February 3, 2022

JBS agrees settlement in beef price-fixing claims

JBS SA has agreed to settle a litigation that accused major meatpackers of limiting beef supply to raise prices and increase profits, Reuters reported.

The company will pay US$52.5 million as a preliminary settlement, the first in a nationwide antitrust litigation over beef price-fixing.

In a statement, JBS said it did not admit liability, but the settlement was in the company's best interest. It also said it will defend against beef price-fixing claims by other plaintiffs.

The other defendants include major meatpackers include Cargill Inc, National Beef Packing Co and Tyson Foods Inc, which control an estimated 80% of US fresh and frozen beef supply.

The defendants were accused of working together since 2015 to lower slaughter volumes, resulting in a supply deficit that smaller companies could not make up.

Similar lawsuits have been filed by commercial beef purchasers and consumers. Cattle producers have also sued these major meatpackers claiming they were paid lower than what they would have received in a competitive market.

-      Reuters