Pilgrim’s Pride Agrees to $100M Settlement Over Farmers’ Pay

Pilgrim’s Pride Agrees to $100M Settlement Over Farmers’ Pay

Introduction

Pilgrim’s Pride, a major U.S. poultry processor, has agreed to a $100 million settlement to resolve allegations of conspiring with other poultry companies to underpay chicken farmers.

This settlement is the final and largest in a seven-year antitrust case, which still requires approval from U.S. District Judge in Utah. Pilgrim’s Pride, based in Greeley, Colorado, denies any wrongdoing.

The case accused major poultry producers of colluding to keep farmers' pay low by sharing confidential compensation data and agreeing not to poach each other’s farmers. With this settlement, the total recovery for the case will reach $169 million, minus legal fees and other expenses.

Previously, Tyson Foods, Sanderson Farms, Koch Foods, and Perdue Foods settled for $21 million, $17.75 million, $15.5 million, and $14.75 million, respectively. The settlement covers a class of 24,354 growers from January 27, 2013, to December 31, 2019.

A lawyer representing the farmers hailed the settlement as a significant antitrust resolution, likely the largest ever for a meatpacker or poultry processor. Growers, who provide the land, labor, and equipment to raise chickens, then return the birds to the processors for slaughter.