Source: MEATINGPLACE, 11/4/11

The U.S. Department of Justice is asking a federal court to sign off on a proposed final judgment in its antitrust suit against George’s Foods that calls for the company to make improvements to its Shenandoah Valley processing facilities.

The DOJ in May sued George’s, saying its purchase of Tyson Foods Inc.’s Harrisonburg, Va., poultry complex would harm competition for grower services in the Shenandoah Valley. 

The complaint alleged the acquisition, completed in May, reduced the number of competitors in the region to two from three and gave George’s about 40 percent of the processing capacity in the market. It said the effect would allow George’s to force growers to accept lower prices and less favorable terms for their services.

In documents filed recently in the U.S. District Court of Virginia, the DOJ said the proposed final judgment would remedy the expected anticompetitive aspects of the transaction by ensuring George’s has the ability and incentive to increase production at its facilities. The proposed capital improvements include installation of an individually frozen (IF) freezer and a whole leg or thigh deboning line at either George’s Harrisonburg or Edinburg plants and repairs to the roof of its Harrisonburg plant.

The court filing can be viewed here.