Clemens Food Group to pay US$13.5M in pork price-fixing settlement

USA – Clemens Food Group has agreed to pay US$13.5 million to settle claims that it took part in a price-fixing scheme involving pork products in the United States.

The settlement, filed in federal court in Minnesota, addresses allegations from a group of indirect pork purchasers—primarily restaurants and foodservice businesses—who claim the company helped drive up pork prices through coordinated action with other industry players.

This deal marks the fifth major resolution in a broader lawsuit that has now secured nearly US$123 million in total settlements.

Other companies that have already reached settlements include Smithfield Foods at US$75 million , JBS USA at US$20 million, Seaboard Foods at US$10 million, and Hormel Foods at US$4.465 million.

The lawsuit accuses pork producers of using Agri Stats, a data-sharing platform, to align production levels and export strategies, allegedly reducing supply to push prices higher.

A class of indirect pork buyers was certified in 2023, and the case is proceeding to trial after recent summary judgment motions were denied.

As part of the settlement, Clemens Food Group will contribute funds to a pool that will cover compensation for affected businesses and help pay legal expenses.

The agreement also requires the company to allow up to 50 internal documents to be submitted as evidence during the trial against the remaining defendants.

Those still facing litigation include Tyson Foods, Triumph Foods, and Agri Stats.

Operational changes follow legal trouble

Beyond the lawsuit, Clemens is also closing its Kunzler processing facility in Lancaster, Pennsylvania, a move that will impact approximately 193 employees.

The decision to shutter the plant comes months after Clemens acquired Kunzler & Company, which included three facilities in the state.

The company issued a WARN Notice to employees, stating that operations at the 652 Manor Street location would end on December 7.

Although production is ending at the site, Clemens intends to continue selling products under the Kunzler brand.

Talks with a potential buyer for the Lancaster facility are ongoing, but the plant will remain closed until a sale is finalized.

Earlier this month, Clemens moved production of Kunzler-branded hot dogs and Hatfield franks to a third-party co-packer, reducing internal output and delivery operations.

Nine jobs were cut during that transition, including roles held by members of Teamsters Local Union No.

Clemens Food Group, founded in 1895 and based in Hatfield, Pennsylvania, employs over 5,000 people and is currently the fifth-largest pork processor in the country.

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