Bipartisan pair of senators applaud DOJ investigation into egg producers

(WASHINGTON) -- A bipartisan pair of senators applauded the Justice Department's ongoing investigation into major egg producers over rising prices and called on the department to look even further into the issue in a letter to Assistant Attorney General Gail Slater late Thursday evening.

"We write to express support for the Department of Justice's reported investigation into anticompetitive practices in the U.S. egg industry," Democratic Sen. Elizabeth Warren and Republican Sen. Jim Banks wrote. "As you are aware, the sustained increase in egg prices has placed a significant financial strain on American families, particularly workingclass households. While egg producers and trade associations point to recent avian flu outbreaks as the cause of high prices, we are concerned that record high egg prices reflect noncompetitive behavior among large producers."

ABC News reported in March that the Department of Justice was in the early stages of investigating major egg producers over soaring egg prices. Sources told ABC News at the time that department investigators were looking into whether the major egg companies were sharing information about supply and pricing, possibly contributing to price increases.

The average retail price of a dozen eggs climbed from $4.95 in January to $6.22 in March, the most recent month for which data is available, per Bureau of Labor Statistics data. That amounts to a 25% increase in consumer cost.

By contrast, wholesale prices of eggs are falling. The average price of a dozen large white eggs was $3.69 over the week ending May 3, the most recent week available, according to Department of Agriculture data. Over the week ending Jan. 17 -- the last week of data before Trump took office -- the average price of a dozen large white eggs stood at $6.14, data showed. That's a nearly 40% decline.

Egg producers, including the industry's trade association, have said that the hike in consumer egg costs is due to the avian flu. But in their letter, the senators cast doubt on this claim and encourage the Department of Justice to continue its efforts to determine whether "noncompetitive behavior among large producers" could be to blame.

"Egg prices began to drop from their record peaks only after the Department of Justice (DOJ) launched an investigation into whether large egg producers had engaged in anticompetitive practices to raise egg prices or restrict egg supply," Banks and Warren write. "Large egg producers and trade associations have previously been found liable for price fixing. Given this history, we urge DOJ to thoroughly review whether recent trends in egg prices reflect impermissible coordination among egg producers and trade associations."

In a statement to ABC News, Warren said Americans deserve answers over the cause of rising cost of eggs at the grocery store.

"While rising egg prices are hurting working families, giant egg producers are raking in record profits. Americans deserve to know if those sky-high prices are the result of out-of-control corporate greed. We're pressing the Justice Department to get answers," Warren said.

Banks said the egg industry is "long overdue" for an antitrust investigation.

"America’s egg industry has been controlled by a handful of companies for years, and it’s long overdue for an antitrust investigation to bring down prices and create more competition," Banks said. "I fully support the Department of Justice’s probe into whether these companies have exploited the avian flu outbreak to manipulate prices.”

The ballooning cost of eggs was an ongoing political flashpoint during the 2024 presidential race. Then-candidate Donald Trump made lowering the cost of groceries a cornerstone of his campaign. Since returning to the Oval Office, he's often spoken about egg prices and in recent days, he's touted repeatedly that egg prices are lower because of his leadership.

"Gas is down, gasoline is down, energy is down, groceries are down, eggs are down. Eggs, thank you very much. But eggs are down," Trump said during remarks in the Oval office on Thursday.

Warren and Banks say the cost of eggs continues to be a burden on American families.

"The sustained increase in egg prices has placed a significant financial strain on American families, particularly workingclass households," they write. "Eggs have long been an affordable staple in Americans' diets. Yet, the cost of eggs reached an unprecedented high this year."

The senators said that they "support" the DOJ investigation into the behavior of egg producers and urged the agency to consider whether a "precipitous drop" in egg prices just "days" after news of the investigation broke suggest that egg producers had conspired to artificially inflate prices.

They also seek additional information from DOJ by mid-May about whether egg prices can be reasonably explained by bird flu, what sort of profit increases were seen by large egg producers, and whether DOJ analysis shows a sudden price decrease in eggs following the announcement of its investigation.

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