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# Egg giants face court over alleged plot to cut supply
- URL: https://www.bushletter.com/accc-sues-sunny-queen-and-eleven-egg-producers-in-cartel-case/
- Published: 2026-10-14T04:30:00.000Z
- Updated: 2026-10-14T04:29:59.000Z
- Description: Sunny Queen, Australia's biggest egg supplier, denies the allegations. The watchdog warns that restricted competition can leave shoppers with less choice and higher prices.
- Author: Bushletter Newsroom
- Tags: Business, Legal, Australia, Sunny Queen

TLDR

Australia's consumer watchdog has taken twelve egg producers to the Federal Court, alleging coordinated supply restrictions dating back to at least October 2020\. Sunny Queen, which holds roughly one third of the national retail egg market, denies the allegations and will defend the case.

## Watchdog files Federal Court action over alleged egg industry cartel

The Australian Competition and Consumer Commission filed civil proceedings in the Federal Court on 13 October 2026 against twelve egg producers and suppliers, alleging coordinated efforts to restrict supply across the national retail market.[\[1\]](https://www.accc.gov.au/media-release/accc-alleges-major-australian-egg-producers-engaged-in-cartel-and-other-anti-competitive-conduct?ref=bushletter.com) The named respondents include Sunny Queen Pty Ltd, Doug Hall Poultry Pty Ltd, Alpair Pty Ltd trading as McLean Farms, Ellerslie Free Range Farms Pty Ltd and Kinross Farm Pty Ltd.

The ACCC alleges that since at least October 2020 the respondents coordinated on production volumes, culling, distribution and expansion plans to manage perceived oversupply, in breach of the Competition and Consumer Act.[\[1\]](https://www.accc.gov.au/media-release/accc-alleges-major-australian-egg-producers-engaged-in-cartel-and-other-anti-competitive-conduct?ref=bushletter.com) The watchdog says the conduct amounts to cartel conduct and concerted practices prohibited under Part IV of that Act.

Among the specific allegations, the ACCC says Sunny Queen, Doug Hall Poultry and McLean Farms purchased a property in Pittsworth, Queensland to prevent rival egg suppliers from acquiring it.[\[1\]](https://www.accc.gov.au/media-release/accc-alleges-major-australian-egg-producers-engaged-in-cartel-and-other-anti-competitive-conduct?ref=bushletter.com) A separate allegation concerns a 2020 Egg Supply Agreement under which Kinross Farm Pty Ltd was prohibited from selling eggs to Coles, Woolworths, Aldi, Metcash or Costco.[\[2\]](https://www.accc.gov.au/system/files/20261013%20ACCC%20v%20Sunny%20Queen%20-%20Concise%20Statement%20-%20Court%20sealed%5F0.pdf?ref=bushletter.com)

ACCC Chair Gina Cass-Gottlieb said the regulator viewed the conduct as extremely serious. "Our investigation has uncovered alleged widespread anti-competitive conduct in the egg industry that we allege has impacted the supply of eggs to Australian consumers since at least 2020\. This alleged conduct is extremely serious, which is why we have commenced this Federal Court action," Cass-Gottlieb said.[\[1\]](https://www.accc.gov.au/media-release/accc-alleges-major-australian-egg-producers-engaged-in-cartel-and-other-anti-competitive-conduct?ref=bushletter.com)

Cass-Gottlieb said fair competition in fresh food markets was central to the case. "Fair competition in the supply of fresh food such as eggs is extremely important. Anti-competitive conduct disadvantages Australian consumers, who can face reduced choice and higher prices, as well as those businesses seeking to compete fairly or who are seeking to enter markets to provide competing supply," she said.[\[1\]](https://www.accc.gov.au/media-release/accc-alleges-major-australian-egg-producers-engaged-in-cartel-and-other-anti-competitive-conduct?ref=bushletter.com)

Sunny Queen is the largest egg supplier in Australia, holding approximately one third of the market share for the supply of eggs to retailers nationally.[\[1\]](https://www.accc.gov.au/media-release/accc-alleges-major-australian-egg-producers-engaged-in-cartel-and-other-anti-competitive-conduct?ref=bushletter.com) A Sunny Queen spokesperson said the company denies the allegations and intends to defend the proceedings.[\[3\]](https://www.sunnyqueen.com.au/news/?ref=bushletter.com)

KEY TAKEAWAYS

01Twelve egg producers face Federal Court proceedings filed by the ACCC on 13 October 2026.

02Alleged coordination covered production volumes, culling, distribution and expansion plans since at least 2020.

03Sunny Queen, Hall and McLean Farms allegedly bought a Pittsworth property to block rival suppliers.

04A 2020 supply agreement allegedly barred Kinross Farm from selling to Coles, Woolworths, Aldi, Metcash and Costco.

05Sunny Queen holds about one third of the national retail egg market and denies all allegations.

SOURCES & CITATIONS

1. [ACCC media release: ACCC alleges major Australian egg producers engaged in cartel and other anti-competitive conduct](https://www.accc.gov.au/media-release/accc-alleges-major-australian-egg-producers-engaged-in-cartel-and-other-anti-competitive-conduct?ref=bushletter.com)
2. [ACCC v Sunny Queen Concise Statement (Federal Court, sealed)](https://www.accc.gov.au/system/files/20261013%20ACCC%20v%20Sunny%20Queen%20-%20Concise%20Statement%20-%20Court%20sealed%5F0.pdf?ref=bushletter.com)
3. [Sunny Queen news statement](https://www.sunnyqueen.com.au/news/?ref=bushletter.com)

FREQUENTLY ASKED QUESTIONS

Who has the ACCC taken to the Federal Court over egg supply?

The ACCC filed proceedings on 13 October 2026 against twelve egg producers and suppliers, including Sunny Queen Pty Ltd, Doug Hall Poultry Pty Ltd, McLean Farms, Ellerslie Free Range Farms and Kinross Farm Pty Ltd.

What conduct does the ACCC allege occurred?

The ACCC alleges the respondents coordinated on production volumes, culling, distribution and expansion plans since at least October 2020, and that Kinross Farm was contractually barred from selling to major retailers including Coles, Woolworths and Aldi.

Has Sunny Queen admitted to any wrongdoing?

No. Sunny Queen denies the allegations and has said it intends to defend the Federal Court proceedings.