Four of the largest US beef-packing companies were accused in a lawsuit on Tuesday, April 23, of violating federal antitrust law by conspiring to drive down prices they paid ranchers for cattle, reported Reuters.
Tyson, Cargill, the JBS unit of Brazil’s JBS, and National Beef Packing were accused of colluding since January 2015 to suppress the price of “fed” cattle, which is cattle raised specifically for beef production, with a goal of improving margins and profitability.
The 104-page complaint by the Ranchers Cattlemen Action Legal Fund United Stockgrowers of America and four cattle-feeding ranchers was filed in Chicago federal court and seeks compensatory, punitive, and triple damages.
According to the complaint, Tyson, Cargill, JBS, and National Beef conspired to suppress prices through such tactics as importing foreign cattle at a loss, closing slaughter plants, and reducing slaughter and purchase volumes.
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