US News

149 readers

1 users here now

US news only.

founded 8 months ago

MODERATORS

[email protected]

McDonald's sues top meat packers for allegedly colluding to inflate the price of beef (apnews.com)

submitted 1 month ago by [email protected] to c/[email protected]

3 comments fedilink hide all child comments

cross-posted from: https://lemmy.world/post/20647818

McDonald’s has some beef with today’s largest meat packers.

The fast food giant is suing the U.S. meat industry’s “Big Four” — Tyson, JBS, Cargill and National Beef Packing Company — and their subsidiaries, alleging a price fixing scheme for beef specifically. In a federal complaint, filed Friday in New York, McDonald’s accused the companies of anticompetitive measures such as collectively limiting supply to boost prices and charge “illegally inflated” amounts.

This collusion caused the beef market to become “a monopoly in which direct purchasers were forced to buy at prices dictated by (the meat packers),” McDonald’s suit reads — later noting that the injury it has sustained as one of those buyers is what “antitrust laws were designed to prevent.”

McDonald’s alleges that the meat packers’ conspiracy dates back nearly a decade, at least as early as January 2015, and continues today. Its suit argues these companies’ actions violate the Sherman Act, a federal antitrust law.

top 3 comments

sorted by: hot top controversial new old

[–] [email protected] 1 points 1 month ago

They should increase the price to McDonald's. But they arent doing it for any good reason, passing it in to ranchers who have seen increasingly hard times, reducing the total amount of meat eaten, improving quality, reducing waste etc etc. Instead they just pass it on to executives and stock buybacks for the stock price.

[–] [email protected] 0 points 1 month ago

I’d be more worried about the top fudge packers

[–] [email protected] -1 points 1 month ago* (last edited 1 month ago)

Beef is expensive because of the drought. Remember climate change?

When there is a drought, there is less water for cows, and grass feed. When there is less food and water for cows, they can't survive. Which leads to number 2.
When cows don't thrive, their numbers drop. That means less beef that can be sold in volume. Which leads to number 3.
When there is less beef to make profits from, then prices must increase to maintain the survivability of ranchers and the beef industry, as well as demand putting pressures on a smaller supply.

Causation: noun — the action of causing something.

This lawsuit reminds me of the ignorant customer who feels the beef industry is scrounging them. McDonald's needs to pay their workers 50 dollars an hour.

US port strike disrupts hamburger supplies, frozen seafood | Reuters https://www.reuters.com/world/us/us-port-strike-disrupts-hamburger-supplies-frozen-seafood-2024-10-02/