Egg Producers to Supply NYC Food Banks Following Price-Fixing Settlement

New York City food banks are set to receive a significant influx of supplies as part of a legal settlement involving three major national egg producers. Cal-Maine, Versova, and Hickman’s Egg Ranch have agreed to distribute 280,000 eggs throughout the five boroughs, with the first shipment arriving at Brooklyn’s City Harvest.

The distribution follows a multi-state investigation led by the U.S. Department of Justice and New York Attorney General Letitia James. Authorities alleged that the companies engaged in illegal coordination to manipulate benchmark price quotes provided by Urner Barry, a service frequently used in industry supply contracts. By artificially inflating these bids, the producers reportedly caused retail prices to rise for consumers nationwide.

Attorney General James stated that the settlement aims to provide direct relief to those impacted by the alleged price-gouging. Officials noted that distributing the product itself is often more efficient than attempting to issue individual refunds to shoppers. In addition to the egg deliveries, the companies have agreed to pay $3.3 million to the government and must implement new compliance protocols to prevent future anti-competitive behavior.

City Harvest CEO Jilly Stephens welcomed the donation, noting that eggs are among the most requested items by the organization’s pantry partners. According to the Attorney General’s office, the statewide initiative will see nearly 5 million eggs delivered across New York by mid-October.

The settlement has drawn support from various city officials, including Mayor Zohran Mamdani and City Council Speaker Julie Menin, who emphasized the importance of protecting local food security networks from corporate price manipulation. The companies involved have not yet provided public comment regarding the specific timeline for the remaining deliveries.