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Oct. 9, 2024 By Francisco Velasquez, Quartz magazine McDonald's has filed a lawsuit against Tyson Foods JBS and other major meat processing companies, accusing them of colluding for years to limit beef supplies. To view the lawsuit click here. The lawsuit alleges that the collusion allowed the companies to boost their profits while forcing McDonald's to pay inflated prices for their meat. McDonald's claims the companies, including Cargill and National Beef Packing, systematically reduced production levels starting on January 1, 2015, in order to "artificially" drive up market prices. With significant control over the cattle and beef industry, the companies could manipulate prices at their will, the lawsuit says. "Only colluding meatpackers would expect to benefit by reducing their prices and purchases of slaughtered cattle, fully aware that their conspiracy would shield them from the pressures of a competitive market," McDonald's stated. The "Big Four" beef companies represent the largest meat processing and packing facilities globally. In 2018, they combined to account for about 80% of all fresh and frozen beef sold in the U.S., while the next largest competitor held less than 3% market share. The lawsuit is part of a broader trend of allegations against the meatpacking giants regarding violations of U.S. antitrust laws and coordinated efforts to manipulate cattle pricing. In June 2020, it was reported that the Department of Justice (DOJ) Antitrust Division issued civil subpoenas to Tyson Foods, JBS, Cargill, and National Beef to gather information about their pricing practices, particularly looking at records dating back to January 2015. To read the entire article click here. Tweet |
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