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Diving overview:
- McDonald’s is suing four of the world’s largest meat producers – Tyson, JBS, Cargill and National Beef Packing – for allegedly conspiring to inflate beef prices.
- The lawsuit is, Filed Friday in federal court in New Yorkalleges that producers violated U.S. antitrust laws by lowering prices for cattle ready for slaughter and slowing plant production, artificially raising prices for McDonald’s and other buyers.
- McDonald’s, the world’s largest buyer of beef and pork, is seeking an undisclosed amount in financial compensation. The meat company named in the suit did not immediately respond to a request for comment, but has previously admitted no wrongdoing. Similar cases.
Dive Insights:
Over the years, industry stakeholders have raised concerns about the wide gap between fed cattle and wholesale beef prices, resulting in us department of agriculture and US Department of Justice.
The agencies sought to determine whether the “Big Four” meatpackers, who control about 80% of U.S. beef production, had violated federal antitrust laws and fair competition principles in any way. The investigation is ongoing.
McDonald’s lawsuit is the latest to accuse JBS, Tyson, Cargill and National Beef of conspiring to raise beef prices by limiting beef supplies since 2015. a group of ranchersHe said it lacked legal status.
In some cases, producers have chosen to settle. In 2022, JBS USA agreed to pay $52.5 million. Resolving price fixing allegations From grocery stores and wholesalers.
According to the 100-page complaint filed by McDonald’s, the companies frequently held meetings at conferences and trade shows, where executives and key employees exchanged sensitive information that could control beef and beef prices to bolster profits. It is highly likely that you did.
“By colluding to pay suppliers less and produce less beef, defendants were able to increase their margins and profits while ensuring that no one would rip off the other,” McDonald’s said in the lawsuit.
The fast food giant did not immediately respond to a request for comment.
