We in India have heard of cartels and hoarding of rice, foodgrains, kerosene and even some vegetables like onions by the shrewd Businessman to jack up the prices. Also we have never heard of any litigation leave alone prosecutions in any of these cases. Hence I was shocked to know that someone actually filed for litigation against the increase in prices of “Eggs” --- yes you got it right “Eggs” due to cartel created by 13 companies – Wow!!!
“Steve Ribbing, who runs a family-style restaurant south of Buffalo, got fed up with the growing dent in his company's bottom line. The culprit? Egg prices, which have jumped nearly 50% over the past two years. Ribbing griped to his attorney, an act that ultimately led to a lawsuit against more than a dozen egg producers and the industry's trade group.
Critics say the price jump since 2006 was not particularly mysterious: egg producers, the plaintiffs contend, conspired to restrict supply as part of a broad scheme to boost prices. Ribbing's complaint moved from his lawyer to a large national firm, finally becoming a sweeping lawsuit that recently gained class-action status on behalf of restaurants, grocers, and other direct buyers nationwide. The litigation's targets include 13 of the nation's biggest egg producers, including Cal-Maine Foods (CALM), Pilgrim's Pride (PPC) and Rose Acre Farms, as well as a Georgia-based industry association, the United Egg Producers (UEP). The average retail price of a dozen eggs, which had been stable for the better part of a decade, soared to $2.20 per dozen in March, after climbing from $1.63 in 2007 and $1.30 in 2006, according to the Bureau of Labor Statistics.”
I hope Venkateshwara Hatcheries doesn’t get any smart ideas from this one!
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