Cal-Maine Foods has disclosed it is part of the investigation by the US Department of Justice (DoJ) into the high egg prices seen in the US in recent months.
The company, one of the largest suppliers of eggs in the US, has disclosed that in March, it “received civil investigative demand” linked to what the company called “a widely publicised investigation by the Antitrust Division of the Department of Justice into the causes behind nationwide increases in egg prices”.
Cal-Maine said it is “cooperating with the investigation”. Just Food has approached the publicly listed group for further comment.
Yesterday (10 April), the US Bureau of Labor Statistics reported a 5.9% month-on-month rise in egg prices in March. Over the past year, egg prices have surged by more than 60%, the data shows, amid an outbreak of highly pathogenic avian influenza, or HPAI.
Cal-Maine made the disclosure about the DoJ probe alongside the publication of its third-quarter results for fiscal 2025. The figures for the period, which ended on 1 March, reported an average net price of $4.06 per dozen eggs versus $2.25 a year ago.
In the earnings announcement, Sherman Miller, the president and CEO of Cal-Maine Foods, said: “Dynamic market conditions and HPAI-related supply shortages persisted this quarter.”
Net sales for the quarter rose almost 100% year-on-year to $1.4bn, driven by higher pricing and increased volumes.
Operating income climbed 290% to $635m. Net income stood at $508.5m, compared to $146.7m in the same period of fiscal 2024.
Alongside the earnings announcement, Cal-Maine said it had agreed to acquire Echo Lake Foods, a manufacturer of breakfast foods, for approximately $258m.
Founded in 1941 and owned by the Meinerz family since 1981, Echo Lake produces and distributes a range of ready-to-eat egg-based products and breakfast items.
Cal-Maine reported that Echo Lake generated around $240m in revenue in 2024, with a compound annual growth rate of about 10% over the past five years.
