Pilgrim’s Pride Execs, Koch Foods Charged With Chicken Price-Fixing

The Department of Justice (DOJ) on Thursday, July 29, announced charges against Koch Foods and four Pilgrim’s Pride executives over their roles in a nationwide conspiracy to fix prices for broiler chickens.

The indictments allege that chicken producer Pilgrim’s Pride executives Jason McGuire, Timothy Stiller, Wesley “Scott” Tucker, and Justin Gay conspired to suppress competition for sales of broiler chickens, or chickens that are raised specifically for meat production and sold to grocers and restaurants, and were charged with violating the Sherman Act, according to the DOJ.

“As today’s charges show, the division remains committed to holding both individuals and companies accountable when they choose profits over following the law,” acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division said in a Thursday statement.

He added that the division’s “investigation into criminal price fixing of broiler chickens continues” and will not stop until the DOJ can “ensure that wrongdoers are held accountable and competition is restored to this critical industry.”

Koch Foods senior vice president William Kantola was one of 10 individuals charged in October of 2020 for their roles in the same conspiracy, which began in 2012 and lasted until 2019, the DOJ reported.

Pilgrim’s Pride, which is based in Colorado, pleaded guilty to the conspiracy in February of 2021, and a court ordered the company to pay a fine of US$107 million.

According to the company’s plea agreement, from as early as 2012 and continuing at least into 2017, Pilgrim’s role in the conspiracy affected at least US$361 million in Pilgrim’s sales of broiler chicken products.

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