Sunday, 16 June 2019

Walmart sues poultry industry

Walmart Inc. has filed suit against the U.S. poultry industry for alleged price collusion and violation of antitrust laws.

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It claimed that several chicken meat companies make plans for raising the price of the product over a period of eight years.

Walmart claims that these companies have agreed to each other to share proprietary information that has led to a reduction in the supply and manipulation of indicators affecting the cost of chicken meat over the past 8 years.

This complaint has been made under circumstances where similar cases have never been concluded and the proceedings are very difficult and proof of such a claim will require sufficient evidence.

Some chicken retail companies believe that the manufacturers of this product, through cooperative agreements, are pursuing mechanisms that will lead to an increase in the price of this product.

Walmart's chief communications officer Randy Hargrove told reporters that the complaint was made to stop the artificial increase in chicken meat prices and to protect the business and customers of Wal-Mart.

"For more than 50 years, we have been focusing on the low price of and rising prices will keep us out of our goals," He said.

Plaintiffs in the lawsuit include Walmart stores throughout the Southeast region and wholesale retailer Sam's stores. The defendants are Pilgrim's Pride, Koch Foods, Sanderson Farms, House of Raeford, Mar-Jac Poultry, Perdue Farms, Wayne Farms, OK Foods, Peco Foods, Harrison Poultry, Foster Farms, Claxton Poultry, Mountaire Farms, Amick Farms, Case Foods, and Agri Stats.

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