Tom Polansek

CHICAGO, (Reuters) – U.S. On Monday, Senator Elizabeth Warren called for the Justice Department’s broad investigation into the effects of consolidation and price fixing in the poultry sector on farmers and consumers.

Former Democratic presidential candidate encouraged the Antitrust Division of the Department to examine “with suspicion”, any major mergers within the industry. This was after Continental Grain and Cargill Inc announced in August that they were buying a chicken company. Sanderson Farms For $4.53 Billion (NASDAQ:),

Warren wrote in a letter that prices are rising due to excessive consolidation, price fixing and plain-old corporate greed.

According to U.S. Labor Department data for the year ended December 31, prices of chicken breasts rose 26% while those of turkey have increased 24% according to an American Farm Bureau Federation annual survey.

According to the meat industry, increased demand and a shortage of labor have led to higher prices. According to the Biden administration, 54% of the market for chicken is now controlled by four processors, up 35% from 1986.

Warren explained that “lack of competition is allowing these enormous companies to squeeze both American farmers and consumers to fuel record corporate profits, and payouts for shareholders.”

Price fixing among chicken farmers is under investigation by the Justice Department. To rein in the prices, Biden’s administration also promises a stronger stance against four U.S. beef companies.

Pilgrim’s Pride Corporation (NASDAQ:) Corp pled guilty in February to federal charges it had conspired with the government to set prices and then pass those costs on to its customers.

It was a month ago Tyson Foods Inc (NYSE 🙂 has settled civil litigation with three groups of plaintiffs, who had accused Inc of illegally conspiring in order to increase chicken prices.

Warren asked for a report from the Justice Department by December 20 regarding how price fixing and consolidation contributed to higher prices of poultry.

Republican U.S. Chuck Grassley raised concerns previously about Sanderson Farms being taken over by the Republican U.S.