US: New suit against poultry giants alleges price-fixing conspiracy

The Chicago Tribune reported grocery store chain Winn-Dixie and a sister company have sued Tyson Foods, Perdue Farms and Koch Foods. A federal judge refused to dismiss a similar lawsuit two months ago. Allegations include that the companies destroyed breeder hens and eggs to reduce the chicken supply, bumping up the price of chickens 50% since 2008

In the suit filed Friday, January 12, in US District Court in Chicago, Jacksonville, Florida-based Winn-Dixie Stores and Bi-Lo Holdings allege the companies conspired to fix the price of chickens for nearly a decade, in part by “destroying” their own breeder hens and eggs to hamper production, according to a lawsuit. Since 2008, the coordinated production cuts have resulted in a roughly 50 % increase in the price of broiler chickens — the most popular kind of chicken meat in the country, according to the lawsuit.

The chicken manufacturers named in the suit together control about 90% of the US$30 billion broiler market, according to the lawsuit.

Tyson spokesman Worth Sparkman called Friday’s case an “add-on lawsuit” and said it doesn’t “change the fact that these claims are unfounded because we’ve not done anything wrong.” He said, “We will defend our company in court.”

Full Content: Chicago Tribune

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