BILLINGS — Some big payouts could be on the way to some Montana cattle producers.
Earlier this year, meatpacker JBS Foods agreed to pay $83.5 million as part of a settlement in a class action lawsuit led in part by a Montana nonprofit R-CALF USA, alleging price fixing.
Watch ag experts explain how producers can get their portion of the settlement:
Montana is home to hundreds, if not thousands, of cattle producers and four companies control almost 85 percent of the beef processing industry in the country.
That’s what’s at the heart of this lawsuit, which alleges that the big four meatpackers kept the prices paid to cattle producers low for four years, starting in June of 2015.
“During this period where we alleged that the meatpackers unlawfully colluded to depress cattle prices, consumers were paying record prices for beef and continued to do so,” said Bill Bullard, R-CALF CEO.
Bullard says that while the lawsuit is against JBS, Tyson, Cargill, and National Beef, only JBS has settled for $83.5 million.
“We just settled with one packer,” said Walter Schweitzer, Montana Farmers Union president. “And we have complaints with all four and so the other three are still an ongoing investigation, ongoing case.”
That means even more payouts could be coming.
Now is the time for those who believe they’ve been harmed to file a claim, with a looming deadline of Sept.15.
“We've had producers who have asked us if they filed a claim would their name be shared within the industry, and the answer is no,” Bullard said.
“They have to keep your name secret so if you have a claim and they pay you out, your name remains secret,” said Schweitzer. “So that way these packers can't blacklist you.”
The Montana Farmers Union is also a plaintiff through the National Farmers Union.
Schweitzer says claims aren’t just limited to feedlot owners and producers who sold to the big four, but others indirectly impacted.
“If you just traded in the commodities market on hedging your fat cattle, you have a claim,” Schweitzer said.
“What are also included are classes that represent feeder cattle, lighter weight cattle,” said Bullard.
Both men say this settlement and the cases against the other three packers are crucial for the industry and for consumers.
It's a fight against what they say is the monopolization of the meat industry, ultimately impacting the consumer.
“We view this to be absolutely essential in restoring competition for our industry, and our industry has been shrinking at an alarming rate,” Bullard said.
“This is just the beginning of it, and it's really one way of trying to keep these packers honest,” said Schweitzer.
