States begin distributing 53 million eggs under nationwide antitrust settlement

  • Three egg producers agreed to distribute 53 million eggs through state food banks and nonprofits.
  • Texas plans to send 7 million eggs across 17 food banks, while North Carolina expects nearly 3 million.
  • The June settlement also requires producers to pay plaintiff states $3.3 million.

More than a dozen states have begun distributing 53 million free eggs through food banks and nonprofits under a June antitrust settlement involving Cal-Maine, Versova and Hickman’s egg businesses. The Justice Department and 17 states alleged that the producers shared information and coordinated bids submitted to Urner Barry Publications, whose pricing index is used by grocery stores and restaurants, helping inflate egg prices. The companies did not admit wrongdoing and maintained they acted legally. North Carolina’s distribution includes 270,000 eggs for Second Harvest Food Bank of Metrolina in Charlotte and nearly 3 million eggs statewide, while Texas plans to provide 7 million eggs through 17 food banks. Arizona has announced a similar program. The producers will also pay $3.3 million to the plaintiff states and face enhanced antitrust compliance scrutiny. Legal experts say distributing large quantities of perishable food creates significant administrative and refrigeration challenges for states and food banks.

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