Business Bites: Burger giant sues over beef with meat producers

If there’s one thing to observe about capitalism, it’s giant corporations duking it out in a court of law over who’s mistreating consumers the worst.

McDonald’s is suing the “Big Four” of meat producers, accusing them of plotting together to artificially inflate beef prices. The lawsuit follows investigations by USDA and DOJ into anti-competitive practices in the beef industry, where these companies control the vast majority of U.S. beef production, so Mickey D’s might be onto something.

Meanwhile, USDA is taking additional steps to promote fair competition in agriculture, targeting those very same meat industry pricing practices. And Denmark-based Ambient Carbon is testing a methane-eradicating system for dairy barns, offering a potential solution to greenhouse gas (GHG) emissions for industry.

All that and more in this week’s Business Bites.

McDonald’s sues Tyson, others for fixing beef prices

The Golden Arches are going after four major meat producers with the claim that these companies conspired to inflate beef prices by 1) coordinating lower prices for cattle and 2) reducing production. USDA and DOJ are already investigating whether these “Big Four” violated competition laws, which seems like a foregone conclusion given that they control roughly 80% of U.S. beef production. JBS even agreed to settle previous price-fixing allegations without admitting wrongdoing.

This news also comes as the traditional beef industry, a major emitter of GHGs, struggles with the impacts of climate change, which are driving up costs across all of food and beverage. And while mitigation strategies do exist, they may raise costs further.

U.S. government announces actions to lower food prices

USDA has announced several measures to promote competition in agriculture, lower food prices and create fairer markets for farmers and ranchers, following President Biden’s Executive Order on Promoting Competition in the American Economy. I have decided to take credit for this news; they must have read the previous bite.

Key initiatives include improving access to seed germplasm for researchers, investigating pricing practices in the meat industry and enhancing transparency in cattle markets. USDA’s actions aim to address market consolidation and unfair pricing, supporting small farms and businesses by lowering costs and fostering innovation. At the same time, this shift signals stricter oversight and a push for more transparency and competition, potentially reshaping market dynamics and supply chains.

Ambient Carbon to test methane-eradicating system

As previously mentioned, climate change is hurting the beef industry, which means it’s a damaging dairy as well. Luckily, Denmark-based Ambient Carbon is partnering with Benton Group Dairies to test an innovative Methane Eradication Photochemical System (MEPS), which removes methane from dairy barn exhaust using a patented gas-phase photochemical process. It combines UV light and chlorine atoms generated from saltwater to break down up to 90% of methane at the source in a non-invasive, cost-effective way.

As global efforts to reduce methane emissions intensify, MEPS could offer a scalable solution for tackling emissions from sources like cow burps. If successful, this technology could play a vital role in helping the dairy industry meet sustainability goals.

Federal court enters consent decree after multistate listeria outbreak

A U.S. district court in California has issued a permanent injunction against Rizo Lopez Foods and its co-owners, Edwin and Tomas Rizo, following a multistate outbreak of Listeria monocytogenes linked to the company’s cheeses. The outbreak has affected 26 people across 11 states, resulting in 23 hospitalizations and two deaths so far. The consent decree requires the company to take corrective actions before resuming operations, meaning Rizo Lopez Foods must halt the production and sale of certain products until it complies with federal food safety laws.

Food testing acquisition expands Mérieux NutriSciences’ reach

Mérieux NutriSciences has entered into an agreement to acquire Bureau Veritas, a global food testing business, for EUR 360 million, or nearly $400 million, to strengthen its position as a global leader in food safety, quality and sustainability. This acquisition will expand the company’s reach in Asia, Canada and more with 34 laboratories across 15 countries, providing access to new regions with high growth potential.

As consumer expectations for transparency and quality increase, companies across the supply chain will need to collaborate with specialty firms to meet stricter regulatory requirements. This acquisition highlights the growing demand for rigorous food safety standards, traceability and sustainability — because it’s not just about making claims, but also tracking and acting upon the data behind them.

“A clever use of data is a clear priority for us,” Sebastien Moulard, president of Mérieux NutriSciences North America, said. “Recently we presented a new model of data sharing. The idea is to gather through a trusted partner an incredible amount of data (testing data, for example), analyze them and give insights to potentially identify trends in the food chain.”