The chief executive of the second-largest chicken company in the US, Pilgrim’s Pride, has been charged by US prosecutors of conspiring to fix chicken prices.

Jayson Penn, CEO of Pilgrim’s Pride, was indicted on Wednesday by federal prosecutors in the US and faces a maximum sentence of 10 years in prison and a $1m fine if convicted.

US consumer protection officials have been investigating the US meat industry for the last year over allegations of price-fixing higher chicken prices across the US. Alongside Penn, three other senior officials in the US chicken industry have also been charged as part of the price rigging investigation.

The US government is also investigating potential market manipulation in the US beef industry over recent months, after meat companies made huge profits during the COVID-19 pandemic while farmers were unable to have their livestock processed due to plant closures.

Shares in Pilgrim’s Pride plunged 16% after the news emerged.