US Chicken Industry Caught Price Fixing for 5 Years... 4 Individuals Indicted

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] It has been revealed that major U.S. chicken producers colluded to fix the prices of chicken supplied to restaurants and grocery stores over five years, leading to the collective indictment of those involved.

On the 3rd (local time), Bloomberg News and others reported that the U.S. Department of Justice confirmed that four chicken companies, including Pilgrim's Pride, colluded on chicken prices and manipulated bids from 2012 to 2017. Consequently, those involved, including Jason Penn, CEO of Pilgrim's Pride, were indicted. This is the first time in the U.S. chicken industry that price-fixing has led to an indictment.

The U.S. Department of Justice ordered an investigation into this chicken price-fixing last summer. The lawsuit also includes allegations that chicken producers shared information through a third-party market intelligence company and limited the number of hens to restrict chicken supply. According to the indictment, CEO Penn and others frequently communicated via text messages to maintain or raise chicken prices.

Makan Delrahim, U.S. Deputy Assistant Attorney General for Antitrust, stated, "They deceived American consumers, restaurants, and grocery stores, jeopardizing the integrity of the food supply." He added, "We will firmly address crimes that burden Americans amid a global crisis."