New Antitrust Lawsuit Targets U.S. Poultry Processors

A recent antitrust lawsuit filed in federal court in Oklahoma has brought attention to the alleged collusion among some of the nation’s leading poultry processors. Accused companies, including Foster Farms, Mountaire, George’s, and House of Raeford, are facing serious allegations of conspiring to suppress wages and limit competition for chicken growers.

Details of the Allegations

The lawsuit outlines a proposed class action claiming that poultry growers—who provide the necessary land, labor, and equipment to raise chickens—were subjected to an unlawful “no-poach” agreement among processors. This agreement is purported to have stifled competition by preventing these companies from recruiting growers away from each other, thus sustaining below-market wages and obstructing fair negotiation processes.

Expanding Legal Challenges

This case builds upon previous lawsuits targeting other significant players in the poultry industry, such as Pilgrim’s Pride and Tyson Foods, both of which reached settlements without admitting liability. Pilgrim’s Pride agreed to a $100 million settlement, while Tyson Foods settled for $21 million. A judge has already ruled that over 24,000 growers could potentially pursue collective damages, adding up to an alarming $924 million.

Implications for the Poultry Industry

The latest lawsuit adds to the increasing scrutiny of labor practices within the U.S. meat and poultry industry. It seeks not only financial compensation for the affected growers but also a legal injunction to prevent further anticompetitive practices. Titled Haff Poultry et al v. Mountaire Farms Inc et al, this case represents a critical moment for growers across various states, including Texas, Oklahoma, and Mississippi.

Conclusion

As the lawsuit unfolds, the potential ramifications could reshape labor relations and compensation practices within the poultry sector. The outcome may not only influence current growers but also set a precedent for the entire agricultural industry moving forward.