Proposed DOJ Settlement Aims To Lower Meat Prices For Consumers

WASHINGTON, D.C. — The U.S. Department of Justice announced a proposed settlement May 7 aimed at stopping what federal officials describe as years of unfair information sharing among some of the nation’s largest meat processors.

According to the Justice Department, Agri Stats Inc., a company that collects and distributes industry data, illegally shared detailed information about prices, production levels, costs, and labor among competing chicken, pork, and turkey companies.

Federal officials said the practice reduced competition and helped meat processors raise prices while coordinating how much meat to produce. The government argues the system ultimately led to higher prices for consumers at grocery stores and restaurants.

The proposed settlement was filed in federal court in Minnesota.

“A stable and affordable food supply is critical to our country’s well-being,” Acting Attorney General Todd Blanche said in a statement.

Agri Stats gathers information directly from meat companies’ accounting systems, organizes the data, and then shares detailed reports back with processors. Prosecutors said the information was not shared with meat buyers such as grocery stores, restaurants, or food distributors, giving processors an unfair advantage during negotiations.

The Justice Department said the reports allowed competing companies to closely monitor each other’s operations and pricing strategies.

If approved by the court, the settlement would require Agri Stats to stop sharing non-public pricing information and detailed company-specific production, labor, and cost data.

The agreement would also:

• Require most Agri Stats information to be made available to meat buyers and other interested parties;
• Limit how quickly company data can be shared;
• Create a court-monitored compliance system;
• Require Agri Stats to establish an antitrust compliance program and whistleblower protections.

The Justice Department said those changes are intended to restore fair competition and improve transparency in the meat industry.

Agri Stats’ subsidiary, Express Markets Inc., would still be allowed to continue publishing broader price reports because those reports are less detailed and available to the public.

The proposed settlement will now go through a public comment period before a federal judge decides whether to approve it.

Federal officials are encouraging anyone with information about possible antitrust violations in agriculture or other industries to contact the Justice Department’s Antitrust Division at 1-888-647-3258.