Categories: Politics

Poultry collusion update: Georgia Department of Ag requests affidavits

Schronce memo saga continues. Last week we brought you the latest in the ballooning story about alleged collusion among some of the nation’s largest poultry producers to drive chicken prices up since at least 2008.

“”We’ve used it for 40 years and everybody’s always had a lot of confidence in it.”

The Georgia Dock price index, which U.S. producers use to set prices for wholesalers and retailers, has come under increased scrutiny after Bloomberg and the Washington Post obtained an internal memo written by the report’s director, Arty Schronce, that cited limited resources and dismissive behavior on the part of producers as reasons the report should be handed over to an independent auditor or eliminated entirely.

The development follows a series of antitrust class actions filed since September, the first of which was led by New York food distributor, Maplevale Farms, on behalf of middlemen who buy from producers like Tyson Foods, Inc., Pilgrim’s Pride Corp., and Sanderson Farms.

Related Post

Now some of the same producers named in the class action are being asked by the Georgia Department of Agriculture to provide affidavits confirming that the price information they provide to the Georgia Dock is accurate. AgWeb reports that the affidavits are due on Tuesday and both Tyson and Sanderson are said to be “considering” signing them.

There is some disagreement among producers about how much they rely on the Georgia Dock for price discovery in the first place. Tyson spokesman Worth Sparkman told Bloomberg the company only uses the index to price “3 to 4 percent of Tyson’s chicken sales,” while Sanderson CFO Mike Cockrell is quoted said in the same Bloomberg story as saying, “We’ve used it for 40 years and everybody’s always had a lot of confidence in it.”

The U.S. Department of Agriculture had been using the Georgia Dock in its own poultry price reporting until earlier this month, when it stopped publishing the estimates because, as an agency spokesperson told the Washington Post, “data from the source report could not be independently verified.” Stay tuned for more poultry collusion confusion.

Kate Cox
Share
Published by
Kate Cox

Recent Posts

Grist acquires The Counter and launches food and agriculture vertical

Grist, an award-winning, nonprofit media organization dedicated to highlighting climate solutions and uncovering environmental injustices,…

6 months ago

Is California giving its methane digesters too much credit?

Every year, California dairy farms emit hundreds of thousands of tons of the potent greenhouse…

3 years ago

Your car is killing coho salmon

Highway 7 runs north-south through western Washington, carving its way through a landscape sparsely dotted…

3 years ago

The pandemic has transformed America’s dining landscape into an oligopoly dominated by chains 

One of the greatest pleasures I had as a child growing up in the Chicago…

3 years ago

California is moving toward food assistance for all populations—including undocumented immigrants

Undocumented immigrants experience food insecurity at much higher rates than other populations, yet they are…

3 years ago

Babka, borscht … and pumpkin spice? Two writers talk about Jewish identity through contemporary cookbooks.

Writer Charlotte Druckman and editor Rebecca Flint Marx are both Jewish journalists living in New…

3 years ago