JBS Settles Price Fixing Allegations for $52.5M, Industry Responds
JBS SA agreed to pay a sum of $52.5 million to settle litigation following accusations of conspiring to inflate prices and pocketbooks by limiting beef supply in the U.S. market.
In late 2019, the National Cattlemen’s Beef Association (NCBA) sent a letter to the USDA, kickstarting an investigation into price discrepancies after a Tyson plant in Holcomb, Kan., went up in smoke. When the issue fell amiss, NCBA took to the White House requesting the Department of Justice (DOJ) open an investigation into cattle market wrongdoings.
According to NCBA, they worked directly with members of Congress to press the DOJ for an update and information regarding the investigation but had not heard back prior to the settlement announcement.
Colin Woodall, NCBA CEO, says the DOJ has an “obligation” to provide full transparency and finish the investigation to give cattle producers the full scope of the issue.
“NCBA encourages the government to finalize its investigation so we can fully understand any damage that may have been caused,” Woodall says. “Cattle producers do not have years to wait for the government to determine whether there has been wrongdoing, we demand answers now.”
The beef settlement comes on the heels of President Biden announcing his administration’s intentions to level the playing field in the meat sector by taking away power from a small group of meat packers.
The lawsuit notes the defendants—JBS, Cargill, Tyson, Inc. and National Beef Packing Co.—controlled roughly 80% of the fresh and frozen beef supply in the U.S. during their conspiracy that is said to have started as early as 2015.
In 2020, JBS settled for $24.5 million, surrounding price-fixing claims brought to the table by pork buyers.
Read More:
- Hy-Vee, Kroger and Other U.S. Retailers Accuse Pork Processors of Price Fixing
- Farm Bureau Seeks Revision to Cattle Transparency Act
- Cattle Price Discovery Functioning Effectively, Arkansas Analysis Finds
- House Agriculture Committee to Hear Review on State of Livestock Industry
- JBS Reaches 'Icebreaker' Settlement of Beef Price-Fixing Claims
