Ranchers File Suit Against Big Packing Companies

An organization representing US cattle and sheep producers has filed a class action lawsuit  against America’s four largest packing companies. The suit alleges antitrust and other violations by unlawfully depressing the prices paid to ranchers. Filed April 23, the suit names Tyson Foods, Inc., JBS S.A., Cargill, Inc., and National Beef Packing Company Those entities collectively purchase and process more than eighty percent of US cattle annually. Plaintiffs claim the defendants acted in concert to reduce their slaughter volumes and purchases of cattle to create a glut of slaughter-weight fed cattle, manipulated the cash cattle trade to reduce price competition and deliberately closed slaughter plants to ensure the underutilization of available beef packing capacity. A statement issued by a Tyson spokesman said there was no merit to the allegations and the company would “will vigorously defend itself and its proud heritage of supporting America’s farmers and ranchers.” An attorney for the plaintiffs called the impact of the packers’ conduct on American cattle ranchers catastrophic.