AUSTIN, Texas – Three national egg producers will be donating over seven million eggs to food banks across Texas after an investigation discovered that they were conspiring to increase egg prices.
Texas Attorney General Ken Paxton secured settlements with the companies, requiring them to donate more than 53 million eggs combined to food banks and other community organizations in the involved states, including Texas.
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Additionally, the companies must establish safeguards to prevent similar activity for the future, including appointing compliance officers who will ensure that the companies adhere to their settlements.
The egg producers, Cal-Maine Foods, Versova and Hickman’s Egg Ranch, were found to have coordinated their bidding activity in order to push for prices to be higher. The bidding behavior prompted Urner Barry, a benchmark pricing service used in egg supply contracts, to raise the prices.
Antitrust claims were brought forward by attorney generals across 17 states, leading to an investigation led by Paxton’s team, the U.S. Department of Justice, and several states.
“This settlement serves as another reform that we have secured to prevent price gouging and unlawful conduct that hurts American and their wallets,” Paxton said in a press release sent to KPRC 2.
The settlements are part of Paxton’s effort to protect Texans from anticompetitive conduct within the agricultural market.
Previous actions from Paxton include a settlement with Cal-Maine Foods, where the company had to donate over two million eggs to food banks, and a resolution with Agri Stats, Inc. following their exchange of confidential cost and pricing information.
Paxton has also launched an investigation into anticompetitive behavior among meatpackers in the beef industry.
“I will continue to hold any corporation accountable if they violate our laws to raise prices on Texans,” Paxton said.