Department of Justice opens investigation into egg producers as prices soar

TULARE COUNTY, Calif. (KFSN) -- As egg prices continue to soar, an investigation by the Department of Justice is underway to dig deeper into the escalating cost and who is profiting.

The national egg shortage has hit everyone from restaurant owners to consumers.

"$10 to $14 for a dozen eggs is outrageous. People like me who are on fixed incomes and senior citizens cannot afford a dozen eggs," said Exeter local Stephanie Sera. "We can't even afford a half a dozen."

It's the reality for millions across the nation following the outbreak of bird flu.

Meanwhile, an investigation by the Department of Justice is underway into the price spike of eggs.

The findings should determine whether larger corporations are profiting from the price increase, according to an ABC News source.

The gross profits for Cal-Maine Foods, the largest egg producer in the country, are up 342% compared to last year.

In the past, the company has been ordered by a court to pay millions over a price-fixing scheme.

During the last spike in bird flu from 2022 to 2023, the company reported increased profits of over $1 billion.

The company has said increases primarily resulted from higher average egg selling prices and other input costs.

They lost during a jury trial and had to pay millions in fines over the scheme.

All this while bird flu has wiped out millions of hens, leading to a nationwide egg shortage.

State Senator, Melissa Hurtado says DOJ investigations like these are necessary.

"We need to hold bad corporate actors accountable because they are increasing the price of the most basic things that we need like food," Hurtado explained. "If these investigations don't happen, if there is no accountability,y we are all going to continue struggling from these rising costs."

Just last week, Hurtado held an informational session in Sacramento on the bird flu.

It was a full circle moment, as efforts to encourage leaders to work together were part of legislation she pushed years ago.

"We wanted to make sure to bring all the stakeholders together to look at what the response has been, what more can be potentially done and what is also in the works," Hurtado said.

Some of those concerns are public health and the prices of eggs.

For Scotty's Donuts in Exeter, Manager Darlene Tuy says they are taking the hit and have yet to increase their menu items.

But what consumers like Sera can't avoid are those prices at the grocery stores.

Hurtado has mentioned that they will continue to monitor bird flu and work closely with industry leaders to provide more updates on where those impacts stand locally.

To watch the latest informational session on bird flu, click here.

For news updates, follow Kassandra Gutierrez on Facebook, Twitter and Instagram.