Source: MEATINGPLACE, 11/11/11


A U.S. District Court judge has approved the sale of Tyson Foods’ Harrisonburg chicken plant to George’s Inc. with conditions.

George's must add a freezer and fix the roof at the plant. It also must install a deboning line there or at its Edinburg plant.

Judge Glen E. Conrad accepted the final judgment in the lawsuit, which was brought by the U.S. Department of Justice in May. The Justice Department had alleged the deal would reduce competition for chicken growers 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.

The 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.

According to the judgment, George's has two months to show the Justice Department it has contracts for the repairs and improvements. George's is also expected to extend farmers’ contracts.

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