The Real Reason Eggs Got So Expensive, According to a New Lawsuit

Hint: Maybe it wasn't the bird flu after all.

Our wallets have felt the pinch of rising egg prices for more than a year now. As consumers, we aren’t the only ones.

A dozen years ago this month, Kellogg Co., General Mills Inc., Nestle USA Inc. and a division of Kraft Heinz Co. filed an anti-trust lawsuit against a baker’s dozen of defendants, including egg producers and trade groups. The lawsuit, which dates back to 2011, claims that the defendants inflated the price of eggs from the late-1990s through at least 2008, resulting in higher production costs of foods like cereals, waffles and cake mixes, according to an article in Bloomberg Law.

New Ruling In Egg Anti-Trust Lawsuit

Previous rulings found in favor of the defendants, but on Friday an Illinois federal jury found in favor of the plaintiffs, determining that they “for years likely overpaid for eggs because the nation’s largest producers and two trade groups conspired to restrict the supply,” according to the Bloomberg Law article. As a result of the ruling, two egg industry trade groups and two of the largest egg producers—Cal-Maine Foods Inc. and Rose Acre Farms Inc.—will have to pay damages to the defendants.

“We are incredibly pleased by the jury’s decision,” Brandon Fox, a Jenner & Block LLP partner representing the food companies, told Bloomberg Law. “For the first time, the defendants have been held liable for their antitrust violations. We are now going to turn our attention to the damages phase.”

A statement emailed to Allrecipes from defendant Rose Acre Farms reads:

"Rose Acre Farms is disappointed—and strongly disagrees—with the jury’s verdict and damages award, which contradicts the jury decisions in the two previous trials (with other plaintiffs) on these same issues, which resulted in defense victories.

 Rose Acre has and continues to steadfastly deny being part of any anticompetitive egg price-fixing conspiracy, and we will continue to explore and consider all legal options, including post-trial relief and appeal. We remain committed, as we have over the past 70 years, to producing the highest quality eggs and egg products for our valued customers. We pride ourselves on the small-town values of character, integrity and service.”

How Will Does the New Ruling Affect Egg Prices for Consumers?

What does this judgement mean for consumers? According to consumer advocate Edgar Dworsky, founder and editor of Consumer World, not much.

“This case resolves an anti-trust issue that began almost 20 years ago but will not likely have an effect either directly on consumers or today's egg prices,” Dworsky tells Allrecipes. “The companies that sued will collect whatever damages the jury decides to award, but I would not expect that to trickle down to shoppers.”

There is some good news for us grocery shoppers, though: the U.S. Bureau of Labor Statistics' Consumer Price Index reports that October’s egg prices were 22% less than prices we paid in October 2022.

We’ll take it, especially with the holiday baking season upon us.

Read the original article on All Recipes.