David Williams’ Post

McDonald's accuses beef suppliers of price fixing. McDonald's has filed a lawsuit against beef suppliers including Cargill, JBS, National Beef Packing Company, and Tyson Foods, accusing them of conspiring to drive up the price of beef. The lawsuit alleges that the suppliers engaged in a conspiracy that began in 2015, resulting in artificially inflated beef prices. This legal action is part of a broader trend of purchasers taking legal actions against meat suppliers, following investigations by the U.S. Department of Justice into potential price-fixing activities within the industry. The lawsuit claims that the beef suppliers, which collectively account for over 80% of the U.S. beef supply, exploited their position in the market to increase their profit margins. McDonald's alleges that the suppliers coordinated on prices for cattle and slaughter volumes, leading to higher prices. The company also contends that the suppliers' actions disrupted the normal functioning of the cattle and beef market, resulting in inflated beef prices. McDonald's presented data indicating that after the alleged conspiracy began, the suppliers reduced the number of cattle slaughtered, while independent packers increased their slaughter volume. The company also noted that the price of cattle and beef no longer moved in tandem after 2015, and the spread between the price of cattle and wholesale beef increased significantly. In essence, the lawsuit accuses the suppliers of cutting cattle prices while maintaining inflated beef prices, leading to artificially high prices for beef. #McDonaldsLawsuit #PriceFixing #BeefSuppliers #ConspiracyAllegations #LegalAction #USDepartmentOfJustice #MeatIndustry #CattlePrices #PriceInflation #MarketManipulation

The literal drop off the cliff of cow slaughter suggests one of two things, if not a combination of both. That being, either we have run out of cows, or the imports of lean beef have decreased the need for such a heavy cow slaughter.  Regardless of which, the cow slaughter has dropped dramatically. Beef production remains elevated and I have seen little that suggests the consumer is going to increase consumption or be more willing to pay a higher price. #Cattle #Beef #LiveCattle #FeederCattle

In the last four weeks hog slaughter is down 2.3% lower than a year ago, and that’s after a 2.7M week last week. Spot supply has been tight following holiday and winter weather disruptions and it will take some time for it to recover. Price performance varies greatly by product. However, the main reason for the jump in the cutout is the higher price paid for bellies as processing plants find very limited availability. Cold storage inventory of pork at the end of December was 6.4% lower than a year ago and 9.3% lower than the five year average. Prop 12 speculation persists. The short slaughter weeks may have helped keep fresh pork supply in check but market will be tested in Feb/Mar as supply normalizes and demand traditionally is soft. Learn more at: https://lnkd.in/eMsEM5jh

The antitrust lawsuit against Tyson Foods and other beef producers continues to unfold, with McDonald’s now in the spotlight as a key company affected by these alleged practices. The lawsuit claims that beef producers, including Tyson, coordinated to manipulate beef prices, directly impacting major buyers like McDonald’s and, ultimately, consumers. 💡 The Ripple Effect: McDonald’s, as one of the world’s largest purchasers of beef, relies on competitive and fair market pricing to manage costs and provide affordable products to its customers. Allegations of price-fixing by its suppliers could have profound financial and reputational implications for both the fast-food giant and the broader food industry. This case exemplifies the intersection between large corporations’ procurement strategies and the responsibility of suppliers to maintain fair practices. The outcome could reshape supplier-buyer relationships and set precedents for how pricing agreements are monitored. 🔍 What to Watch: As this case progresses, the legal arguments presented will be crucial in determining liability and the extent of the alleged conspiracy. Additionally, the implications for McDonald’s and other large-scale beef buyers could redefine how such companies manage supply chain risks.

After a year and a half of less-than-desirable conditions, the hog industry is trending upward. We've been there for our pork producers through the hard times, and we are excited to be here for them through the better times ahead. Check out this Farm Journal's PORK article to learn more about where the industry is headed. https://bit.ly/4a52Nig

Breaking Beef News Alert! Our latest article takes a close look at the momentum behind rising slaughter cow prices. We highlight the latest information from exploding ground beef prices to the key aspects of the utility tenderloin situation. Find out how these trends could affect your business. #DovenFoods #BeefMarketInsights #GroundBeefTrends #TenderloinTrends #MarketAnalysis https://wix.to/2bLJtzN

    Prop 12 is Raising The Price of Pork in California   In effect for just over six months, pork sales have dropped across the state. That’s from data compiled by the USDA’s Office of the Chief Economist. The OCE found prices for pork products affected by Prop 12, including loins, ribs, and bellies, have averaged 20% higher in California since before July 1, 2023, when the initiative was partially implemented. Loin prices average 41% higher than before Prop 12 implementation. Pork not covered by the initiative hasn’t significantly increased. The data also shows that California’s share of fresh pork consumption has “significantly declined.” The economists found the price premium end-users paid for Prop 12-compliant pork compared with non-compliant products at the wholesale level was 22% higher on average, with compliant loins and bellies 30% higher. Prop 12-compliant pork must meet specific animal housing space standards to be legal. #pork #porkprices

High Beef Prices Have Pushed McDonald’s To Sue The Country’s Largest Meatpackers On today’s menu, McDonald’s ($MCD) is having legal beef with its suppliers (literally). The fast-food giant has joined a slew of firms in suing the nation’s top four meatpackers — Cargill, JBS, Tyson, and National Beef Packing. They’re accused of conspiring to inflate beef prices, which have nearly tripled since 2010, far outpacing inflation. This dramatic rise has hit McDonald’s particularly hard, as ground beef is crucial for their menu. Only recently has the chain pieced together evidence pointing to a possible price-fixing scheme orchestrated by these meatpacking giants. The lawsuits claim the meatpackers, who control over 80% of the US beef market, colluded to depress cattle prices while inflating beef costs — potentially costing buyers billions. An insider from JBS-owned Swift Beef Company has corroborated the allegations, confirming that the firms worked together to fix prices at both ends of the business. McDonald’s is cooked: The timing couldn’t be more challenging for McDonald’s, as it grapples with an E. coli outbreak linked to its Quarter Pounders — which has reported 75 linked illnesses as of Friday. The company’s stock is still down 5% from the hit it took last week following the news, adding another layer of complexity to its beef-related woes. The company has also been struggling with declining sales — a sign that it might be losing appeal to both budget-conscious and higher-income diners. https://lnkd.in/gMBPBn7b

McDonald's’s has filed a lawsuit against several major beef suppliers, including industry giants Tyson Foods, JBS, and Cargill, accusing them of conspiring to fix beef prices at artificially high levels... #antitrust #antitrustlaw #competitionlaw #pricefixing #meatindustry #burgers #beef #food

What Industry Sector Represents the Majority of the Cattlemen’s Beef Board? A. Stocker/Feeder B. Cow/Calf C. Dairy/Veal D. Importer Comment your answer below! Tomorrow we'll comment the correct answer. #BeefCheckoff