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Class-action lawsuit filed in Quebec against meat-packing companies for price fixing

Cuts of beef are seen at a supermarket Wednesday, June 26, 2019 in Montreal. Ryan Remiorz/The Canadian Press

A class-action lawsuit has been filed against the largest beef suppliers in Canada for allegedly conspiring to restrict competition and raise prices on beef sold in Quebec.

The lawsuit was filed by the Belleau Lapointe law firm on March 24 in Quebec Superior Court.

It alleges that various companies related to Cargill Inc., JBS Canada ULC, Tyson Food Inc. and National Beef Packing Co LLC acted in concert to “unduly restrict competition related to the production, supply or sale of beef” in the province since Jan. 1, 2015.

Read more: High cost of hay in Alberta could drive up beef prices, put livestock producers out of business

The lawsuit, which still has to be certified by a judge, is seeking financial compensation equivalent to revenues generated by the artificially inflated portion of selling prices.

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The plaintiffs say the meat-packing plants control 85 per cent of the Canadian beef market and 80 per cent of the U.S. market.

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The legal filing comes nearly two years after the attorneys general for 11 Midwestern states urged the U.S. Justice Department to pursue a federal investigation into market concentration and potential price fixing by meatpackers in the cattle industry during the coronavirus pandemic.

Read more: Meat counter prices rising to ‘spook zone’ levels: food expert

“The claims lack merit,” Cargill spokeswoman April Nelson wrote in an email.

“We compete vigorously in the market and conduct ethical business, and we are confident in our efforts to maintain market integrity on behalf of our customers and consumers.”

The other companies couldn’t be immediately reached for comment.

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