Cargill Reaches Settlement with McDonald’s in Beef Price-Fixing Suit

Cargill  has settled with McDonald’s Corp. over allegations tied to a broad price-fixing scheme in the U.S. beef industry, according to a joint statement released on April 29.

The resolution, first reported by Bloomberg, comes in response to a lawsuit McDonald’s filed in October 2024 against several of the nation’s top beef suppliers, including JBS, Swift Beef Co., National Beef Packing Co., Tyson Foods, and Cargill. The fast-food chain had accused the companies of colluding to restrict beef supplies as early as 2015, thereby inflating prices and violating federal antitrust law under the Sherman Act.

Per Bloomberg, the lawsuit contended that the named meatpackers worked in concert to “exploit their pivotal role” in cattle procurement and beef distribution, leading to what McDonald’s described as artificially high market prices. The restaurant giant also suggested that certain suppliers sought to offset narrowing profit margins—caused in part by prolonged drought conditions—by manipulating beef pricing practices.

Related: McDonald’s Sues Beef Giants, Accusing Them of Price-Fixing Conspiracy

With this new agreement, McDonald’s has dropped its claims against Cargill alone, though legal proceedings remain ongoing against the other defendants. “Cargill has been a partner to McDonald’s for more than 45 years, and we value that partnership,” said Cesar Piña, senior vice president and chief supply chain officer for McDonald’s USA, in the companies’ joint statement.

Cargill echoed the sentiment, with Pete Richter, the company’s chief customer officer, saying, “We are pleased to put this matter behind us on terms that strengthen and grow our partnership with McDonald’s.”

However, Cargill still faces related legal challenges brought by others in the industry. “We stand by our conduct, and we will continue to aggressively defend against those claims,” Richter added.

As noted by Bloomberg’s Gerson Freitas Jr., both companies have declined to provide further details about the terms of the settlement.

Source: Feed Stuffs