|

In America wondered if the monopoly on the market of chicken meat

KIEV. 14 Feb. UNN. Leading distributors of food in the United States accused the largest U.S. poultry company to build a monopoly in the market of chicken meat. It is reported by the Washington Post, reports UNN.

It is about 4 leading companies of poultry farming in the United States — “Tyson”, “Perdue”, “Pilgrim’s Pride” and “Koch Foods”. American distributors of food products “Sysco Corp. and US Foods Holding Corp” charged poultry farmers in cartel cases. They argue that the chicken producers had conspired to raise prices on the product across the country.

It is noted that in relation to poultry farmers this is the third lawsuit in less than two years. The first lawsuit was filed by a distributor of food products “Maplevale Farms” in September 2016, the second — “Bi-Lo Holdings” and “Winn-Dixie Stores” in January 2017. The initiators of the third claim — “Sysco Corp. and US Foods Holding Corp” refused to comment on the case until after the trial.

American poultry company in turn denied allegations of collusion and consider the arguments of the distributors of food are unfounded. It is noted that the cost of the product was influenced by a number of factors, including consumer demand and the rising cost of feed.

Also, according to the Department of agriculture, in the period from 2008 to 2009, the number of broiler chickens produced in the United States, fell by almost half. And although since then the rate of production of the product has increased, it has not reached its high of 2008.

Critics of the poultry industry believe that the problem lies in the consolidation of the market. According to WattAgNet (an online community of professionals in the industry of poultry farming and feed, ed.), three American companies are producing 46% of American Chicks, and the top 10 producers control almost 80 % of the market.

But, in defense of the poultry farmers were well-known journalist Christopher Leonard. He claims that the poultry companies are quite strong and big, and they don’t need collusion.

We will remind, the similar situation was in Ukraine. Last year, the Antimonopoly Committee considered that the rising prices of chicken meat may be associated with collusion, a major poultry companies. But as in the case of the US, to protect domestic poultry were made by the relevant Association and independent experts, indicating that the increase in prices is caused by objective factors: growth of prices for fuel, feed, utilities, etc. Version of experts is confirmed by data of the state statistics in 2017 the costs of agricultural production in Ukraine grew by 22% on average.

Leave a comment

Confirm that you are not a bot - select a man with raised hand: