Egg producer Farm Pride Foods Limited (ASX:FRM) has been implicated in an alleged egg cartel. The Australian Competition and Consumer Commission has launched legal action against a number of Australian egg producers and the Australian Egg Corporation Limited (AECL).
Australia's competition regulator claims the egg industry’s most powerful services body encouraged members to cull hens or dispose of eggs available for supply.
The Corporation allegedly took the action to lower the amount of eggs available to avoid oversupply and in turn increase prices for Australian consumers.
While Farm Pride Foods is yet to comment it did release the ACCC’s announcement to the market after which it shares closed 7.14 per cent lower at $0.13.
Farm Pride Foods reported a net loss of $52,000 in the first half of its 2014 financial year.
