BJ’s Wholesale now alleging broiler industry collusion

B.J.’s Wholesale Club is suing Agri-Stats and 19 of the top broiler companies in the United States, alleging that the entities conspired to raise the price of chicken.

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Jason Morrison, Freeimages.com
Jason Morrison, Freeimages.com

B.J.’s Wholesale Club is suing Agri-Stats and 19 of the top broiler companies in the United States, alleging that the entities conspired to raise the price of chicken.

In its suit, B.J.’s Wholesale Club alleges that the broiler companies coordinated efforts to raise prices and limit the number of chickens in the market by destroying chicken eggs and breeder hens. It is also alleged that the broiler companies used a data company to determine competitors’ production statistics and coordinate their actions to fix the market.

BJ’s is also accusing the producers of manipulating the Georgia Department of Agriculture’s market benchmark price between 2008 and 2016, according to a press release on the website of Arentz Law Group, a firm representing B.J.’s Wholesale in the case, which was filed in the United States District Court for the Northern District of Illinois, Eastern Division.

Broiler companies named in the suit include: Tyson Foods, Pilgrim’s Pride, Koch Foods, JCG Foods, Sanderson Farms, House of Raeford Farms, Mar-Jac Holdings, Perdue Farms, Wayne Farms, Fieldale Farms, George’s Inc., Simmons Foods, O.K. Foods, Peco Foods, Harrison Poultry, Foster Farms, Claxton Poultry and Mountaire Farms.

According to the company’s website, BJ's Wholesale Club Holdings is headquartered in Westborough, Massachusetts, and is a leading operator of membership warehouse clubs on the East Coast of the United States. The company currently operates 215 clubs and 135 BJ's Gas locations in 16 states.

Similar lawsuits against broiler companies

B.J. Wholesale’s suit is very similar to other lawsuits that have been filed in 2018, with the most recent one being filed in July on behalf of Kroger, Albertsons Companies and Hy-Vee.

Prior to that, another class-action lawsuit was filed in January on behalf of Sysco, U.S. Foods Holding Corp. and Winn-Dixie Stores, against many of the same companies, alleging that beginning in 2008, chicken companies began to coordinate to cut the country’s chicken supply to drive up wholesale prices.

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