The ‘Big Four’ beef packing companies in the United States are now facing four additional lawsuits, filed in the U.S. District Court for the Eastern District of New York. These suits allege that the companies have been conspiring to manipulate the price of beef sold to retailers since 2015.
These New York cases are consistent with allegations in recent lawsuits in North Carolina, Illinois, and a 2022 case brought by several quick-service restaurant chains. An earlier case from Illinois, along with others, has been consolidated in the Minnesota District Court as part of the Multidistrict Litigation involving similar antitrust cases.
This new round of lawsuits follows a pattern of legal challenges against the beef packing industry, which previously led to significant settlements. These developments coincide with investigations by the Department of Justice and Congressional scrutiny of these companies’ practices.
In the latest New York lawsuits, plaintiffs including BJ’s Wholesale Club Inc., Gordon Food Service Inc., Glazer Foods Co., Quality Supply Chain Co-Op Inc. (QSCC), and Target Corp. accuse Cargill Inc., JBS S.A., National Beef Packing Co., and Tyson Foods Inc. of colluding to inflate beef prices. The court documents claim that these actions artificially raised beef prices.
The lawsuits also involve several affiliates of the four processors, accusing them of anti-competitive practices in violation of the Sherman Act, particularly concerning the pricing of boxed and case-ready meat. In 2018, these companies reportedly sold about 80% of over 25 million pounds of fresh and frozen beef in the U.S. market.
Additionally, the lawsuits mention 2020 investigations by the U.S. Department of Justice and the USDA into the beef pricing practices of these companies, dating back to at least 2015. This ongoing legal situation highlights the concerns about competitive practices in the U.S. beef industry.
