February 26, 2021

 

Pilgrim's Pride pleads guilty to chicken price fixing charge

 

 

Pilgrim's Pride Corp pleaded guilty to US federal charges on February 23 for fixing prices of chicken and passing the costs to US consumers, and was sentenced to pay a US$107.9 million fine.

 

A plea agreement was reached in October and the company's chief executive, Fabio Sandri, entered a guilty plea at a hearing before US District Judge Raymond Moore in Denver.

 

The plea followed last year indictments of 10 poultry industry executives, including former Pilgrim's Pride chief executives Jayson Penn and Bill Lovette, on price-fixing charges.

 

Pilgrim's Pride is based in Greeley, Colorado, and owned mainly by Brazilian meatpacker JBS SA.

 

Pilgrim's Pride was the first US poultry company to settle charges that poultry companies conspired to reduce production to boost prices of broiler chickens during 2012 to 2019.

 

Prosecutors estimated that Pilgrim Pride's illegal activity affected at least US$361 million in sales of its broiler chicken products, which account for most chicken meat consumed in the United States.

 

"The fine was less than federal guidelines recommended because of Pilgrim's Pride's substantial assistance," said Moore.

 

Pilgrim's Pride, Tyson, Perdue Farms Inc and Sanderson Farms Inc are also facing federal lawsuits in Chicago filed by consumers, restaurants, supermarket chains and food distributors over alleged price rigging dating back to 2008.

 

The producers were accused of using data from an outside service to review rivals' production and pricing activities, which should have remained confidential.

 

In January, Pilgrim's Pride and Tyson agreed to pay US$75 million and US$221.5 million respectively to settle other claims.

 

 - CNA