We’re covering the latest scandal involving meat giants JBS. Brazil’s industrial woes. And the new Covid-19 death record — as well as promising research on the pandemic.
Meat giants JBS face governance issues. Again.
Top executives at Pilgrim’s Pride were charged by a Colorado grand jury for allegedly taking part in a price-fixing scheme between 2012 and 2017. The U.S.’ second-largest poultry producer is owned by Brazilian meat processing giant JBS, and accounted for 24 percent of the parent company’s BRL 56 million Q1 2020 revenue. The scandal forced Pilgrim’s stock to crash 12 percent on Wednesday.
- CEO Jayson Penn and Vice President Roger Austin, among others, face ten years in prison and up to USD 1 million in fines.
- Competitors Tyson Foods and Sanderson Farms have also received grand jury subpoenas as part of the investigation, according to regulatory filings.
Why it matters. The investigation could cost the company hundreds of millions, perhaps billions, in fines. That will come as an additional shock to an industry that has been severely affected by Covid-19, as slaughterhouses have been identified as coronavirus breeding grounds — forcing companies to shut down part of their production.
Multiple strikes. JBS has had a laundry list...