The company has been accused of mistreating its chickens in its $450 million poultry processing plant in Freemont, Nebraska.
The lawsuit, filed by shareholders Krystil Smith and Tyler Lobdell at a Seattle court in June, claims "Costco illegally neglects and abandons its chickens." It also states that the executives of the company ignored clear signs of their continued treatment of chickens.
The $450 million chicken processing plant opened in Nebraska. As part of the plan, the company hired farmers around the area to raise chickens and deliver them to the plant, where they will be sold at a discounted price.
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Since 2009, Costco has been selling Kirkland Signature rotisserie chickens, which are known for their taste and cheap price. According to a report, the member-only grocery sold 106 million chickens last year at a loss.
The inhumane conditions the chickens were housed in, such as being cramped in small warehouses where they lived in their own filth for weeks, were revealed in an undercover video filmed by the animal rights group.
The New York Times published an opinion piece about the living conditions of the chickens in February of 2021.
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The company stated that it was committed to the welfare of animals. The welfare of chickens that have a life cycle of less than 45 days is as important as that of animals that have a longer life cycle.
According to the lawsuit, the chickens were bred to be large so that they could no longer stand on their own. disabled birds die from hunger, injury and illness
The lawsuit says that if the illegal treatment of chickens continues, it will undermine the success of the traffic-generation strategy. The benefits of using loss-leading rotisserie chickens to drive customer traffic and purchases will disappear as more consumers learn of the treatment of the chickens.
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Smith, who has been a vegan for 15 years and studied animal law, said she felt "complicit" in the abuse she saw in the video. She said that she doesn't have a special affinity for animals and that she doesn't have to defend the law.
The video was filmed at one of the farms that was contracted by Costco to produce chickens. According to the lawsuit, the grocery chain and Lincoln Premium Poultry recruited 120 farmers to raise as many as 190,000 chickens.
The lawsuit claims that most of the people who were contracted to raise chickens had never raised chickens before. Costco is responsible for training growers on how to raise chickens and how to care for animals and for setting animal welfare standards.
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