More price fixing charges in the meat industry

Investigations into several major meat processing companies have continued in recent weeks. In the latest development, Tyson, Cargill, JBS USA and National Beef—the country’s largest beef packers—were sued in federal court over accusations of price fixing.

Central Grocers filed the class action suit in the U.S. District Court of Minnesota, alleging that the companies conspired to constrain beef supplies since at least 2015.

“While these investigations apparently were triggered most immediately by a spike in beef prices since the COVID-19 outbreak in the U.S., this spike is only one manifestation of defendants’ conspiracy,” the court document said. Feedstuffs has the story.

This followed soon after the U.S. Department of Justice issued civil investigative demands, similar to subpoenas, to the companies.

Tyson has also been accused of price fixing in the poultry industry. According to Reuters, the company said it’s cooperating with the Department of Justice, which has been investigating Tyson since last year. By agreeing to cooperate, company officials and employees can avoid criminal fines, jail time and prosecution.

Several other poultry executives have been indicted recently, most notably Jayson Penn, CEO of Pilgrim’s Pride. Penn pleaded not guilty to the charges, which allege that he and the others conspired to fix chicken prices since as early as 2012. Roger Austin, a former vice president of Pilgrim’s, also pleaded not guilty. The other two defendants are from Claxton Poultry, and at press time, one had pleaded not guilty WattAgNet reports.