Florida Prosecutors Looking Into Chicken Producer Price Fixing

Florida's attorney general is reportedly investigating allegations that the country's top chicken companies colluded to fix prices in recent years.

Tyson and Pilgrim's Pride this week acknowledged that Attorney General Pam Bondi's office sought information regarding claims made in federal lawsuits filed last year. Reuters reported that Florida prosecutors also contacted Sanderson Farms with similar concerns.

The lawsuits alleged that companies comprising the vast majority of the U.S. chicken market in 2008 began sending internal data to an outside firm — then utilized that information to raise fewer chickens, stabilize prices and maintain profits.

An analyst warned last year that the allegations were "powerfully convincing" and would "explain a lot" of the behavior of the chicken market in recent years. Tyson, the U.S. market leader, previously disclosed a subpoena from the Securities and Exchange Commission likely relating to the allegations.

Tyson officials told Reuters that Bondi's office largely sought information related to the Georgia Dock, a chicken pricing index published by Georgia's agriculture department until it was shut down amid concerns that companies could manipulate it.

The company said that the claims were without merit but that it was cooperating with Florida officials.

"It’s not uncommon to see state AGs investigate antitrust allegations made in civil cases that seek to collect damages on behalf of consumers within their states," Tyson spokesman Gary Mickelson told the publication.