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Australia Sues Major Egg Suppliers Over Alleged Industrywide Collusion

By  |  October 13, 2026
Consumers’ Wallets Get Break With Lower Egg Prices

Australia’s competition watchdog has launched legal proceedings against 12 egg producers and suppliers, including market leader Sunny Queen, alleging that the companies coordinated production and distribution decisions in ways that restricted competition in the country’s egg market.

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    The Australian Competition and Consumer Commission filed the civil case in Federal Court on Tuesday, accusing the businesses of engaging in anticompetitive conduct dating back to at least October 2020, according to Quartz.

    The allegations center on coordination involving egg production volumes, distribution arrangements, business expansion and decisions to remove laying hens from production. The regulator argues that such practices undermined independent competition among suppliers.

    The case targets several prominent industry participants, including Sunny Queen Pty Ltd, Doug Hall Poultry Pty Ltd, McLean Farms operator Alpair Pty Ltd, Ellerslie Free Range Farms Pty Ltd and Kinross Farm Pty Ltd.

    According to Quartz, the ACCC alleges that Sunny Queen, Doug Hall Poultry and McLean Farms collaborated in an attempt to acquire land in Pittsworth, Queensland, to prevent rival producers from obtaining the property.

    Regulators also claim Sunny Queen imposed restrictions on Kinross Farm’s sales, limiting its ability to supply major Australian grocery and wholesale businesses, including Coles, Woolworths, Aldi, Metcash and Costco.

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    Related: Trump Administration Sues California Over Egg Laws, Citing Nationwide Price Hikes

    The proceedings mark a significant test of Australia’s competition legislation. Quartz reported that the case includes the regulator’s first allegations under rules prohibiting concerted practices, which were introduced in 2017 to address certain forms of coordination between competing businesses.

    The ACCC is seeking financial penalties, court declarations, injunctions and legal costs, along with other remedies.

    The regulator estimates that Sunny Queen accounts for roughly one-third of Australia’s retail egg supply. That market position is particularly significant in an industry characterized by substantial barriers to new competitors and expansion, according to the ACCC.

    Australians consume more than 250 eggs per person annually on average, making the sector an important part of the country’s food supply.

    Sunny Queen has rejected the allegations and intends to contest the proceedings. A company spokesperson said the business had cooperated with the regulator’s investigation, according to the Australian Broadcasting Corporation, as cited by Quartz.

    The Australian case comes amid increased scrutiny of competition in egg markets internationally. Quartz also reported that three major US egg producers recently reached a settlement over allegations involving manipulation of an egg-price benchmark, agreeing to provide 53 million eggs to food banks and make $3.3 million in payments.

    Source: Quartz