Blogging About Critters Since 2007

Sunday, November 2, 2008

Egg Companies Accused of Price Collusion

The Justice Department has opened investigations. It's in the Wall Street Journal.

Fresh-egg farmers acted together through a series of export shipments, organized by United Egg Producers, an industry cartel whose 250-plus members include virtually all of the nation's big egg producers. By removing a small fraction of eggs that would have been bound for U.S. sales and arranging instead for their export, United Egg helped tighten domestic supply and drive up the price of eggs across the country, according to newsletters and other documents that United Egg sent to its members.

Not only did they arrange for exports, they also are accused of colluding to limit production and to increase cage sizes so that fewer hens can be kept. (This is actually good for animal welfare, but goes to show that only greed will motivate these bastards to do anything.) Scarcity then leads to high prices.

Wow. Tomato growers are accused of the same thing.

No comments: