Lawsuit

Meat Companies Accused of Artificially Inflating Pork Prices

Jim Rogers Industry News Release

LawsuitA class action lawsuit is accusing Hormel, Tyson Foods, and other meatpacking companies of artificially raising the price of hot dogs, bacon, and other pork products with the help of a company called Agri Stats, an info-sharing service. A Bloomberg report says the complaint was filed by a group of meat buyers in a Minnesota court on Thursday.

The complaint accuses the meat packers of conspiring with the service to exchange “detailed, competitively sensitive, and closely-guarded non-public information.” The buyers claim that the scheme boosted prices by more than 50 percent. The “year-average” price in the hog market was $76.30 in 2015, after being at or below $50 annually from 1998-2009.

Hormel Foods issues a statement saying, “Hormel Foods is a 127-year-old global branded food company with a reputation as one of the most respected companies in the food industry. We are confident that these allegations are completely without merit and intend to vigorously defend this lawsuit.” A Tyson spokesman says they haven’t seen a copy of the lawsuit so they’re unable to comment on it.

 

From the National Association of Farm Broadcasting News Service.