Apr 30, 2025
It's hardly a secret that Americans have been paying a premium for eggs these past few months. But while consumers are struggling to afford this grocery staple, one egg company is allegedly profiting big time.
Cal-Maine Foods — which calls itself "the largest producer and distributor of fresh shell eggs in the United States" — recently reported a net income of $508.5 million for its most recent fiscal quarter.
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Now, the U.S. Department of Justice (DOJ) is reportedly investigating Cal-Maine in order to determine whether the company is guilty of price fixing.
Straight Arrow News reports the company enjoyed a nearly 250% increase in profits from a year prior, and that Cal-Maine attributes its profits to an 80% rise in the cost of eggs.
Sherman Miller, president and CEO of Cal-Maine Foods, told Business Wire, "The entire Cal-Maine Foods team did an outstanding job in maximizing production through a period of high demand, while operating safely and maintaining diligence on biosecurity measures.
"We were fortunate to have the ability to utilize our existing operational scale and to benefit from recent acquisitions, which helped increase our production capacity in this challenging supply environment."
Is this corporate greed at its worst?
In March of 2025, egg prices in America reached a record high of $6.23 per dozen, according to the Bureau of Labor Statistics. Given that eggs are a staple in many households, consumers had no choice but to pay up.
But now, the DOJ is wondering whether something shady was happening on Cal-Maine’s part. The company, along with others, is being investigated after being accused by advocacy groups of price fixing.
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Price fixing occurs when competing companies enter into an agreement to keep prices intentionally high to boost their profits. Companies tend to have an easier time setting prices high when there’s a shortage of a given commodity.
Cal-Maine claims that it made great progress in addressing the country's egg shortage this past quarter by increasing its amount of layer hens by 14% and investing in safety measures to combat the avian flu, per Straight Arrow News. The company has also since dropped its egg prices and says it’s cooperating with the DOJ investigation.
The company, however, maintains that it didn't engage in any wrongdoing. Rather, it says that higher market prices came as a result of reduced supply during a period of “peak seasonal demand for eggs and egg products,” reports Food Engineering Magazine.
However, this isn't the first time Cal-Maine has faced legal trouble. In 2023, Cal-Maine and other egg producers were found guilty of price fixing and were required to pay out more than $50 million.
But this time around, it’s unclear as to whether there’s any wrongdoing at play. Emily Metz — president and CEO of American Egg Board, which represents egg producers across the country — said that accusing companies of egg price fixing is "misreading of facts and reality," according to ABC News.
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How consumers can cope with soaring egg prices
CBS MoneyWatch reports that wholesale egg prices have fallen 43% since the start of the year. Egg prices at Stew Leonard's, a Northeast grocery chain, have declined recently, and director of sales Andrew Hollis had encouraging words for consumers.
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"We're definitely back to low-price eggs again,” Hollis told CBS MoneyWatch. “There's a lot of relief and plenty of supply."
Still, consumers should be vigilant about tracking egg prices and finding ways to save, especially at a time when grocery prices are high across the board. One good way to save money on eggs is to buy them in bulk. For example, if you have a Costco membership, use it.
You may also be able to save money by purchasing eggs directly from farms, as opposed to buying them at your local supermarket. Local farmers markets could also be an option.
It's also a good idea to review the supermarket circular (which you can typically get online) for every supermarket in your neighborhood before going egg shopping. This should tell you where you can get the lowest price. Apps like Flipp and Instacart can also help you track egg prices across grocers to see where you can find the best deal.
In the meantime, if the cost of eggs is beyond your budget, you may be able to cut back on buying them if you're willing to get creative in the kitchen. Applesauce, for example, can often be used in place of eggs when you're baking. And in some cases, mashed banana can serve as a binding agent if egg prices are too steep for your budget.
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Maurie Backman has been writing professionally for well over a decade. Since becoming a full-time writer, she's produced thousands of articles on topics ranging from Social Security to investing to real estate.
