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Merrick Garland | Attorney General | justice.gov

Agri Stats sued by DOJ for operating extensive information exchanges among meat processors

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A civil antitrust lawsuit against Agri Stats Inc. has been filed by The Justice Department for organizing and managing anticompetitive information exchanges among broiler chicken, pork, and turkey processors. 

According to the lawsuit, Agri Stats violated Section 1 of the Sherman Act by obtaining and exchanging data that might be used to unfairly advantage one meat processor over another in terms of pricing, cost, or output. This information could be utilized to create a monopoly in the meat processing industry. This behavior is harmful to both grocery stores and the families of the United States. 

Participating meat processors have been receiving in-depth statistics on a weekly and monthly basis from Agri Stats for many years now. The information is utilized by these processors so that they may set prices and establish production rates. The complaint was handed in to the court that is responsible for the District of Minnesota. The most recent information on sales prices, costs (including compensation for workers and farmers), and output is often split down by facility or firm and included in the reports. often, the reports are broken down by facility or company. Participants were responsible for the processing of more than 90% of the United States' broiler chicken sales, 80% of the United States' pig sales, and 90% of the United States' turkey sales respectively. Agri Stats was aware that meatpackers would use the data to their advantage and raise prices while simultaneously reducing production, which would have an adverse effect on competition. The complaint alleges that Agri Stats' hoax is still going on to this day in the chicken processing industry. The agency has expressed its intention to commence reporting once these problems have been resolved.

 In a statement, Assistant Attorney General Jonathan Kanter of the Antitrust Division of the Department of Justice 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 Department of Justice's website states that its mission is to "enforce the law, maintain national security, and safeguard individual liberties." 

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