Target, Campbell’s drop claims against Mar-Jac in broiler antitrust case

On June 10, both Target Corp. and The Campbell’s Co. dropped their claims against poultry processor Mar-Jac Inc. in a broiler price-fixing antitrust lawsuit that dates back roughly a decade ago.

Three classes of chicken buyers claimed in the lawsuit that several poultry processors — including Mar-Jac — conspired through the aid of confidential, competitive information from Agri Stats and other means to fix the price of chicken higher than the market would naturally support.

The complaint alleges that between 2008 and 2016, the companies manipulated the market by implementing production cuts to artificially raise broiler prices.

Prior to 2008, there was a historic pattern of production increases, according to court documents. The plaintiffs alleged that in 2007, defendants Tyson Foods, Pilgrim’s Pride, Foster Farms, Peco Foods and Perdue cut back their broiler production, but found that the change did not result in “meaningful” price increases, leading to a conspiracy to cut production across the entire industry.

The court documents add that Tyson and Pilgrim’s control the largest percentage of the market — 22% and 17%, respectively — while the other defendants maintain market shares no greater than 8-9%, with several below 5%.

Target and Campbell’s agreement made with Mar-Jac has “no bearing on plaintiffs’ other claims against any defendant other than Mar-Jac,” the court documents noted.

Each side will bear their own attorney’s fees and costs.

The companies did not respond to a request for comment by the time of publication.