June 4, 2020

Pilgrim's Pride CEO charged with alleged price-fixing over US chicken

The US Justice Department has charged the Jayson Penn, the president and CEO of Pilgrim's Pride along with three current and former executives with allegedly price-fixing chickens in the United States, Reuters reported.

These are first charges in the country related to price-fixing and bid-rigging over broiler chickens, which came after grocers, retailers and consumers accused Pilgrim's Pride, Tyson Foods and other poultry processors for inflating broiler chicken prices since 2008.

All accused companies have denied the allegations. Pilgrim's Pride shares dropped 12%, Tyson Foods' shares fell 4% and Sanderson Farms' shares down 6%.

Pilgrim's Pride said it will cooperate with the US Justice Department in investigations.

The accusation is over price-fixing of chicken from 2012 to early 2017, referencing executives' emails and text messages.

The other Pilgrim's Pride executives accused are Roger Austin, former Pilgrim's Pride vice president; Claxton Poultry president, Mikell Fries; and Scott Brady, Claxton vice president.

A Claxton spokesman did not comment on the accusations. The accused executives were not reachable for comment.

Major Brazilian meatpacker JBS SA has majority ownership over Pilgrim's Pride.

-      Reuters