JBS SA, the world's largest meatpacker and processor, has agreed to pay $25 million to commercial beef purchasers in Michigan and across the U.S. The purchasers had accused the company of conspiring to restrict market supply in order to keep beef prices high. This proposed settlement, which was reached in a Minnesota federal court, marks the second settlement from JBS and its U.S. units.
Michigan Farm Bureau Industry Relations Specialist, Ernie Birchmeier, stressed the importance of upholding anti-trust and monopoly laws in the U.S., stating that it is imperative for livestock producers to have the ability to market their livestock in a competitive and open-market system. This sentiment has been echoed by others in the industry, as meat processors such as Cargill Inc. and Tyson Foods Inc. also face scrutiny over price-fixing allegations.
The Department of Justice has been ramping up its investigation of meat companies due to industry-wide consolidation. In 2020, lawsuits were filed by plaintiffs including restaurants, supermarket chains, farmers, and other meat buyers.
As the meat processing industry continues to face scrutiny, the enforcement of existing laws can go a long way in addressing challenges such as packer ownership, price discovery and transparency, and competition in the markets.
Categories: Michigan, Livestock, Beef Cattle