Fast-food giant McDonald’s has filed a lawsuit against some of the largest meat processors in the US, alleging they colluded in a price-fixing cartel.
The burger heavyweight has accused agri-food major Cargill, the US subsidiaries of Brazilian meat giant JBS and local meat producers Tyson Foods and National Beef of conspiring to limit beef supplies. McDonald’s claims the alleged action forced the Big Mac maker to pay inflated prices for meat.
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In a lawsuit filed in the US District Court, Eastern District of New York, seen by Just Food, McDonald’s alleges that “at least as early as approximately January 1, 2015, and continuing through the present and with an effect thereafter, [the] defendants and their co-conspirators engaged in a contract, combination or conspiracy in restraint of trade or commerce in violation of Section One of the Sherman Act”.
It said: “The goal of their conspiracy was to fix, raise, stabilise and/or maintain the price of beef sold to [the] plaintiff and others at supra-competitive levels – that is, prices artificially higher than beef prices would have been in the absence of their conspiracy.”
McDonald’s added the “defendants’ conspiracy was effective and achieved that goal”.
The largest meatpackers in the US have faced a number of claims that their profits have risen on the back of meat prices being kept artificially high. These claimants have included retailers Target and Kroger and cattle ranchers.
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By GlobalDataMcDonald’s alleges that “only colluding meatpackers would expect to benefit by reducing their prices and purchases of slaughtered cattle, fully aware that their conspiracy would shield them from the pressures of a competitive market”.
Just Food has contacted the meat companies accused in the lawsuit for a response, outside of US office hours.
McDonald’s, one of the largest companies in the world with 39,000 locations globally, is seeking unspecified monetary damages and a court order to end the alleged price-fixing scheme. The chain has also requested a trial by jury.
