The court in The Hague ruled on Tuesday that the government has not acted unlawfully in the so-called Fipronia affair of 2017 and is therefore not liable for the financial damage of chicken farmers.
This means that the demands of more than a hundred poultry farmers and branch organization LTO have been rejected.
Many eggs from Dutch chickens at the time were found to contain a small amount of the chemical fipronil.
When that came out, the industry went into a deep crisis.
About 250 businesses were blocked by the government, destroying millions of eggs.
In addition, tens of thousands of chickens have been culled.
The fipronil turned out to be in a substance that two entrepreneurs from Barneveld had injected in stables on a large scale to combat red mite.
Fipronil is harmful to health in high concentrations.
That is why it may not be in eggs above certain concentrations, the so-called MRL standard.
"Because exceeding the MRL standard does not in itself mean that there was an acute danger to public health, the NVWA was allowed to choose this and did not have to immediately shut down Chickfriend's company", the court writes.
The plaintiffs in the case are of the opinion that the Netherlands Food and Consumer Product Safety Authority (NVWA) and thus the state should have intervened much earlier and warned the sector.
Following the court, the court does not agree with them.
"The NVWA is not there to serve the economic interests of poultry farmers. The poultry farmers themselves are primarily responsible for the quality of the eggs they produce," the court said.