On April 23, the U.S. District Court in the Northern District of Illinois began hearings on four major US meat processing companies on charges of violating federal antitrust laws, namely, intentionally lowering purchase prices for cattle purchased from ranchers.

Tyson Foods Inc, Cargill Inc, a division of JBS USA in Brazil, JBS SA and National Beef Packing Co, are accused of conspiring to lower the purchase price of “beef” livestock, which is raised specifically for beef production, in order to increase margins and profitability.

A 104-page complaint was filed with the court, prepared by the United States of America Cattlemen Law Enforcement Fund (R-CALF) and four cattle breeders, demanding compensation, penalties and triple damages.

This is reminiscent of a lawsuit in the same court in which companies, including Tyson Foods Inc and JBS, are accused of conspiring to set broiler and pork prices. Tyson Foods Inc said the current lawsuit is “unfounded,” and that, like the chicken and pork lawsuits, there is no basis for a conspiracy charge.

According to a lawsuit complaint, Tyson, Cargill, JBS and National Beef entered into a conspiracy to lower prices using tactics such as unprofitable imports of foreign livestock, closing slaughterhouses and reducing slaughter and procurement. The conspiracy "encouraged concerns among producers that they would not be able to" slaughter cattle "if prices were not reduced, and led to an artificial reduction in prices for fattened cattle by an average of 7.9%.

R-CALF Executive Director Bill Bullard said the lawsuit was filed to “prevent the Big Four meat processors from taking over the American cattle market and driving independent cattle producers into the US out of it.” We hope that American herders can receive compensation for years of significant losses. "