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McDonald’s Sues Meatpackers for Collusion

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The historic McDonald's sign at the corner of County Line Road and Emerson Avenue in Greenwood, Indiana. Photo: C.J. Miller / Hoosier Ag Today.

McDonald’s has filed a lawsuit against Tyson Foods, JBS, and other major meat packing companies. The fast food chain is accusing the packers of colluding for years to limit beef supplies.

The suit says that the collusion allowed the companies to boost their profits while forcing McDonald’s to pay inflated prices for their meat supplies. McDonald’s says the companies conspired to reduce production levels beginning on January 1, 2024, which would artificially drive up market prices. The companies have significant control over the cattle and beef industry, so they could manipulate prices “at their will.”

In the suit, McDonald’s says, “Only colluding meatpackers would expect to benefit by reducing their prices and purchases of slaughtered cattle, fully aware that their conspiracy would shield them from the pressures of a competitive market.”

In 2018, the “Big Four” beef companies controlled 80 percent of fresh and frozen beef sold in the U.S.