Four major U.S. beef companies that control 80% of the nation’s beef at wholesale are being accused of antitrust violations since 2015 by a California-based beef products distributor.
Pacific Agri-Products Inc. accused Cargill Inc., JBS USA, National Beef Packing and Tyson Foods, among others, of allegedly conspiring to control beef prices in a lawsuit filed Oct. 16 in a federal court in Minnesota.
The suit in the 8th District Court for the District of Minnesota claims the defendants “publicly signaled” their collective intent to reduce slaughter volumes by closing or idling beef processing plants or by halting expansion plans and that the moves artificially pushed beef prices higher as supplies were subsequently reduced.
Other companies named in the latest filing – which came on the heels of other litigation accusing beef processors of manipulating prices – include Swift Beef Co. and Marfrig Global Foods. It’s the first legal action by distributors against large U.S. beef processors and echoes similar, separate accusations filed against chicken and pork processors in the last year.
The major beef companies so far have not commented on the latest allegations in the Pacific Agri-Products suit, although Cargill and Tyson called a similar lawsuit filed earlier this year by the Ranchers Cattlemen Action Legal Fund (R-CALF) without merit.