Wayne-Sanderson Farms has filed a motion requesting court clarification on the legality of its use of the Agri Stats subscription service. This comes in response to the U.S. Department of Justice (DOJ) Antitrust Division’s recent filing, which alleged that the company violated a 2022 consent decree and sought to bar its participation in the benchmarking service.
The DOJ has been pursuing separate litigation in federal court in Minnesota aimed at shutting down Agri Stats. Wayne-Sanderson Farms contends that the department’s latest action attempts to bypass that ongoing litigation by using the terms of the company’s prior consent decree.
The 2022 consent decree was part of the DOJ’s approval of the Wayne Farms and Sanderson Farms merger. In addition to DOJ oversight, it required a $69.8 million settlement related to a class-action wage lawsuit and a decade-long monitorship, managed by DOJ-appointed attorneys at the company’s expense.
Company Pushback Against DOJ Allegations
Jeremy Kilburn, Chief Legal and Compliance Officer for Wayne-Sanderson Farms, called the DOJ’s motion “premature and unwarranted.” The company’s filing highlighted its efforts to work with DOJ monitors about Agri Stats, stating that the monitors had yet to clarify their concerns.
“To date, our monitors have spent more time engaging with the Division than with us,” Kilburn noted, adding that the monitors had declined to meet with personnel capable of explaining Agri Stats’ operations.
The company emphasized its openness to collaborate with the DOJ to address any misunderstandings and to resolve the matter.
The Role of Agri Stats in Poultry Production
Agri Stats is widely used as a benchmarking tool in the poultry industry, providing data to help companies improve operations and performance. However, the DOJ has raised concerns that the service could facilitate anti-competitive practices, which have been central to its broader litigation against the tool.
Looking Ahead
Wayne-Sanderson Farms expressed hope that the DOJ would engage in constructive dialogue to resolve the issue. The case underscores the challenges of balancing compliance with regulatory requirements while leveraging essential industry tools for growth and efficiency.
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