Some of the largest suppliers and producers of pork in the U.S. face a new lawsuit claiming the unlawful, artificial inflation of prices.
Retail player Aldi Inc. filed the complaint in the Northern District of Illinois against Agri Stats, Inc., as well as Clemens Food Group, LLC, Clemens Family Corporation, Hormel Foods Corporation, Hormel Foods LLC, Seaboard Corporation, Seaboard Foods LLC, Smithfield Foods, Inc., Triumph Foods, LLC, Tyson Foods, Inc., Tyson Prepared Foods, Inc. and Tyson Fresh Meats, Inc. These suppliers collectively control approximately 80% of the U.S. wholesale pork market.
Aldi claims that since 2009, it has purchased pork at artificially inflated prices. Aldi alleges the defendants had coordinated with one another to restrict pork outputs with the intention of raising and stabilizing pork prices in the U.S. Furthermore, Aldi states this was effectively completed with conspirator, Agri Stats, Inc., by exchanging detailed, sensitive information that would not typically be shared in a competitive market. This includes details on prices, capacity, sales volume and demand.
Agri Stats, Inc., serves as a partner to poultry, commercial egg and swine companies to help identify efficiency opportunities at all levels of production. They provide and utilize customized reports and information to show detailed performance data of the client’s operation and how it compares to similar organizations in the industry.
Aldi pointed out that the defendant, specifically Agri Stats, Inc., was a large player in the In re Broiler Chicken Antitrust Litigation. Similarities from the broiler chicken litigation raise significant antitrust concerns.
