December 22, 2023

Nebraska Beef ordered to produce documents in beef price-fixing case

Nebraska Beef Ltd is under a federal judge's order to furnish documents related to a Minnesota beef price-fixing case, with the risk of facing contempt of court if it fails to comply, Meat + Poultry reported.

The directive comes in response to a subpoena filed by JBS, demanding Nebraska Beef to provide essential information for an ongoing case implicating major players in the meat industry. The accusations involve JBS, Tyson Foods, Cargill, Swift Beef Co, and National Beef Packing Co, alleged to have conspired in artificially inflating beef prices while offering below-market rates to cattle suppliers.

JBS aims to leverage the requested information to scrutinise whether cattle suppliers treated independent meat processors, such as Nebraska Beef, differently than JBS. The strategic intent is to establish JBS's innocence in the overarching allegations of price-fixing.

In an April 2023 motion, JBS sought a court order compelling Nebraska Beef to adhere to the subpoena, citing a series of delays and extensions. Nebraska Beef reportedly failed to provide data beyond what was obtained from the US Department of Agriculture, as outlined in the motion.

The motion underscored the significance of Nebraska Beef disclosing information about its contract terms with cattle suppliers, deeming it crucial for comprehending the company's cattle procurement concerning the claims and defences in the ongoing litigation.

In response to the subpoena, Nebraska Beef expressed reservations about sharing information due to the proprietary and confidential nature of the data. US Magistrate Judge Cheryl Zwart addressed these concerns, assuring the company that any disclosed information would be strictly for the eyes of attorneys.

To avert being found in contempt, Zwart has granted Nebraska Beef another opportunity to produce the requested documents by the stipulated deadline.

-      Meat + Poultry