Chicken suppliers fall amid allegations of collusion

Business


Food suppliers US Foods and Sysco have initiated separate lawsuits accusing numerous large poultry suppliers of colluding to manipulate wholesale chicken prices, The Wall Street Journal reported Wednesday.

The two companies, which are the largest food suppliers to U.S. restaurants in the country, alleged that the poultry processors, including Tyson Foods, Pilgrim’s Pride and Sanderson Farms, have artificially limited supplies and inflated prices for years, according to the report.

Shares of Tyson Foods fell more than 3 percent on Wednesday. Shares of Pilgrim’s Pride and Sanderson Farms both declined more than 4 percent.

“Complaints like these are common in antitrust litigation,” a Tyson Foods spokesman told CNBC. “Such complaints do not change our position that the claims are unfounded. We will continue to vigorously defend our company.”

US Foods, Sysco, Pilgrim’s Pride and Sanderson Farms did not immediately respond to CNBC’s requests for comment.

This is breaking news. Please check back for updates.

Read the full report from The Wall Street Journal.



Source link

Products You May Like

Articles You May Like

Kroger CFO Michael Schlotman to step down April 3
Treasury yields lower; Fed meeting in focus
Renault demands Nissan shareholder meeting amid Carlos Ghosn crisis
A.I. industry suffers from deep gender gap, World Economic Forum says
Small cap stocks enter bear market, with Russell 2000 benchmark down 20% from highs

Leave a Reply

Your email address will not be published. Required fields are marked *