Food distributors sue US chicken processors over price conspiracy

The distributors have sued companies including Tyson Foods, Pilgrim’s Pride, Sanderson Farms and Perdue Farms in complaints filed in a federal court in Illinois, US, earlier this week.

FoodIngredientsFirst has reached out to Winn-Dixie Stores and US Foods for further comments on the allegations on what this could mean for the future of the food industry.

The US chicken sector, which is dominated by these large meat processors, has come under increased scrutiny as customers and farmers have alleged antitrust violations relating to pricing, production and compensation.

“This is a case about how a group of America’s chicken producers reached illegal agreements and restrained trade,” the lawsuits from Sysco and US Foods recently said, according to a Reuters report.

Tyson, the biggest US chicken company, and Pilgrim’s Pride have reportedly denied the allegations.

US poultry buyers previously claimed in a 2016 lawsuit that Tyson and its competitors had colluded since 2008 to reduce output and manipulate prices. Winn-Dixie sued the chicken companies earlier this month.