Chief Judge Tunheim recently dismissed, with leave to amend, the class complaints in In Re Pork Antitrust Litigation.  The Pork case— filed in the District of Minnesota against Tyson, Hormel, JBS and other major pork producers—alleged a conspiracy beginning in 2009 to inflate artificially the price of pork sold in the United States. 

Eager to curb foodborne-illness outbreaks, retail giants like Walmart and Albertsons are turning to blockchain technology [1] to track exactly where their foods are coming from. Blockchain, as compared to the eye-straining, paper-heavy tracking systems before it, allows retailers to trace the supply-chain history for a single food item within seconds.

For example, in a test case using IBM’s blockchain technology, Walmart traced the supply chain for two off-the-shelf mangoes randomly taken from one of its stores. Using conventional source-checking methods, it took them 7 days to do so. Through blockchain, however, they were able to track the entire supply chain in 2.2 seconds!  As a former Walmart executive put it, blockchain “allows us to see the whole chain in seconds! We [could] take a jar of baby food and see where it was manufactured and trace back all the ingredients to the farms!” Before blockchain, that simply would not have been feasible.


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beefWhen it rains, it pours—and for the country’s largest protein producers, the downpour is coming in the form of high-profile antitrust lawsuits. Over the past few years, food giants like Tyson and JBS (majority owner of Pilgrim’s Pride) have been named as a defendant in price-fixing cases relating to chicken and pork. Now, Tyson, JBS and Cargill face claims asserted by both consumers and suppliers of beef. According to these new claims, the beef producers conspired to increase their profits by both decreasing the supply-side prices they paid and increasing the prices their customers paid.
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Price FixingScott Wagner and Lori Lustrin discuss with Law360 the new wave of antitrust cases emerging in the food and beverage industry.

Price-fixing cases over the past decade have read like a virtual electronics product materials list. Government investigators and civil plaintiffs have pursued actions involving a wide array of electronic parts ranging from passive components

Price FixingWhen people think about this year’s food industry trends, they may envision app-based grocery delivery services, the Keto diet, and restaurants that serve all locally-sourced ingredients.

But inside federal courthouses across the country, the Department of Justice and civil plaintiffs have been highlighting a darker trend within the food business: price fixing.

Under United States antitrust law, price fixing is defined as an agreement among competitors that raises, lowers, or stabilizes prices or competitive terms. The U.S. antitrust laws require that each company establish prices on its own without agreeing with a competitor on a price to charge consumers. The driving force behind our antitrust laws is simple: when competitors agree to restrict competition and inhibit a free market, it results in higher prices. And an agreement to restrict production, sales, or output of a product or service is just as illegal as direct price fixing because reducing the supply of a product or service drives up its price.
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