Perdue Unfair to Farmers, Says Justice

March 29, 2000

The Justice Department has charged Perdue Farms Inc. with unfair and deceptive practices in dealings with poultry growers. Justice also charges Perdue failed to abide by the terms and provisions of an agreement entered into with its growers.

Filing the complaint earlier this month resulted from a yearlong investigation by USDA's Grain Inspection, Packers and Stockyards Administration. GIPSA says the primary focus involved Perdue's placement of poultry growers on a rider contract that allegedly was instituted by Perdue to improve the performance of those growers who had unacceptably high production costs.

Also, the investigation focused on the alleged failure of Perdue to abide by the terms of a signed agreement with one of its poultry growers. The complaint alleges that Perdue engaged in an unfair practice and subjected two of its growers to an undue or unreasonable prejudice or disadvantage by using fewer than six flocks to determine those growers' eligibility for placement on a rider contract.

In addition, the complaint alleges that Perdue engaged in an unfair practice and subjected one of its growers to an unfair or unreasonable prejudice or disadvantage by failing to honor the terms of a signed agreement between Perdue and the grower.

BL0OMBERG NEWS reports the company, based in Salisbury, MD, denies the charges and says Perdue gave growers ample time to reduce costs. "We don't think we've done anything wrong," spokesman Tom Moyers said. "We were trying to be very fair by giving them an extra chance, rather than simply saying, `Your costs are out of line, you're out of here,'" Moyer said.