Business dispute with Pilgrim's Pride goes to the courts

Many people in Maryland are already aware that the poultry industry is worth billions of dollars to manufacturers like Pilgrim's Pride. The company relies on poultry growers to provide it with the chickens that it processes. One of those growers is taking its business dispute with the chicken giant to court.

In 2009, M&M Poultry, Inc., entered into a production agreement with Pilgrim's Pride. The original agreement was first amended in 2010 and then again in 2012. M&M, which has been in business since 1996, and its owner have worked diligently to care for the poultry it receives from Pilgrim's Pride and maintain the business.

The company and its owner claim that Pilgrim's Pride breached its agreement by sending them chicks with different genetics -- some of which were not as healthy as others -- and different qualities and quantities of feed for the chicks. A ranking system was instituted that ultimately put M&M in a disadvantageous position. The company accuses Pilgrim's Pride of making false promises about income and cost projections, and it claims that the company kept information from it and other growers, including changes in company policies. M&M claims these actions have irreparably damaged working relationships with growers.

When a Maryland company enters into a contract with another company, the expectation is that each party will perform as promised. When that does not happen, the injured party is entitled to take the business dispute to court. If the court is satisfied that the accused party breached the contract, the other party may be awarded both monetary and non-monetary damages.

Source:, "Poultry company sues Pilgrim's Pride for breach of contract", Kyla Asbury, May 19, 2015

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