Australian egg producers accused of anti-competitive conduct

Summary

Some of Australia's largest egg producers, including Sunny Queen, have been accused by the Australian Competition and Consumer Commission (ACCC) of collaborating to limit competition within the sector. This alleged conduct, which encompasses coordination on production volumes and distribution arrangements, could be contributing to elevated egg prices amid ongoing high inflation. The ACCC has initiated Federal Court proceedings against Sunny Queen and eleven other producers, marking its first case since concerted practices were prohibited in 2017.

Analysis

Australian egg producers: Australian egg producers are agricultural businesses that raise hens and supply eggs through retail, wholesale, and food-service channels. The Australian Competition and Consumer Commission alleges that major producers coordinated production, distribution, expansion, and hen-culling decisions to manage perceived oversupply, potentially reducing competition over several years. Conduct: The alleged coordination included production volumes, distribution arrangements, expansion plans, and culling decisions dating back to at least October 2020. Regulation: The ACCC has filed Federal Court proceedings against Sunny Queen and 11 other egg producers and suppliers over alleged cartel and concerted-practice conduct. Legal significance: The case is described as the ACCC's first proceeding alleging concerted practices since that form of cooperation was prohibited in 2017.

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