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Feds Dig Into Price-Fixing by Egg, Tomato Processors

New inquiries add to list of investigations

By Nick McMaster,  Newser Staff

Posted Sep 23, 2008 3:35 PM CDT
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(Newser) – The Justice Department is investigating allegations of price-fixing by tomato and egg processors, the Wall Street Journal reports today. California processor SK Foods is facing allegations it bribed buyers at six companies to pay inflated prices for tomato paste and chili peppers. Tomato prices have surged 16% over the past year, while overall food prices have risen only 6%.

Separately, grand-jury subpoenas have gone out to the three largest US egg processors to probe the pricing of powdered and liquid eggs. The investigations into tomato and egg products join current federal inquiries, not previously reported, into price-fixing in the fertilizer, cheese, milk and citrus fruit industries.

A customer looks at milk on display at JJ&F Market in Palo Alto, Calif., Wednesday, Aug. 20, 2008.
A customer looks at milk on display at JJ&F Market in Palo Alto, Calif., Wednesday, Aug. 20, 2008.   (AP Photo/Paul Sakuma)
In this June 10, 2008 file photo, tomatoes with vines still attached are on sale in Montpelier, Vt.
In this June 10, 2008 file photo, tomatoes with vines still attached are on sale in Montpelier, Vt.   (AP Photo/Toby Talbot, File)
Benina Burroughs of Merced, Calif., looks over a display of cherry tomatoes by Farmers with ALBA from Salinas, Calif., at a farmer's market during Slow Food Nation in San Francisco, Friday, Aug. 29, 2008. The four day celebration of food goes through Sunday. Slow Food has grown into a cause...
Benina Burroughs of Merced, Calif., looks over a display of cherry tomatoes by Farmers with ALBA from Salinas, Calif., at a farmer's market during Slow Food Nation in San Francisco, Friday, Aug. 29, 2008....   (AP Photo/Eric Risberg)
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Department of Justice • FBI • eggs • tomatoes • price fixing • egg • monopolistic practices • federal prosecution

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