A highly contagious strain of bird flu is affecting both chickens and dairy cows in the U.S., leading to the culling of millions of birds and a potential increase in egg prices. While egg prices are expected to rise due to the reduced supply, dairy prices may not be significantly impacted as the virus appears less deadly and contagious in cattle. Despite the outbreak, commercial broiler operations and poultry prices have not been greatly affected, and both eggs and milk remain safe to consume after pasteurization.
A federal jury in Illinois has ruled that several major egg producers, including Cal-Maine Foods, Rose Acre Farms, United Egg Producers, and United States Egg Marketers, conspired to limit the supply of eggs in the U.S. between 2004 and 2008, resulting in inflated prices. The lawsuit, originally filed in 2011, alleged that the producers used various tactics to restrict the domestic supply of eggs. Damages will be determined in a trial scheduled for next week. The case also involves food manufacturers such as Kraft Foods Global, Inc. and The Kellogg Company, who joined as plaintiffs. The family company of an Indiana egg farmer, who is running for the U.S. Senate, is among the suppliers named in the lawsuit.
Kraft, General Mills, and other major food companies have won a verdict in a federal jury trial in Chicago, holding top U.S. egg producers liable for unlawfully inflating prices. The jury found that the egg producers, including Cal-Maine Foods and Rose Acre, had conspired to charge artificially high prices, leading to a second trial to determine damages. Trade associations United Egg Producers and United States Egg Marketers were also found liable. Kraft and the other plaintiffs will argue for damages next week, with the plaintiffs not proposing a specific amount. The defendants deny any wrongdoing.
Kellogg, Kraft, and Nestle likely overpaid for eggs due to a conspiracy by the nation's largest egg producers and two trade groups to restrict supply, according to an Illinois federal jury. The jury found that Cal-Maine Foods, Rose Acre Farms, and the trade groups will have to pay damages to the food companies. The amount of damages will be determined in a future trial. This verdict could encourage other plaintiffs seeking to hold food producers accountable for anticompetitive behavior.
