Major meat processors in the United States are facing scrutiny as the Department of Justice (DOJ) has filed a civil antitrust lawsuit against Agri Stats Inc. The lawsuit alleges that Agri Stats organized and managed anticompetitive information exchanges among broiler chicken, pork, and turkey processors.
The lawsuit, initiated on September 28, 2023, accuses Agri Stats of facilitating the exchange of sensitive competitive data among dominant players in the meat processing industry. Agri Stats reportedly provided exhaustive weekly and monthly reports to participating processors, offering detailed insights into sales prices, costs, and output. These reports, sometimes running hundreds of pages long, were not made available to meat buyers, the workforce, or the general public, creating an imbalance in data accessibility.
The DOJ claims that Agri Stats was aware that the meat processors used the shared information for anticompetitive purposes. There are even allegations that Agri Stats encouraged processors to inflate prices and limit supply. This practice has reportedly resulted in consumers paying higher prices for chicken, pork, and turkey.
While Agri Stats had previously halted reporting on pork and turkey due to previous antitrust lawsuits, it has expressed interest in resuming such reporting after the resolution of these suits. However, the company's questionable practices continue, particularly in the chicken processing domain.
Assistant Attorney General Jonathan Kanter of the DOJ's Antitrust Division emphasized the importance of addressing anticompetitive information exchanges in the agricultural industry. He stated, "The Justice Department is committed to addressing anticompetitive information exchanges that result in consumers paying more for chicken, pork, and turkey. This case is the latest effort by the Justice Department to protect American consumers, farmers, and workers from anticompetitive practices in the agriculture industry."
The lawsuit against Agri Stats Inc. highlights the ongoing efforts of the DOJ to protect consumers and promote fair competition in the meat industry.
