More than 280,000 eggs will be distributed to families across the Rochester region following a multistate settlement with three major egg producers accused of illegally coordinating to drive up egg prices.
New York Attorney General Letitia James announced Tuesday that 23,400 cartons of eggs — 280,800 eggs total — were delivered to Foodlink in Rochester.
Why are 280,000 eggs being donated to Foodlink?
The delivery is part of a multistate settlement involving Cal-Maine Foods, Versova/Centrum and Hickman's Egg Ranch following an investigation into alleged egg price fixing.
The investigation, led by the New York Attorney General's Office and the U.S. Department of Justice, found that the companies coordinated their bidding strategies to influence a daily egg price index used in contracts across
the industry.
According to the investigation, the companies submitted artificially inflated bids to manipulate price quotes published by Urner Barry, a widely used egg-pricing service. The companies then withdrew the bids after the prices were influenced.
The alleged scheme artificially increased the prices paid by retailers and consumers nationwide.
How many eggs will New York receive?
Under the settlements, the three companies will provide 53 million eggs to food banks and nonprofit organizations across 17 participating states.
New York will receive 4,968,000 eggs. The eggs will be distributed through Feeding New York, the statewide network overseeing the state's food banks.
The Rochester delivery is the second in a series of egg deliveries to food banks across New York. Statewide deliveries are expected to continue through mid-October.
In addition to the egg donations, the companies will pay a combined $3.3 million to the participating states and implement measures designed to prevent future illegal coordination.
How will Foodlink distribute the eggs?
Foodlink will distribute the eggs through its network of food assistance programs and community partners serving 10 counties across the Rochester and Finger Lakes region.
"We are grateful to receive this delivery of eggs as the cost of groceries, gas, and other basic needs continue to rise and impact the people we serve," Foodlink CEO Julia Tedesco said.
The organization said the donation will provide a protein-rich food source to thousands of people in the region.
What did the investigation find?
The multistate investigation found that the three egg producers began coordinating their bidding strategies at least as early as 2022 in an effort to influence the daily egg prices reported by Urner Barry.
The companies allegedly used sham bids at artificially inflated prices to distort the benchmark, with the goal of increasing the prices paid by retailers and consumers.
The settlement involved the attorneys general of 17 states, including New York, as well as the Justice Department.
"Price fixing of any kind is not tolerated in New York, or across our nation," James said. "I am proud to secure this delivery of eggs for families in need across the Rochester area."
The companies have denied wrongdoing as part of the settlement.
This article originally appeared on Rochester Democrat and Chronicle: 280,000 eggs delivered to Rochester after price-fixing settlement
