Pick n Pay launches 'Live Well Club' to promote healthier choices as Boxer Listing Looms
SOUTH AFRICA - In a move to encourage healthier eating habits Pick n Pay has introduced the Pick n Pay Live Well Club a new ...
Posted - 26 Sep, 2024
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23 Oct, 2024
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USA - McDonald’s has filed a lawsuit against four of the largest meat producers globally, including Tyson Foods, JBS, Cargill, and National Beef Packing.
The lawsuit, lodged in a federal court in New York, accuses these companies of conspiring to inflate beef prices, a practice allegedly violating U.S. antitrust laws.
The fast-food giant claims that since 2015, these meat producers have engaged in a coordinated effort to manipulate the market by limiting the supply of slaughter-ready cattle and reducing plant production.
According to McDonald’s, this artificial scarcity has led to higher costs for the company and other buyers, impacting the pricing of beef products significantly.
While the lawsuit does not specify the monetary damages sought, McDonald’s, recognized as the world’s largest buyer of beef and pork, aims for restitution reflective of the inflated costs incurred.
The companies named in the suit have yet to respond publicly, although they have previously denied any wrongdoing in similar antitrust allegations.
The lawsuit emerges amid ongoing investigations by the U.S. Department of Agriculture and the Justice Department, both probing the actions of the so-called "Big Four" meatpackers.
These companies control approximately 80% of the U.S. beef production market, raising concerns about potential violations of federal antitrust laws and competitive practices.
The issue of rising beef prices has sparked a series of investigations, with lawmakers expressing concern over the disparity between live cattle prices and wholesale beef costs.
In some instances, producers have opted to settle similar allegations; for instance, JBS USA agreed to pay US$52.5 million to resolve price-fixing claims from grocery stores and wholesalers in 2022.
In the lawsuit, McDonald’s contends that the executives of these meatpackers held frequent meetings at industry conferences, during which sensitive pricing information was exchanged to maintain control over beef prices and protect their profit margins.
“By collusively underpaying suppliers for fed cattle and over time reducing beef output, defendants have been able to increase their margins and profits, confident that none of them would take volume from each other,” the complaint details.
The McDonald’s lawsuit adds to a growing list of legal actions against major meatpacking firms, coinciding with proposed class-action cases from cattle ranchers and beef consumers.
Previously consolidated in a Minnesota federal court, these cases have included claims from other large buyers such as BJ’s Wholesale, Target, and Aldi, all of whom have echoed concerns regarding potential price-fixing practices.
Federal authorities have not only investigated the beef market but have also scrutinized price manipulation in the poultry sector. Notably, in 2021, Pilgrim’s Pride, a major poultry producer partially owned by JBS, pleaded guilty to charges of price-fixing and was ordered to pay US$107 million in fines.
Moreover, the scrutiny of the beef packing industry has intensified. In 2020, federal agents issued subpoenas to the four major meatpackers as part of an antitrust probe.
The following year, a bipartisan group of nearly 30 members of Congress urged the Justice Department to determine whether these firms’ control over beef processing was infringing on antitrust regulations.
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