Chicken wars rage in Oklahoma

Wednesday, May 5, 2010

McCurtain County in Oklahoma is home to a feed mill, a hatchery and a processing plant at Broken Bow providing work for 1,100 Tyson Foods employees. It's also the centre of high legal drama for the American poultry industry as Tyson Foods Inc. squares off against former growers. According to Tulsa World newspaper, a jury awarded seven growers the first round and US$7.3 million a month ago, and another group has a shot at the poultry giant this month.

Last month's award was only the first in a number of cases filed against Tyson two years ago. A group of about 60 growers and former growers is suing the food giant, claiming it tried to force them out of business because they wouldn't unnecessarily finance buildings to suit the giant company. They charge that they were penalized with inferior birds and feed in an effort to force them out of business.

The original suit was broken up to make deliberations easier. Tyson, based in Springdale Ark., intends to appeal the decision and is taking pains to point out that its business contributes $74 million to the county's economy.

The legal blow comes just when the chicken business was starting to look up for Tyson. In late March, Meatingplace.com reported that, in the first quarter of fiscal 2010, Tyson's income was $78 million or 3.2 per cent of sales, compared with a loss of $286 million or 12.8 per cent of sales at the same time last year. BF