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Poultry Industry Collusion

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Tyson and other poultry companies accused of price collusion

 

https://www.cnbc.com/2018/01/31/chicken-suppliers-fall-amid-allegations-of-collusion.html

 

***Food suppliers US Foods and Sysco have initiated separate lawsuits accusing numerous large poultry suppliers of colluding to manipulate wholesale chicken prices, The Wall Street Journal reported Wednesday.

The two companies, which are the largest food suppliers to U.S. restaurants in the country, alleged that the poultry processors, including Tyson Foods, Pilgrim's Pride and Sanderson Farms, have artificially limited supplies and inflated prices for years, according to the report.***

 

well...this doesn't sound good

any insider info here?

(hope this is the right forum for this content)

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These sorts of suits occur a lot in pharma.

 

The distributors want to be the ones to price-fix.

 

Hard to pick a side to root for.

 

The lawyers are the ones who win and in my experience the consumers don't see any benefit.

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I can tell you that Tyson, Pilgrims and Sanderson are all in COMPLETE control of the price of their poultry (the grower gets whatever they give him; it's as close to slave labor as you can get). There at least used to be a fair bit of crossover membership among the boards of the three. Don't know if there still is or not. 

 

All of which goes to say, I wouldn't be a bit surprised. 

 

 

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On 1/31/2018 at 2:56 PM, kayb said:

...the grower gets whatever they give him; it's as close to slave labor as you can get...

 

 Commodity agriculture—been there, done that! It's insanity!

 

"For the farmer, is the only man in our economy who has to buy everything he buys at retail - sell everything he sells at wholesale - and pay the freight both ways." ~JFK

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