Chicken suppliers agree to pay Washington state $36M to settle price-fixing allegations

Fourteen chicken suppliers have agreed to pay the state of Washington more than $36 million to settle a lawsuit accusing the group of fixing the prices they charged foodservice operations starting in 2008.

Five more poultry processors are not part of the settlement and will remain defendants, with a trial scheduled to begin October 2024.

Washington Attorney General Bob Ferguson said the money will be channeled down to the parties that were overcharged. His office says a plan for the distribution is currently being drafted.

Ferguson said in an announcement of the deal that 7 million Washington residents—90% of its population—ultimately paid more than market value for chicken because of an alleged conspiracy by the 19 suppliers to drive up prices.

“The scheme impacted virtually everyone who consumes chicken products,” the announcement stated. It specifically mentioned consumers of chicken sandwiches and nuggets purchased from fast-food restaurants.

The affected restaurant chains included KFC, Popeyes Louisiana Kitchen and Boston Market, the state said.

“The producers colluded down to the tenth of a penny per pound of chicken to ensure their bulk meat brought each company the most profit,” it said.

The processors engaged in a “widespread illegal conspiracy” that extended to rigging contract bids, sharing information and coordinating supply reductions, Ferguson’s office said.

Included in the settlement group were such major industry suppliers as Pilgrim’s Pride, Tyson, Perdue, Koch Foods and Amick Farms.

As part of the settlement, the vendors have agreed to provide state legal officials with information for use in the suit against the five remaining defendants.

They also agreed to provide training and certify they have policies in place to prevent further anti-trust activity.

The settlement announced Wednesday is the latest development in a long-running effort by governments at all levels to identify and penalize anti-trust activity by protein suppliers.

Legal actions similar to Washington’s lawsuits are pending in Alaska and New Mexico. The federal government has also taken action.

The settlement was announced as eateries are coming off a stretch of unprecedented food-price inflation.

The suppliers that entered into the settlement and the amount each agreed to pay are:

Pilgrim’s Pride               $11 million
Tyson                              $10.5 million
Perdue Farms                $6.5 million
Koch Foods                    $1.4 million
Peco Foods                    $800,000
Montaire Farms            $750,000
George’s                         $750,000
Mar Jac                           $725,000
Amick Farms                  $600,000
Fieldale Farms               $475,000
Simmons Foods            $425,000
Case Foods                    $395,000
O.K. Foods                     $375,000
Harrison Poultry           $290,000