Egg industry under investigation

The Australian Competition and Consumer Commission is reportedly investigating large egg producers on the back of suggestions that they may be manipulating prices.

The questions have followed a letter obtained by the regulator from James Kellaway, managing director of the Australian Egg Corporation Limited (AECL), suggesting that big producers may be manipulating prices, according to Australian Financial Review.

The ACCC has also asked egg producers for an explanation of their moulting practices, which can affect egg supply, the AFR reported. The ACCC, however, has not confirmed the report.

Humane Society International (HSI) said the ACCC is very interested in the workings of the egg industry and the AECL and had been investigating both for some time now.

However, HSI said cartel allegations reported in the media are far more likely to stem from the industry’s practice of killing hens to reduce numbers and subsequent numbers of eggs laid to control prices rather than just forced moulting alone.

“Consumers and hens deserve a better deal,” HSI director Verna Simpson said. “With Egg Corporation, Government and supermarkets determined to bring an end to the true free range industry we are just thankful that ACCC is vigorously investigating and trust that this will bring much needed clarity to the market place.”