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Sanderson Farms $4.5-billion sale finalized amid DOJ antitrust probe of poultry industry 

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Sanderson Farms $4.5-billion sale finalized amid DOJ antitrust probe of poultry industry 

Days after Mississippi’s largest company – Laurel-based poultry processor Sanderson Farms – finalized its $4.5- sale to an out-of- competitor, it agreed to pay its part of millions of dollars in restitution to workers for its alleged role in a scheme to suppress wages. 

The U.S. Department of Justice filed a lawsuit this week that outlined decades of communications and data sharing between the poultry industry’s largest players, Sanderson and its new owner, accusing the companies of working together to keep wages and from being competitive. 

“Through a brazen scheme to exchange wage and benefit information, these poultry processors stifled competition and harmed a generation of plant workers who face demanding and sometimes dangerous conditions to earn a living,” Principal Deputy Assistant Doha Mekki of the Justice Department’s Antitrust Division said in a statement. 

Cargill Inc., Sanderson Farms Inc., and Farms signed an agreement with the Justice Department to pay $84.8 million in restitution to workers to resolve the lawsuit. 

Cargill and Continental Grain Co. closed the acquisition of Sanderson Farms on Friday, almost a full year after announcing its plans. Continental owns Wayne Farms. The new corporate entity combines Sanderson – the third largest chicken production company in the country – with Wayne – the sixth largest – to create Wayne-Sanderson Farms. 

“While we are pleased to have resolved this matter and put it behind us, both legacy companies are proud of their track record with their employees and growers and the agreement with DOJ evidences our commitment to continue to be an industry leader in those ,” Wayne-Sanderson Farms said in a statement. 

Cargill said in a statement it denies any wrongdoing but has been cooperative. The antitrust probe slowed the company’s plans to purchase Sanderson, which was first announced in August 2021. 

The settlement, which still has to be approved by the court, also calls for a compliance monitor who will ensure the poultry companies are following regulations related to both processing facilities and with chicken growers. 

The lawsuit says Sanderson and Wayne were both in violation of a protection act for the farms that hatch and grow chickens for slaughter. The poultry processors used a “tournament system” that adjusted payouts based on the quality of their brood to others, according to the lawsuit. The processors, however, are the ones supplying the chicks and feed. 

DOJ alleged the poultry companies failed to provide the information the chicken growers needed to understand the inherent financial risks. Propublica outlined those types of risks in a 2019 investigation that showed how another poultry processor – Koch Foods – took advantage of Black Mississippi farmers to grow chickens, leaving them saddled with debt.

The agreement prevents Sanderson-Wayne from penalizing chicken growers by reducing base pay while still allowing for incentives and other bonuses. It requires expanded disclosures and transparency in contracts and prohibits retaliation against growers who raise antitrust concerns. 

The new Sanderson-Wayne Farm is based in Oakwood, Georgia, with Clint Rivers, the of Wayne Farms, as its head. The future of Sanderson’s corporate offices in Laurel is unclear.

“As we proceed with the integration of Wayne-Sanderson Farms, we look forward to investing in our communities, employees and grower partners to ensure there continues to be a strong and competitive American food supply,” the new company said in a statement. 

Under its new ownership, Sanderson is no longer publicly traded. D.R. Sanderson founded the business in 1947 as a feed and seed store. For 75 years, it was family owned and based out of Laurel. Today, it spans more than 17,000 employees.

“It has been an incredible privilege to lead the Sanderson Farms team over the last 33 years and to continue my family’s legacy by helping to nourish families across the country,” former CEO Joe F. Sanderson, Jr. said in a statement. “I am proud of all we have achieved together, and I am confident that the fairness, honesty and integrity that has been synonymous with the Sanderson Farms name will carry on with Wayne-Sanderson Farms.” 

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Mississippi News

Dollar General vehicle theft leads to two arrests in Tupelo

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www.wcbi.com – Aundrea Self – 2024-11-04 16:10:00

SUMMARY: In , Mississippi, 19-year-old Joshua James and a juvenile face charges related to a pursuit and the of a police car. James is charged with Directing a Felony to Be Committed by a Person Under Seventeen, Grand Larceny, and Felony Fleeing, with a bond set at $100,000. The incident began on November 1 when police responded to a of a stolen vehicle. After a chase that ended when the stolen truck crashed south of Verona, James was apprehended, while his juvenile passenger fled in a police car, which was later found wrecked. The juvenile’s case will be handled in Youth Court.

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Categories: Crime, Local News


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Mississippi News

Lowndes Co. Supervisors talk storm safety for certain areas

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www.wcbi.com – Marcus Hunter – 2024-11-04 15:59:00

SUMMARY: The Lowndes County Board of Supervisors has secured to construct storm shelters in Crawford, Artesia, and Plum Grove, lacking local shelter during severe weather. Each community will four FEMA-funded shelters, accommodating up to 20 people each, on property at a total cost of $103,692, with FEMA contributing $93,000. The supervisors anticipate these shelters will significantly enhance safety for during storms. Vice President Jeff Smith highlighted their importance, expressing relief for community members who have long awaited a secure refuge. While installation timelines remain unclear, the is expected to proceed soon.

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News anchor dropped after social media post telling Trump-haters supporting Harris: ‘Stay home, don’t vote’

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www.foxnews.com – – 2024-11-04 11:51:00

SUMMARY: David “Dave” Elliott, a anchor for in for nearly 40 years, was fired after expressing political views on social . He revealed on Facebook that his termination was due to his political opinions, specifically mentioning a where he advised people not to vote out of hatred for Donald Trump. Elliott characterized his social media posts as satire, distinguishing them from his professional work. He noted that the discussion with his station’s general about his dismissal was brief, and the topic of social media was raised. WLOX’s management declined to comment on the matter.

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