Mississippi News
Sanderson Farms $4.5-billion sale finalized amid DOJ antitrust probe of poultry industry
Sanderson Farms $4.5-billion sale finalized amid DOJ antitrust probe of poultry industry
Days after Mississippi’s largest company – Laurel-based poultry processor Sanderson Farms – finalized its $4.5-billion sale to an out-of-state competitor, it agreed to pay its part of millions of dollars in restitution to workers for its alleged role in a scheme to suppress wages.
The U.S. Department of Justice filed a lawsuit this week that outlined decades of communications and data sharing between the poultry industry’s largest players, including Sanderson and its new owner, accusing the companies of working together to keep wages and benefits from being competitive.
“Through a brazen scheme to exchange wage and benefit information, these poultry processors stifled competition and harmed a generation of plant workers who face demanding and sometimes dangerous conditions to earn a living,” Principal Deputy Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division said in a statement.
Cargill Inc., Sanderson Farms Inc., and Wayne Farms signed an agreement with the Justice Department to pay $84.8 million in restitution to workers to resolve the lawsuit.
Cargill and Continental Grain Co. closed the acquisition of Sanderson Farms on Friday, almost a full year after announcing its plans. Continental owns Wayne Farms. The new corporate entity combines Sanderson – the third largest chicken production company in the country – with Wayne – the sixth largest – to create Wayne-Sanderson Farms.
“While we are pleased to have resolved this matter and put it behind us, both legacy companies are proud of their track record with their employees and growers and the agreement with DOJ evidences our commitment to continue to be an industry leader in those areas,” Wayne-Sanderson Farms said in a statement.
Cargill said in a statement it denies any wrongdoing but has been cooperative. The antitrust probe slowed the company’s plans to purchase Sanderson, which was first announced in August 2021.
The settlement, which still has to be approved by the court, also calls for a compliance monitor who will ensure the poultry companies are following regulations related to both processing facilities and with chicken growers.
The lawsuit says Sanderson and Wayne were both in violation of a protection act for the farms that hatch and grow chickens for slaughter. The poultry processors used a “tournament system” that adjusted payouts based on the quality of their brood compared to others, according to the lawsuit. The processors, however, are the ones supplying the chicks and feed.
DOJ alleged the poultry companies failed to provide the information the chicken growers needed to understand the inherent financial risks. Propublica outlined those types of risks in a 2019 investigation that showed how another poultry processor – Koch Foods – took advantage of Black Mississippi farmers to grow chickens, leaving them saddled with debt.
The agreement prevents Sanderson-Wayne from penalizing chicken growers by reducing base pay while still allowing for incentives and other bonuses. It requires expanded disclosures and transparency in contracts and prohibits retaliation against growers who raise antitrust concerns.
The new Sanderson-Wayne Farm is based in Oakwood, Georgia, with Clint Rivers, the CEO of Wayne Farms, as its head. The future of Sanderson’s corporate offices in Laurel is unclear.
“As we proceed with the integration of Wayne-Sanderson Farms, we look forward to investing in our communities, employees and grower partners to ensure there continues to be a strong and competitive American food supply,” the new company said in a statement.
Under its new ownership, Sanderson is no longer publicly traded. D.R. Sanderson founded the business in 1947 as a feed and seed store. For 75 years, it was family owned and based out of Laurel. Today, it spans more than 17,000 employees.
“It has been an incredible privilege to lead the Sanderson Farms team over the last 33 years and to continue my family’s legacy by helping to nourish families across the country,” former CEO Joe F. Sanderson, Jr. said in a statement. “I am proud of all we have achieved together, and I am confident that the fairness, honesty and integrity that has been synonymous with the Sanderson Farms name will carry on with Wayne-Sanderson Farms.”
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi News
Events happening this weekend in Mississippi: July 18-20
SUMMARY: Mississippi offers a variety of events this weekend (July 18–20), including family activities, art exhibitions, markets, and festivals. In Jackson, highlights include the Mississippi Wildlife Extravaganza, multiple exhibits at local museums, Neon Night at the Children’s Museum, and the JXN Film Festival. Farmers markets run in Jackson, Vicksburg, and Natchez. Ridgeland hosts Christmas in July and pottery classes. Clinton features train-themed crafts and a film screening. In the Pine Belt, Hattiesburg presents Clue: The Musical, zoo game nights, and exhibits. Laurel offers karaoke, art, and teen movie nights. Ellisville holds Market Days with crafts, food, and kids’ activities.
The post Events happening this weekend in Mississippi: July 18-20 appeared first on www.wjtv.com
Mississippi News
Events happening this weekend in Mississippi: July 11-13
SUMMARY: From July 11-13, Mississippi offers a variety of events for all ages. In Jackson, enjoy the season finale of “Late Night with Rita Brent,” Disney’s The Lion King, Jr., and exhibitions at the Mississippi Children’s Museum. Pearl hosts the Mississippi Mud Monsters with fireworks and a Back 2 School Bash. Ridgeland features the Wildflower Field, Art Park, Renaissance Christmas in July sales, and a Fairy Garden Workshop. Natchez and Vicksburg offer farmers markets and local entertainment. Hattiesburg presents Po Boy Fest, Clue: The Musical, and outdoor movies. Activities include rodeos, ice cream tastings, run clubs, and community tennis events across the state.
The post Events happening this weekend in Mississippi: July 11-13 appeared first on www.wjtv.com
Mississippi News
Death toll from catastrophic Texas flooding passes 100
SUMMARY: Catastrophic flooding in Texas over the July Fourth weekend killed at least 104 people, including 28 children, mostly near Camp Mystic, a century-old girls’ summer camp in Kerr County. Search-and-rescue teams continue to search swollen rivers for dozens still missing; officials expect the death toll to rise as more rain threatens the saturated area. Many victims were swept from cabins by flash floods early Friday, some clinging to trees. Authorities will investigate warnings and evacuation delays, noting poor cellphone service hindered alerts. Despite warnings issued before the flood, some residents didn’t receive them. President Trump plans to visit the state.
The post Death toll from catastrophic Texas flooding passes 100 appeared first on www.wjtv.com
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