The US’s largest egg producer has reported soaring profits as consumer prices hit record highs thanks to avian flu – and alleged price-fixing which is being investigated by the Department of Justice. Cal-Maine’s profits more than tripled compared with the same quarter last year – and are nearly eight times as high as at the start of the bird flu outbreak in February 2022, according to financial results published on Tuesday. The company, which produces 20% of the eggs eaten in the US, made $1bn in windfall income in the first three-quarters of the financial year – the profits extracted after accounting for production, processing and transport costs.

Shares of Cal-Maine Foods, the largest U.S. egg producer, fell in after-hours trading Tuesday after the company acknowledged it is being investigated by the antitrust division of the U.S. Department of Justice. Ridgeland, Mississippi-based Cal-Maine said it received notice of the investigation into egg price increases last month. Cal-Maine said it is cooperating with the investigation. The company’s shares fell more than 4% in after-hours trading. Egg prices have hit record highs in recent months, largely due to a bird flu epidemic that has forced farmers to slaughter more than 166 million birds, mostly egg-laying chickens.

Cal-Maine Foods CALM -0.40% is cooperating with a Justice Department investigation about the cause of soaring egg prices, including whether large producers have conspired to raise costs or hold back supply. The department sent a letter to some companies instructing them to preserve documents about their pricing conversations with customers, competitors and egg-price tracker Expana, the Wall Street Journal reported in March. The rise in egg prices has been attributed to an outbreak of the avian flu, which wiped out millions of hens. Cal-Maine said it has taken steps to repopulate its supply, and is continuing to record soaring sales thanks to higher sticker prices and strong demand. Cal-Maine said Tuesday revenue doubled to $1.42 billion in its fiscal third quarter.