Source: Chris Scott, MEATINGPLACE, 8/31/18


Another retailer has filed a lawsuit in a federal court accusing Tyson Foods Inc., Perdue Farms and more than 15 other chicken companies of working together to inflate chicken prices over an eight-year period.

The complaint from BJ’s Warehouse Club filed in an Illinois federal court this week accuses the producers of artificially limiting the number of chickens brought to market by destroying eggs and breeder hens in a coordinated attempt to raise prices. The alleged efforts between 2008 and 2016 harmed the retailer’s business, since BJ’s purchased billions of dollars worth of chicken during the period. Chicken feed costs also fell by as much as 23 percent over the eight years, the suit contends, which was not reflected in the product pricing. 

BJ’s Wholesale Club is seeking damages to be set under federal antitrust laws and triple those damages, in addition to attorneys' fees and litigation expenses.

Earlier this summer, Albertsons Companies Inc., Kroger Co. and Hy-Vee Inc. — following a similar complaint from Winn-Dixie Stores in January — filed a similar lawsuit against major U.S. chicken producers alleging price-fixing over the same eight-year period. Other plaintiffs accusing chicken producers of price-fixing also include a group of food distributors and grocery retailers, who filed their own lawsuit this spring. 

Tyson Foods previously has said the antitrust claims are unfounded, and the company will “continue to vigorously defend” itself, a spokesperson told Meatingplace today. Perdue has previously said the earlier allegations were without merit. 

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