Consumer watchdog takes egg 'cartel' to court
Sunny Queen and 11 other egg businesses coordinated on production and supply decisions, likely substantially reducing competition for many years, the ACCC alleges.
The Australian Competition and Consumer Commission (ACCC) has initiated legal proceedings against 12 egg producers and suppliers, alleging they engaged in anti-competitive practices to control production and distribution of eggs in Australia since at least 2020. Sunny Queen, Australia's largest egg supplier, along with 11 other entities, is accused of coordinating decisions on production volumes, distribution, expansion plans, and culling to limit competition.
The ACCC claims this conduct substantially reduced competition for many years, leading to less competitive prices for consumers. The regulator alleges that Sunny Queen and other companies purchased a property in Queensland to prevent rival suppliers from acquiring it, which, in turn, limited Kinross Farm's ability to sell its eggs to major retailers like Coles, Woolworths, Aldi, Metcash, or Costco.
Sunny Queen denies all allegations and intends to defend the proceedings. The ACCC's chair, Gina Cass-Gottlieb, emphasized that eggs are a vital household staple, and the alleged actions could result in reduced consumer choice and lower prices.
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