Dutch and Belgian egg producers take legal action against processors for cartel formation to fix purchase prices
A significant group of laying hen farmers from the Netherlands and Belgium has decided to take legal action seeking multi-million-euro compensation, after accusing various egg processors of colluding to keep purchase prices artificially low. According to the complaints, this alleged cartel practice reportedly forced farmers to sell their eggs below the cost of production over a prolonged period, generating considerable financial losses.
The class action lawsuit, to which 110 poultry farmers have so far subscribed, is based on evidence found that certain egg processors agreed prices among themselves, thereby distorting the normal functioning of the market. This is undoubtedly one of the largest legal cases facing the poultry sector on the continent, with claims amounting to tens of millions of euros.
The affected producers maintain that price-fixing has prevented them from obtaining a fair margin for their work, and that the egg processing industry has benefited improperly for years. Backed by specialist law firms, the poultry farmers hope that the European judicial system will grant them the compensation they believe they deserve, setting a precedent against anti-competitive practices and in favour of more equitable conditions for all links in the production chain.
The complaint is backed by the Netherlands Authority for Consumers and Markets (ACM)
The Egg Cartel Damage Foundation, acting on behalf of 110 egg producers, is seeking compensation from processors Interovo, Wulro and Global, after, it says, talks with them broke down. In May 2024, the Netherlands Authority for Consumers and Markets (ACM) announced that it had fined the companies for entering into illegal price-fixing agreements for the purchase of eggs.
The ACM had found that the companies had secret price-fixing agreements for the purchase of eggs and had agreed which farms they would source them from. It was also found that these actions had harmed producers, as they were being paid a lower price for their eggs.
The ACM reported that, for more than a year from April 2015, Wulro and Interovo had coordinated their prices, shared information about suppliers and exchanged competitively sensitive details. It also found that Wulro and Global had been doing the same for three years from March 2016.
Jan Willem, director of the Egg Cartel Foundation, has stated that, regrettably, talks with the egg processors have not led to a resolution. “Therefore, filing the claim against the aforementioned companies is a necessary step towards the compensation to which they are entitled,” he added. Read the Rotterdam court ruling on Rechtspraak.nl
Egg cartel damages estimated at between €21 and €92 million
The illegal egg cartel practices during the period from April 2015 to August 2019 caused significant losses to poultry producers, estimated at between €21 and €92 million, although the actual economic impact is suspected to be even higher.
The companies (Interovo, Wulro and Global) operated secret agreements to fix prices among themselves and coordinated the purchase of eggs. “This harmed farmers, who ended up receiving a lower price for their eggs,” said Martijn Snoep, Chairman of the Authority for Consumers and Markets (ACM). “We take strict action against buyer cartels.”
The cartel began in 2015, when Wulro and Interovo started coordinating prices, sharing suppliers and exchanging sensitive commercial information, the ACM explained. Global and Wulro began doing the same a year later.
In all cases the eggs were industrial-use eggs, i.e. egg products. Specifically, Interovo, Wulro and Global purchased industrial-grade eggs from producers to process them into liquid or powder products, which are subsequently used by the food industry to manufacture sauces and bakery products.