The motivations for this case study are recent developments in the U.S. broiler chicken industry involving allegations of an illegal exercise of buyer market power by the five largest broiler processors in the country in the market for broiler grow-out services. This case study introduces economic, business, and legal issues related to the alleged input price-fixing cartel of the five largest broiler processors. The case study describes the processors’ conduct and presents a theoretical framework that may explain market and price effects of the alleged input price-fixing cartel. The teaching note provides suggested answers to discussion and analytical questions, and it also includes multiple-choice questions that can be used as in-class assignments, quizzes, and exam questions. This case study is suitable for a variety of undergraduate and graduate courses taught in agricultural economics and agribusiness programs and for Extension and outreach audiences.

Besanko, D., and R. Braeutigam. 2002. Microeconomics: An Integrated Approach. Hoboken NJ: John Wiley & Sons.

Besanko, D., D. Dranove, M. Shanley, and S. Schaefer. 2006. Economics of Strategy, 4th ed. Hoboken NJ: John Wiley & Sons.

Bloom, M. 2014. Information Exchange: Be Reasonable. Washington DC: Federal Trade Commission, Bureau of Competition. https://www.ftc.gov/news-events/blogs/competition-matters/2014/12/information-exchange-be-reasonable.

Bolotova, Y.V. 2022a. “Price-Fixing in the U.S. Broiler Chicken and Pork Industries” (Case Study). Applied Economics Teaching Resources 4(4):55–91.

Bolotova, Y.V. 2022b. “Teaching Forward Contracts in Undergraduate Courses in Agribusiness and Agricultural Economics Programs.” Applied Economics Teaching Resources 4(4):22–33. 

Chasan, E., and B. Burgdorfer. 2009. “Pilgrim’s Pride Exits Bankruptcy Under JBS Deal.” Reuters, December. https://www.reuters.com/article/us-pilgrimspride/pilgrims-pride-exits-bankruptcy-under-jbs-deal-idUSTRE5BR2O820091228.

Congressional Research Service. 2009. Livestock Marketing and Competition Issues. Report RL33325, Washington DC.

Dimitri, C., E.C. Jaenicke, and A.B. Effland. 2009. “Why Did Contracts Supplant the Cash Market in the Broiler Industry? An Economic Analysis Featuring Technological Innovation and Institutional Response.” Journal of Agricultural and Food Industrial Organization 7: Issue 1, Article 9.

Federal Register. 2022. A Proposed Rule by the U.S. Department of Agriculture Agricultural Marketing Service: Poultry Growing Tournament Systems: Fairness and Related Concerns (Vol 87, No 110, June 8). https://www.federalregister.gov/documents/2022/06/08/2022-11998/poultry-growing-tournament-systems-fairness-and-related-concerns.

Federal Trade Commission. 2024a. The Antitrust Laws. Washington DC. https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/antitrust-laws.

Federal Trade Commission. 2024b. Price Fixing. Washington DC. https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/dealings-competitors/price-fixing.

Goeringer, P. 2022. “Broiler Grower Settlement Forms Arriving to Mid-Atlantic Growers: Background on the Class Action.” University of Maryland Extension, Commercial Poultry News, October. https://extension.umd.edu/resource/broiler-grower-settlement-forms-arriving-mid-atlantic-growers-background- class-action.

Hovenkamp, H. 2005. Federal Antitrust Policy: The Law of Competition and Its Practice, 3rd ed. St. Paul MN: Thomson West.

Knoeber, C.R. 1989. “A Real Game of Chicken: Contracts, Tournaments, and the Production of Broilers.” Journal of Law, Economics, and Organization 1989:271–292.

Knoeber, C.R., and W.N. Thurman. 1995. “‘Don’t Count Your Chickens...”: Risk and Risk Shifting in the Broiler Industry.” American Journal of Agricultural Economics 77:486–496.

MacDonald, J.M. 2008. The Economic Organization of U.S. Broiler Production. Washington DC: U.S. Department of Agriculture, Economic Research Service, Economic Information Bulletin Number 38.

MacDonald, J.M. 2014. Technology, Organization, and Financial Performance in U.S. Broiler Production. Washington DC: U.S. Department of Agriculture, Economic Research Service, Economic Information Bulletin Number 126.

National Chicken Council. 2024. “Vertical Integration.” https://www.nationalchickencouncil.org/industry-issues/vertical-integration/.

National Chicken Council Chicken Check In. 2024a. “Contract Chicken Growers: What Is a Contract Grower? How and Why Do Farmers and Chicken Companies Partner to Raise Chickens?” https://www.chickencheck.in/faq/chicken-contract-growers/.

National Chicken Council Chicken Check In. 2024b. “The Tournament System: What Is the Tournament System? How Are Chicken Farmers Paid?” https://www.chickencheck.in/faq/tournament-system/.

Norwood, F.B., and J.L. Lusk. 2008. Agricultural Marketing and Price Analysis. Upper Saddle River NJ: Pearson Prentice Hall.

O’Keefe, T. 2021. “U.S. Broiler Industry Less Concentrated Than 15 Years Ago.” WATTPoultry.com, September 8. https://www.wattagnet.com/blogs/14-food-safety-and-processing-perspective/post/43457-us-broiler-industry-not-as-concentrated-as-15-years-ago.

Pilgrim’s Pride Broiler Production Agreement. 2005.

https://www.sec.gov/Archives/edgar/data/802481/000080248105000093/ex99_1broileragreement.htm.

Shaffer, E. 2017. “Poultry Processors Face Lawsuit Over Grower Pay.” MEAT+POULTRY, February. https://www.meatpoultry.com/articles/15785-poultry-processors-face-lawsuit-over-grower-pay.

Spector, M., L. Etter, and A. Stewart. 2009. “Brazilian Giant JBS Agrees to Buy Pilgrim’s Pride.” The Wall Street Journal, September. https://www.wsj.com/articles/SB125310503697015705.

Stigler, G.J. 1964. “A Theory of Oligopoly.” The Journal of Political Economy 72:44–61.

U.S. International Trade Commission. 2014. Poultry: Industry & Trade Summary. Washington DC: U.S. International Trade Commission, Office of Industries Publication ITS-010.

WATT PoultryUSA. 2021. https://www.wattpoultryusa-digital.com/wattpoultryusa/march_2021/MobilePagedArticle.action?articleId=1668231#articleId1668231.

Court Documents

In re Broiler Chicken Grower Antitrust Litigation No. II. 2025. Case No. 6:20-MD-02977-RJS-CMR. https://www.broilergrowersantitrustsettlement.com/.

Haff Poultry, Inc. et al. v. Tyson Foods, Inc. et al. 2017. CASE NO. 6:17-CV-00033-RJS. Consolidated class action complaint dated 07/10/2017. https://www.hausfeld.com/uploads/documents/0137_consolidated_amended_complaint.pdf.

Haff Poultry, Inc. et al. v. Tyson Foods, Inc. et al. 2021. Case No. 6:20-MD-02977-RJS-CMR.
Consolidated class action complaint dated 02/19/2021.
https://www.broilergrowersantitrustsettlement.com/important-documents.php