ACCC alleges major egg suppliers engaged in cartel

• The Australian Competition and Consumer Commission launched Federal Court proceedings against 12 egg producers and suppliers, alleging widespread cartel conduct and anti-competitive practices.
• The regulator is seeking declarations, financial penalties, injunctions, and legal costs against major market players, including Sunny Queen.
• The ACCC stated that the alleged coordination aimed to manage perceived oversupply by controlling production volumes, distribution, expansion plans, and bird culling since at least October 2020.

The ACCC has commenced civil proceedings in the Federal Court against major supplier Sunny Queen and 11 other egg producers over alleged cartel conduct and anti-competitive practices across Australia since October 2020.

This matter marks the first court case brought by the regulator containing concerted practice allegations since the statutory prohibition was introduced in 2017.

"Our investigation has uncovered alleged widespread anti-competitive conduct in the egg industry that we allege has impacted the supply of eggs to Australian consumers since at least 2020," said ACCC Chair Gina Cass-Gottlieb.

Regulators alleged that Sunny Queen, Doug Hall Poultry, and McLean Farms jointly purchased a Queensland property to block rival suppliers, while Sunny Queen also restricted Kinross Farm from selling eggs to major supermarket chains, including Coles and Woolworths.

Australians consume an average of over 250 eggs per person annually across free-range, cage, and organic categories within a highly concentrated fresh food supply chain.

The watchdog noted that it continues to actively gather intelligence and process anonymous reports to identify illegal market coordination across Australian industries.