Two giant food-distribution
companies have filed court action against chicken processors, claiming they
conspire to set wholesale prices.
Farmers have also accused
the companies of colluding to set production-contract terms and compensation.
Sysco Corp. and U.S. Foods Inc. sued Tyson Foods Inc,
Pilgrim’s Pride Corp, Sanderson Farms and Perdue Farms in separate complaints
filed in federal court on Tuesday.
Tyson, the biggest U.S. chicken company, and Pilgrim’s
Pride denied the latest accusations.
Sanderson Farms said it will defend itself against the
claims, while privately held Perdue declined to comment.
The court action came the same day as the Competition
Bureau in Canada filed documents indicating it believes bread companies met
with major supermarket chains to tell them they had agreed to price increases
and to promise they would not offer their supermarket competitors better deals.