WASHINGTON – In a recent regulatory filing, Pilgrim’s Pride Corp. disclosed that the Department of Justice (DOJ) opened a civil investigation into the company’s grower contracts and payments.

The poultry processor said in the filing that it learned about the investigation on Oct. 6 and that it will continue to cooperate with the DOJ. 

The latest inquiry comes as Pilgrim’s also was the subject of an investigation into human resources antitrust matters after it learned about it on Feb. 9.

During September 2022, Lina Khan, chair of the Federal Trade Commission, provided comments supporting a proposed rule in May by the USDA to offer poultry growers more fairness in the current tournament-style systems.

New initiatives by the USDA included a proposed rule under the Packers and Stockyards Act that would require poultry companies and live poultry dealers to provide information contract producers need to make production contract decisions. 

In August, the National Chicken Council called on the USDA to withdrawal its proposed Transparency in Poultry Grower Contracting and Tournaments rule.

“NCC is deeply concerned that the proposed rule would have a devastating financial impact on the US chicken industry by raising costs and administrative burdens, contributing to increased food prices for consumers, and ultimately destabilizing a successful compensation system,” the association wrote in its comment over the summer.