Egg producers to give 53 million eggs

Three egg producers agreed to donate 53 million eggs to food banks in 17 states after federal and state authorities said the companies coordinated to influence benchmark egg-price quotes used in supply contracts. New York Attorney General Letitia James announced the settlement on June 29, saying the agreement also includes $3.3 million in payments to the states and changes to business practices. The U.S. Justice Department said the case was filed with a coalition of states and accused the companies of coordinated benchmark manipulation. The companies were Cal-Maine Foods, Rose Acre Farms and Hickman’s Egg Ranch, according to the state and federal announcements. ### Which companies are in the settlement, and what did they agree to do? The June 29 settlement covers Cal-Maine Foods, Rose Acre Farms and Hickman’s Egg Ranch, according to the New York attorney general’s office and the Justice Department. The companies agreed to provide eggs to food banks and related nonprofit groups in participating states and to make changes aimed at preventing similar conduct in the future. (ag.ny.gov) The 53 million-egg figure is the headline term, but it was not the only one. New York’s office said the producers will also pay $3.3 million to the states. The Straits Times account omitted that cash component, but state and federal releases included it. ### What were prosecutors and state attorneys general accusing them of? The Justice Department said the complaint alleged the producers coordinated to manipulate benchmark price quotes published by Urner Barry, a pricing service widely used in egg supply contracts. (ag.ny.gov) Those benchmark quotes can affect what businesses and other buyers pay for eggs. New York Attorney General Letitia James said investigators found the companies “collud[ed] behind the scenes to raise prices,” while Minnesota Attorney General Keith Ellison said the scheme raised costs for consumers and businesses. Those characterizations came from the attorneys general; the settlement resolves the case without a trial on the merits. (justice.gov) ### Which states were involved? The federal case page lists the United States and 17 plaintiff states: Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, New York, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont and Wisconsin. The Justice Department said it filed the complaint alongside those states. New York’s office has separately publicized local allocations from the settlement. (ag.ny.gov) It said New York’s share is 4,968,000 eggs. Minnesota also said the multistate resolution secured “more than 50 million eggs” nationwide and $3.3 million. ### How are the eggs actually being distributed? City Harvest in New York has already begun receiving eggs under the settlement, according to the New York attorney general’s office. (justice.gov) In one release, James said 23,400 cartons of a dozen eggs were delivered to City Harvest as the first in a series of shipments to food banks statewide. A separate New York release said Rochester-area families would receive more than 280,000 eggs through Foodlink as part of the same settlement. (ag.ny.gov) Those notices indicate the broader 53 million-egg total is being distributed through state-by-state deliveries rather than in a single transfer. ### What happens next? The Justice Department said the proposed settlements were filed in federal court and require the companies to comply with the terms set out in the agreements. (ag.ny.gov) One court filing tied to Hickman’s specifies donations to food banks or related nonprofits in states where it does business. Food banks in participating states are the next named recipients. New York’s office said additional deliveries will continue beyond the first City Harvest shipment, and other states have issued similar notices about their expected shares under the multistate agreement. (ag.ny.gov 1) (ag.ny.gov 2) (justice.gov)