Six months ago, ProEgg, a farmer cooperative organized under the Capper-Volstead Act, was established.  Members include Cal-Maine Foods, Central Valley Eggs, Colorado Eggs, Hickman’s Family Farms, Oakdell Egg Farms, Opal Foods, Willamette Egg Farms and Wrightwood Farms.  The purpose of the marketing cooperative is to maximize availability to the customer base in a 13-state region of the U. S. including Alaska and Hawaii through pooling eggs and resources. ProEgg will offer shell eggs including generic, specialty and branded products covering the spectrum of housing systems.

The members of the cooperative have a shared commitment to high standards, food safety and welfare.  The mission statement for the cooperative includes ProEgg member producers are aligned under a shared intent to create sustainable buying opportunities for egg customers; to promote a consistent, reliable supply of eggs; to connect our shared expertise, volume and resources for the benefit of all we serve; and to advance a positive and stable future for our teams, our communities, our business partners and our customers.

ProEgg Market area

This past week, EGG-NEWS had an opportunity to discuss progress with Ric Herrera, an industry veteran and CEO of the Cooperative.  Herrera described progress in structuring and establishing the cooperative, acquiring customers and organizing logistics.  Despite the profound changes in availability and in pricing during the first half of 2023, ProEgg has developed supply and demand forecasts. 

The membership of the cooperative may be expanded beyond the founders in the future but Herrera emphasized the need for new entrants to subscribe to the principles of the organization and to represent compatibility.  This includes considerations of quality, community responsibility and a commitment to food safety.

Ric Herrera

Members will derive both direct and indirect benefits from membership in the cooperative. The business and its members are however constrained in their activities by the Capper-Volstead Act. This provides exemptions from some legislation concerning joint action and cooperation that would otherwise be regarded as anti-competitive. The Cooperative will function providing that the restraints relating to coercive activities and other restrictions are followed. 

The ProEgg Cooperative represents a significant proportion of eggs supplied to the Western states and will serve as a counter to the buying power of large chains that use the benchmark price discovery system to the detriment of producers. The need for marketing strength is especially relevant with regard to the proposed merger of two national supermarket companies who could otherwise exercise considerable restraint on prices.