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Pilgrim’s Pride to Pay $100 Million in Settlement Over Alleged Farmer Pay Suppression

By  |  August 19, 2024
Chicken

Pilgrim’s Pride Corp., one of the largest poultry processors in the United States, has agreed to pay a $100 million settlement in cash to address claims that it conspired with other poultry companies to suppress the wages of chicken farmers in violation of antitrust laws. This proposed settlement was revealed by farmer plaintiffs in a motion for preliminary approval filed on Friday in the U.S. District Court for the Eastern District of Oklahoma.

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    The settlement follows years of litigation against multiple poultry firms accused of colluding to keep farmer compensation artificially low. Pilgrim’s Pride, the sole remaining defendant in the case, reached an agreement in principle with the plaintiffs in June, but the financial terms of the deal were not disclosed until now.

    If approved, this settlement would bring the total recovery for the farmers involved in the litigation to $169 million. This figure includes previous settlements reached with other poultry companies involved in the alleged scheme. The settlement marks a significant resolution in a long-running dispute that has pitted small-scale chicken farmers against powerful poultry processing giants.

    The plaintiffs in the case, primarily chicken farmers, argued that Pilgrim’s and other poultry processors had violated antitrust laws by working together to suppress the pay rates for farmers who raise chickens under contract for the processors. This practice, according to the plaintiffs, has hurt small farmers and skewed the poultry market in favor of large corporations.

    The settlement, if granted preliminary approval by the court, will not only compensate the farmers for their losses but also send a strong message about the importance of fair competition in the agricultural sector. Further court proceedings will determine the final approval and distribution of the settlement funds.

    Source: Bloomberg