Hy-Vee, Kroger and Other U.S. Retailers Accuse Pork Processors of Price Fixing

Several major U.S. supermarket chains and a food distributor filed a federal lawsuit last week accusing pork processors of conspiring to fix pork prices from at least 2009 in a suit similar to other litigation facing pork and poultry companies for the last few years.

In the suit filed in the Northern District of California on Dec. 28, the plaintiffs accused the processors and their affiliates of working with Indiana Packers Corp. to “fix, raise, maintain and stabilize the price of pork” in U.S. markets in violation of the Sherman Act, Law Street Media reports.

The plaintiffs include: The Kroger Co., Albertsons Companies Inc., Hy-Vee Inc., Save Mart Supermarkets, and US Foods, Inc. Meanwhile, the defendants are: Agri Stats, Inc.; Clemens Food Group, LLC; The Clemens Family Corporation; Hormel Foods Corporation; Hormel Foods, LLC; JBS USA Food Company; Seaboard Foods LLC; Seaboard Corporation; Smithfield Foods, Inc.; Triumph Foods, LLC; Tyson Foods, Inc.; Tyson Prepared Foods, Inc.; and Tyson Fresh Meats, Inc.

Clemens Food Group, Hormel Foods Corp., JBS USA, Seaboard Foods, Smithfield Foods Inc., Triumph Foods and Tyson Foods Inc. allegedly controlled the production and supply of pork in a coordinated effort to minimize production and boost prices by lowering the number of hog farms in operation by 70%, the suit said.

Most of the defendants are facing similar accusations in lawsuits filed by restaurant chains Buffalo Wild Wings, Sonic and Jimmy John’s in Florida last November. The lawsuit claims Agri Stats collected information from the producers beginning in 2009 for benchmarking reports that features profit and production data. The reports allowed the producers to monitor one another’s production and control the supply and price of products in the marketplace, the lawsuit argues.

Kroger and the other plaintiffs are seeking damages “to the maximum extent allowed under law,” attorney’s fees and costs, and other relief, Law Street Media reports.

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