USA – McDonald’s is currently pursuing legal action against four prominent beef suppliers in the U.S.,  JBS, Tyson Foods, Cargill, and National Meat Packing.

The company is alleging that they have engaged in practices that artificially inflate beef prices. 

According to McDonald’s, these companies have been conspiring to manipulate beef prices since 2015 by purchasing cattle at rates below competitive levels, resulting in higher costs for consumers.

The lawsuit was submitted on October 4 in federal court in Brooklyn and claims that the accused suppliers control approximately 85% of the beef market in the United States. 

It highlights the operations of JBS, Tyson, and Cargill, focusing on their facilities in Iowa and Minnesota. 

Specifically, the complaint references plants located in Albert Lea, Big Lake, Cold Spring, Pipestone, and Worthington in Minnesota, as well as in Council Bluffs, Marshalltown, and Ottumwa in Iowa. 

McDonald’s is seeking damages for the alleged price manipulation, as well as a cessation of the purported collusion among these suppliers.

This lawsuit marks McDonald’s as the latest entity to challenge the four major meatpackers for their alleged violations of the Sherman Antitrust Act. 

Other plaintiffs, including ranchers, cattle sellers, and consumers, have previously brought similar claims against Tyson, Cargill, JBS, and National Beef, with many of these cases consolidated in federal court in Minnesota.

Representatives from Tyson, Cargill, National Beef, and JBS have not responded to requests for comments regarding this specific lawsuit, although they have denied similar allegations in previous cases. 

McDonald’s has also not provided a comment in response to inquiries.

In 2022, JBS reached a settlement of US$52.5 million in one case brought by direct purchasers. 

Last year, U.S. District Judge John R. Tunheim dismissed a case initiated by ranchers who claimed to be adversely affected by the practices of meatpackers, despite the ranchers not having sold cattle directly to these companies.

The actions of the meatpackers have faced scrutiny beyond the courtroom as well. 

In 2020, the Justice Department reportedly issued subpoenas to the four companies as part of an antitrust investigation.

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