March 24 Reuters Tyson Foods Inc gave its chicken suppliers two months39; notice of its plan to shut a Virginia processing plant in May, raising concerns among farmers and legal experts about the company39;s compliance with antitrust regulations requiring it to give 90 days39; notice before ending a contract.
The planned closure of the plant has left dozens of Virginia chicken growers scrambling to find new buyers in a region with few other options. It could also expose Tyson to fines under the centuryold Packers and Stockyards Act PSA, the U.S. antitrust law requiring the minimum advance warning, according to Peter Carstensen, a professor of law emeritus at the University of WisconsinMadison Law School who previously served in the antitrust division at the U.S. Department of Justice.
Tyson told Reuters the company is not canceling any farmers39; contracts and instead has committed to paying the growers for the fullterm of their remaining contracts, keeping in compliance with federal regulations.
Antitrust issues, particularly in meatpacking, have been a priority for the U.S. Department of Agriculture USDA under President Joe Biden, who in 2021 directed federal agencies to tackle consolidation. Four companies, including Tyson, control 55 to 85 of the beef, pork, and chicken markets.
Tyson alerted Virginia farmers by phone on March 13 and later by mail that it will shut its Glen Allen plant on May 12, according to three poultry farmers who supply the plant. About 72…