Tyson Foods face scrutiny over plant sales

By Blake Jackson

Senator Josh Hawley (R-Mo.) recently sent a letter to Donnie King, CEO of Tyson Foods, raising concerns over new allegations related to the sale of the company’s poultry processing plants in Dexter and Noel, Missouri. “You have previously stonewalled my efforts to learn the truth about your shutdown of poultry plants in Noel and Dexter, Mo.,” said Hawley. “Now, your company is apparently trying to deter injured farmers from speaking out against it.” The sale has been particularly detrimental to contract poultry growers who relied on the plants as their primary source for processing birds.

“This left local farmers, who built their farms around broiler chicken production, in a bind,” said Hawley. “And it happened after you previously assured me, on Sept. 15, 2023, that you would not prevent a competitor from acquiring your closed plants. Importantly, the lawsuit alleged that you were always planning to sell the plant to a non-competitor, in defiance of commitments you made to me and Congressman Jason Smith. When I wrote to you about this issue earlier this year, you declined to produce evidence rebutting the lawsuit’s allegations—instead claiming it would ‘not be appropriate’ to make the relevant documents public.”

The controversy stems from Tyson’s decision to sell the facilities to an egg production company, Cal-Maine, rather than to another poultry processing operation, leaving local farmers in a difficult position. Many of these farmers had based their businesses on broiler chicken production and now find themselves without a reliable processor.

This move came despite Tyson’s previous assurances to Hawley, made in September 2023, that it would not sell the plants to a non-competitor. The lawsuit further claims that Tyson was always planning to sell to a non-competitor, violating these assurances. Hawley noted Tyson’s refusal to provide evidence to counter these claims, stating the company had argued it was "not appropriate" to release the relevant documents.

Another troubling allegation was that Tyson had subpoenaed some of the poultry growers involved in the lawsuit, seeking communications between the farmers, federal investigators, and journalists. Hawley condemned this as an attempt to suppress free speech.

Cal-Maine completed the acquisition of the plants in March 2024. Following Tyson’s decision to close the plants, Hawley proposed the Strengthening Antitrust Enforcement for Meatpacking Act in 2023 to address such issues in the meatpacking industry.

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