March 31, 2022

Canada's four biggest meatpackers allegedly price-fixing beef for years

Canada's four biggest meatpackers, Cargill, JBS USA, Tyson Foods, and National Beef Packing Company, have been sued by non-profit consumer organisation Option consommateurs for allegedly price-fixing beef by restricting competition related to the supply, output, or sale of beef in Quebec province, Toronto Star reported.

Option consommateurs filed a class action lawsuit, and members of the class action includes any person who bought beef in the province on or before January 1, 2015.

The four companies own 85% of Canada's beef market and 80% of the US market, according to the lawsuit.

Cargill said the claims lack merit, adding that they compete in the market and conduct ethical business. The company said they are certain of their efforts to preserve the integrity of the market for its consumers and customers.

The remaining three meatpackers have not responded to requests for comment.

Data from Statistics Canada showed beef prices between January 2021 to January 2022 increased 13%. Prices for certain beef products in the country increased even before the COVID-19 pandemic. Prime rib roast costed CAD 28.61 (~US$22.94; CAD 1 = US$0.80) in 2015, CAD 31.99 (~US$25.65) in January 2019, and CAD 43.79 (~US$35.12) in January 2022.

Sylvie De Bellefeuille, a lawyer with Option consommateurs, said the lawsuit looks for a judgement to order the meatpackers to compensate members an amount equal to the profits earned from the artificial inflation of the selling price.

De Bellefeuille said the organisation discovered the price-fixing after being alerted of a similar class action lawsuit filed in British Columbia province against the same four meatpackers.

In the US, JBS USA paid US$52 million to settle a lawsuit accusing meatpackers of conspiring to restrict beef supply in the country to inflate prices and increase profit.

-      Toronto Star