Time to bust the meat trust
In FERN’s latest story, an op-ed published with The Washington Post, senior editor Ted Genoways argues that Kamala Harris’ vow to end price-gouging by food producers and grocery chains won’t be enough to rein in the big meatpackers. Genoways writes: “Americans are spending a greater portion …
U.S. trade agency opposes giant grocery merger as anticompetitive
The largest proposed supermarket merger in U.S. history, Kroger's $24.6 billion purchase of Albertsons, would mean higher prices for food shoppers and less competition, said the Federal Trade Commission on Monday. The FTC said it would file suit to block the merger as anticompetitive.
U.S. accuses Agri Stats of illegally sharing meat company data
The analytics company Agri Stats has violated antitrust law for years by sharing information with chicken, pork, and turkey processors about their competitors’ costs, output, and prices, said the Justice Department in a lawsuit filed on Thursday. Processors used the reports to restrain production and raise prices to consumers, said the lawsuit.
Antitrust settlement requires poultry processors to reform tournament system
Two large poultry processors agreed to guarantee a base payment to the farmers who raise their birds, a fundamental reform of the so-called tournament system that pits growers against each other for income, said the Justice Department on Monday. The reform was part of a proposed consent decree that would order the processors, Sanderson Farms and Wayne Farms, plus Cargill Inc to pay $84.8 million in restitution for conspiring to hold down wages paid to processing plant workers.
More competition will reduce meat prices in fight against inflation, says Biden
Acknowledging "we need to get inflation under control" as part of the economic recovery from the pandemic, President Biden said on Wednesday that the administration will inject competition into the highly consolidated meat industry to bring down prices at the grocery store. Meat prices soared by 14.8 percent during 2021, part of overall food inflation of 6.3 percent.
Biden calls for ocean shipping reforms
Despite port congestion in 2021, Ocean carriers made huge profits that are estimated to drive up consumer prices by 1 percent this year, said the White House on Monday. "The president is calling on Congress to pass robust reforms to the ocean shipping industry, including reforms that address the current antitrust immunity for ocean shipping alliances."
Address imbalances in cattle market, say farm groups
In a joint statement on Monday, six farm groups called on the Justice Department to investigate the highly consolidated meatpacking industry and urged the development of “new independent, local and regional packers.” Ranch and farm groups have complained repeatedly during the …
Big poultry processor to pay $75 million to resolve antitrust lawsuit
Three months after a plea agreement with the government that included a $110.5 million fine, Pilgrim’s Pride, the second-largest U.S. poultry processor, said on Monday it would pay $75 million to settle a class-action lawsuit by its customers. Other price-fixing claims are pending in the …
Dean Foods seeks to get back money paid to dairy farmers before bankruptcy
Hundreds of dairy farmers nationwide fear they could owe substantial sums to the bankrupt dairy processor Dean Foods after the company sent out letters attempting to claw back payments made to farmers in the months preceding the company’s Chapter 11 filing last year. Dean’s actions have been harshly criticized by farm groups and, for some, underscore the dangers of a heavily consolidated dairy industry that leaves farmers with few processing options. (No paywall)
Lawmakers seek USDA aid for sheep ranchers
The USDA needs to step in to help sheep ranchers in the West following the bankruptcy of the second-largest U.S. sheep processor, said leaders of the House Agriculture Committee on Wednesday.
Indictments could be a sign of increased antitrust enforcement in farm sector
After years of failed attempts to draw attention to market concentration in the meat sector, farmers are cautiously optimistic about federal investigations into alleged antitrust violations in the chicken and beef industries. And grand jury indictments of four chicken industry executives could be a sign of more antitrust action to come, says a former attorney at the Department of Justice. (No paywall)
Poultry execs indicted for price fixing
A federal grand jury indicted four poultry industry executives on a charge of conspiring to fix prices and rig bids for broiler chickens, announced the Justice Department on Wednesday. The charges were the first in "an ongoing federal antitrust investigation into price-fixing, bid rigging, and other anticompetitive conduct in the broiler chicken industry," it said.
Dairy Farmers of America wins bid for Dean Foods
The milk cooperative Dairy Farmers of America has entered into an agreement to buy most of milk processor Dean Foods’ assets as part of the latter’s bankruptcy proceedings. If approved, the $433 million deal will make DFA both the largest milk supplier and the largest milk processor in the country.
Meat prices spike, cattle prices fall, and ranchers and lawmakers see market manipulation
Wholesale beef prices have jumped to record levels, as shoppers stockpile meat in response to the global coronavirus pandemic. But this run on beef isn’t helping cattle ranchers. On the contrary, cattle prices have plummeted since January, putting many ranchers on the brink of collapse. “It’s never been worse. The futures market is crashing … and box beef prices are skyrocketing. It’s nuts,” says rancher Mike Callicrate of St. Francis, Kansas. (No Paywall)
DOJ probes Dean Foods/Dairy Farmers of America proposed merger
The Department of Justice is looking into the potential antitrust implications of a proposed deal between bankrupt milk processor Dean Foods and the giant dairy cooperative Dairy Farmers of America (DFA). According to a Monday report in the Wall Street Journal, the department is …
Lawsuit alleges turkey companies conspired to keep prices high
A new class-action lawsuit brought by two food distributors alleges that the country's top turkey companies conspired for most of the past decade to raise turkey prices. The allegations mirror those brought in recent years against beef, pork, and chicken companies, and all revolve around the use of reports on industry production and pricing made by a secretive data company called Agri Stats.(No paywall)
More antitrust lawsuits hit the meat industry. This time, it’s pork.
A class-action lawsuit filed this week on behalf of pork consumers alleges that hog companies have colluded to artificially hike the price of pork — and their profits. The complaint also provides new insight into Agri Stats, a data-sharing company that sits at the center of the wave of antitrust allegations sweeping the meat sector.(No paywall)
Multiple lawsuits allege price-fixing by big beef companies
Just a few months after news broke that the nation’s top attorneys are investigating Big Chicken for alleged antitrust violations, similar allegations are piling up against Big Beef. Consumers, ranchers, and a meat distributor have now filed lawsuits alleging that the country’s biggest beef companies have broken antitrust law by conspiring to raise the price of beef and lower the amount paid to producers.