Food distributors Sysco Corp and US Foods Holding Corp. have joined Winn-Dixie Stores and other companies in a lawsuit against some of the largest poultry processors in the country. The lawsuit alleges that the processors conspired to inflate prices.
The distributors filed suit against Tyson Foods Inc., Pilgrim’s Pride Corp., Sanderson Farms Inc. and Perdue Farms in separate complaints files in Federal court in Illinois this week, Reuters reports. Sysco and US Foods allege processors curbed the supply of chickens by colluding to limit breeder birds that produce flocks that are ultimately slaughtered for meat consumption. Agri Stats, a data provider, is alleged to have participated by distributing information about chicken production, giving the processors insights into their competitors’ supplies.
Tyson, Pilgrim’s and Sanderson all issued statements denying the charges.