Australia’s largest egg supplier, Sunny Queen Pty Ltd, along with 11 other egg producers and suppliers, is facing legal action brought by the Australian Competition and Consumer Commission (ACCC) over allegations of coordinated conduct aimed at restricting competition in the egg market. The ACCC filed proceedings in the Federal Court on Tuesday, accusing the companies of engaging in cartel and other anticompetitive behavior dating back to at least 2020.
The ACCC alleges that Sunny Queen and its industry counterparts coordinated on various aspects of their business operations, including setting production volumes, managing distribution channels, planning expansion, and culling flocks to address perceived oversupply. These coordinated actions are said to have substantially reduced competition in the supply of free-range, cage, and organic eggs across Australia. The regulator states this conduct likely impacted Australian consumers by limiting choice and potentially driving up prices.
ACCC Chair Gina Cass-Gottlieb highlighted that these businesses acted beyond independent market responses, engaging in what is described as a "concerted practice," a type of cooperation prohibited under competition law since 2017. The case represents one of the first enforcement actions involving this legal provision.
Further allegations include claims that Sunny Queen, along with Hall and McLean Farms, jointly purchased a property near Toowoomba, Queensland, to prevent rival egg suppliers from acquiring it, an act that the ACCC says diminished competition. Additionally, Sunny Queen is accused of restricting sales volumes for a competitor, Kinross, and barring Kinross from selling eggs to major Australian retailers such as Coles, Woolworths, Aldi, Metcash, and Costco.
Sunny Queen, which controls about one-third of the national egg supply, denies the allegations and has pledged to contest the court action. A company spokesperson emphasized Sunny Queen’s cooperation throughout the ACCC investigation and highlighted its longstanding reputation for ethical farming and consumer practices. It also noted the company’s commitment to continuing business as usual during the legal proceedings.
Kinross, acquired by Pace Farm in 2025, acknowledged the proceedings and stated it was reviewing the allegations but refrained from further comment due to the ongoing court process. Representatives for Hall and McLean Farms did not respond to requests for comment by the time of publication.
The ACCC is seeking a range of court orders including declarations of contravention, financial penalties, injunctions, and costs. The case underscores the regulator’s focus on preserving competition in fresh food supply chains to ensure consumers benefit from fair pricing and supply.