Australia’s competition watchdog, the Australian Competition and Consumer Commission (ACCC), has initiated civil court proceedings in the Federal Court against the nation’s largest egg supplier, Sunny Queen, along with 11 other egg producers and suppliers. The regulator alleges that the companies engaged in cartel conduct and anti-competitive practices to coordinate egg production and supply across Australia.
According to the watchdog, key suppliers have collaborated since at least October 2020 on critical business choices, including production volumes, distribution strategies, expansion plans, and bird culling to manage perceived market oversupply. The enforcement action marks the first time the ACCC has included concerted practice allegations since the statutory prohibition was introduced in 2017. Concerted practices cover business cooperation that goes beyond parallel market behavior, even if a formal agreement or understanding cannot be fully established.
The proceedings name prominent industry players alongside Sunny Queen, including Doug Hall Poultry, McLean Farms, Ellerslie Free Range Farms, and Kinross Farm. The ACCC alleges that these entities conspired to control which retailers each firm could supply, set production ceilings, and schedule culling during oversupply periods. In one specific instance, the regulator claims Sunny Queen, Hall, and McLean Farms jointly acquired a rural property in Pittsworth, Queensland, specifically to block rival suppliers from expanding into the area.
Additionally, the enforcer alleges Sunny Queen imposed strict limits on rival Kinross Farm, restricting its supply volumes and barring it from selling directly to major supermarket chains including Coles, Woolworths, Aldi, Metcash, and Costco. Sunny Queen currently controls approximately one-third of the retail egg supply in Australia, operating in an industry characterized by high concentration and significant barriers to entry.
ACCC Chair Gina Cass-Gottlieb stressed the seriousness of the alleged conduct, emphasizing that fair competition in essential grocery markets is crucial for preventing inflated prices and restricted choices for consumers. The regulator is seeking court declarations, pecuniary penalties, injunctions, and costs against the respondents.