or shopper curiosity in eggs wanes.

In some areas, just like the Midwest, egg manufacturing was about the identical on the finish of 2024 because it was in the midst of 2024. But costs for a dozen eggs nearly doubled. With out intervention, Starbuck says, firms don’t have an incentive to deliver costs again down, assuming market demand stays at the least fixed.

“Even if we were able to eradicate this disease, prices might go down a little bit, but I don’t foresee us ever going back to the days of a carton of eggs for one dollar,” Starbuck says.

The DOJ investigation is within the “very early stages.” Because the investigation was introduced, egg costs have fallen to their lowest ranges since December in some elements of the nation, a pattern largely being attributed to decreased demand and fewer avian flu outbreaks. Simply as rapidly as they elevated costs, egg producers at the moment are, in-part, responding to market situations pushed by shoppers feeling the squeeze.

This text initially appeared in Sentient at https://sentientmedia.org/trump-investigates-price-of-eggs/.

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This story was initially printed by Sentient Media.

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