NOBULL: Mexican Regulators Take on Tyson et al.
Hello All,
While U.S. regulators cower at the thought of enforcing U.S. antitrust laws and the Packers and Stockyards Act against the monopolistic practices of JBS, Tyson, Cargill and National Beef, foreign regulators are busy protecting their producers and consumers from such unlawful actions.
Bill Bullard
R-CALF USA
Meatingplace
Industry News – PM
Tyson, Bachoco receive $10 million fine for monopolistic practices
By Andre Sulluchuco on 11/22/2013
Mexico-based poultry companies Industrias Bachoco, Pilgrim’s, Tyson Mexico, Pollo de Querétaro and San Antonio, as well as the National Union of Mexican Poultry Farmers (UNA), recently received fines totaling 130.4 million pesos ($10 million) for monopolistic practices, reports Mexican newpaper Agencia Reforma.
The Federal Competition Commission of Mexico (CFC) decided, after four years of research, that these companies incurred in said practices in 2008 and 2009. Six company executives were also fined for an amount not yet revealed.
“The companies’ conduct prevented competition among them and forced [Mexican] consumers to pay higher prices for chicken products," said the CFC.
The companies claimed that they were not seeking to limit competition, but rather to “get rid of inventory items.” They added that the prices they set were actually lower than market price.
The CFC said that fixing product prices damages ultimately affects consumer choices and estimated the market loss at 604 million pesos ($46.5 million).