In separate lawsuits filed late Tuesday, food distributors Sysco and US Foods alleged that some of the biggest chicken processors in the country colluded to raise chicken prices. The lawsuits target Tyson Foods, Pilgrim’s Pride, Koch Meat Co., Sanderson Farms, Perdue Foods, and others. The lawsuit alleges that the companies used Agri Stats, a confidential industry database on chicken pricing, to share information and conspire to raise prices.
Sysco and US Foods are the two largest food distributors in the country. Their customers include restaurants, hospitals, universities, and other institutions. Together, they control about 25 percent of food distribution in the United States. The two companies attempted to merge in 2015, but the deal was blocked by the Federal Trade Commission.
The lawsuits come just two weeks after two grocery retailers, Winn-Dixie and Bi-Lo, filed a similar lawsuit alleging that the top chicken processors had conspired to fix prices over the course of several decades.
Farmers have also alleged that the biggest chicken processors engage in predatory tactics to fix the price of chicken, lower prices for farmers, and control supply.