McDonald’s has filed a lawsuit against Tyson Foods and other major meat processing companies, accusing them of conspiring to limit beef supplies and drive up prices. The lawsuit alleges that these companies, which also include JBS, Cargill, and National Beef Packing, systematically reduced production levels starting in 2015 to artificially raise market prices. According to the complaint, the meatpacking giants used their significant control over the cattle and beef industry to manipulate prices.
McDonald’s claims this collusion allowed the companies to increase their profits while forcing buyers, including McDonald’s, to pay inflated prices for beef. “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,” McDonald’s stated in the lawsuit.
McDonald’s lawsuit over beef prices
The “Big Four” beef companies account for about 80% of all fresh and frozen beef sold in the U.S., with the next largest competitor holding less than 3% of the market share. The lawsuit is part of broader allegations against these meatpacking giants regarding violations of U.S. antitrust laws and coordinated efforts involving cattle pricing. In June 2020, the Department of Justice (DOJ) Antitrust Division issued civil subpoenas to Tyson Foods, JBS, Cargill, and National Beef to gather information about their pricing practices, particularly records dating back to January 2015.
Earlier this year, retail giants such as Target and Kroger highlighted concerns about rising beef prices and profits, while cattle ranchers attempted to challenge the meatpacking giants but struggled to provide sufficient evidence of direct harm from the alleged anti-competitive behavior. McDonald’s, one of the largest companies in the world with 13,000 U.S. restaurants and 39,000 locations globally, is seeking unspecified monetary damages and a court order to end the alleged collusion. The chain has requested a trial by jury.
