May 21, 2021

US chicken producer Claxton Poultry Farms Inc charged with price-fixing

The United States Justice Department said Claxton Poultry Farms Inc has been charged with price-fixing broiler chickens meant for sale to grocery stores and restaurants, Reuters reported.

Claxton Poultry Farms president Mikell Fries and vice president Scott Brady were charged previously as part of a nationwide chicken price-fixing conspiracy from 2012 to 2019.

The company would be fined US$100 million or twice what it profited from the price-fixing if found guilty.

The Georgia-based company sells 300 million pounds of chicken per year to 750 customers, including major chains.

Pilgrim's Pride Corp, one of the biggest poultry producers in the United States, pleaded guilty to chicken price-fixing in February and was fined US$107.9 million to settle federal charges. The company, mainly owned by Brazilian meatpacker JBS SA, was charged with conspiring to fix chicken prices, and passed on the costs to consumers and other purchasers.

- Reuters