US Farmers Raise Antitrust Concerns Following The Closure Of A Tyson Foods Plant
US farmers have raised antitrust concerns following the closure of a Tyson Foods poultry processing plant, reported Reuters.
Tyson Foods issued a two-month notice to its chicken suppliers of their plans to close its processing plant in Virginia come May. Such short notice has drawn criticism from others in the industry as well as legal experts, who’ve been concerned that such action isn’t compliant with antitrust regulations that require 90 days’ advance notice preceding the termination of a contract.
Dozens of Virginia chicken growers face an uncertain future with the closure of a nearby plant, creating a predicament due to the limited number of alternative buyers in the area.
Related: Tyson Settles Chick-fil-A Antitrust Suit
It could also expose Tyson to fines under the century-old Packers and Stockyards Act (PSA), the U.S. antitrust law requiring the minimum advance warning, according to Peter Carstensen, a professor of law emeritus at the University of Wisconsin-Madison Law School who previously served in the antitrust division at the U.S. Department of Justice.
Tyson told Reuters the company is not canceling any farmers’ contracts and instead has committed to paying the growers for the full-term of their remaining contracts, keeping in compliance with federal regulations.
Featured News
Pfizer Settles Remaining Effexor XR Antitrust Claims for $25.5 Million
Apr 29, 2024 by
CPI
South Korean Regulator Approves LG Uplus and Kakao Mobility EV Charging Venture
Apr 29, 2024 by
CPI
Federal Judge Dismisses Doctors’ Antitrust Suit Against Ohio Health System
Apr 29, 2024 by
CPI
Paramount CEO Bob Bakish Steps Down as Merger Inches Closer
Apr 29, 2024 by
CPI
EU Brands Apple’s iPadOS as Gatekeeper in Tech Crackdown
Apr 29, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI