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.
Last week, several Midwestern feedlot owners along with the Ranchers-Cattlemen Action Legal Fund (R-CALF) filed a class-action lawsuit alleging that dominant meatpackers conspired to depress cattle prices starting in 2015. The case argues that JBS, Tyson, Cargill, and National Beef strategically cut back on open market cattle bids, closed plants, and imported costly foreign cattle in order to force farmers to accept lower prices and manipulate spot market cattle values.(No paywall)
Marfrig Global Foods, a Brazilian meat processor, has acquired National Beef for $969 million. The deal will make Marfrig the second-largest beef processor in the world, after Brazil’s JBS.