A federal antitrust lawsuit targeting the broiler chicken industry is nearing settlement, putting one of North Carolina's biggest agricultural sectors in the spotlight.

Why it matters: Chicken is American consumers' favorite — and typically cheapest — source of meat.

Driving the news: The federal government and several states, including North Carolina, sued the company Agri Stats in 2023, alleging it helped the broiler chicken industry collude to fix prices and coordinate production.

• The U.S. Department of Justice alleges Agri Stats collected data from chicken producers, sold industry reports back to them, and withheld comparable information from buyers, behavior the DOJ says was anticompetitive and harmful to consumers.

What they're saying: "It cost all of you a lot of money over a number of years, whether you were buying your food at a grocery store or a restaurant. It was virtually all downstream of this scheme," North Carolina Attorney General Jeff Jackson said last week.

State of play: Poultry is North Carolina's biggest agricultural commodity. Broiler chickens in particular made up more than 40% of the state's farm receipts in 2024, per U.S. Department of Agriculture data.

How it works: Broiler chicken production is highly vertically integrated, with most major players operating their own hatcheries, feed mills, processing plants and transportation divisions, but contracting out the chicken-raising to independent farmers, says Tomislav Vukina, a professor of agricultural and resource economics at NC State.

The other side: Agri Stats president Eric Scholer released a statement saying the company is "pleased to put this case … behind us" and arguing that its reports have helped companies grow and become leaner.

• Scholer said the only way chicken producers "can continue to keep prices low for consumers and remain in business is to make their operations as efficient as possible, and Agri Stats helps them to do exactly that."

By the numbers: Chicken consumption will exceed 102 pounds per person this year, according to USDA projections.

Keep reading about the industry

State economists are now forecasting that North Carolina will raise $35.7 billion in general fund revenues this fiscal year — roughly $600 million more than it forecasted earlier this year.

Why it matters: That upward revision may have made it easier for Republicans in the General Assembly to reach a major breakthrough on the state budget.

• The N.C. House and N.C. Senate had been at odds over how aggressively to cut taxes, with the House wanting to keep current tax rates because of uncertain economic forecasts for the state.

Zoom in: Economists with the Office of State Budget and Management and Fiscal Research Division said the upward revision was primarily driven by the realization of stock market gains and robust corporate profits.

What they're saying: "We think that we're probably about to get an upgrade in the predicted recurring revenues in a few days," Hall said last week of this forecast. "I think we had enough information [now] to look at that [tax] policy and see how it needed to change."

The other side: State economists warned that falling stock prices could hurt state revenues, given how big of a driver it has been for North Carolina tax revenue.

• Still, it revised next year's revenue forecast to $35.4 billion — which is less than this fiscal year, but still over $700 million more than the previous forecast.
• Gov. Josh Stein warned the state needs to be careful with its planning.
• "[W]e can't stake our future on stock market volatility," he wrote in a statement. "We need to make fiscally responsible decisions and continue to invest in what makes our state so strong: our people."

💧 Raleigh's water-use restrictions are still in effect as the drought continues. (WRAL)

• Water levels at Falls Lake, Raleigh's main drinking source, are at 77%.

🎟️ The Carolina Hurricanes begin the Eastern Conference Finals on Thursday in Raleigh. Their opponent will be the winner of tonight's Game 7 between Montreal and Buffalo. (NHL)

💰 Cary's proposed budget, its first since its town manager left in controversy, would raise taxes by 3.75 cents per $100 of assessed value and create 21 new police officer positions. (News & Observer)

🍽️ The loss of K&W Cafeteria was not just about the closure of a signature restaurant, but rather the end of cafeteria culture in the South. (The Assembly)

🇲🇽 The former Mandolin restaurant in Raleigh is set to become La Victoria Cocina Mexicana. (Triangle Business Journal 🔒)

🐖 The owner of Raleigh's beloved Ole Time Barbecue has died. (WRAL)

The Olivias and Liams will inherit the Earth.

What's happening: For the seventh year in a row, Liam and Olivia were the country's top baby names, according to Social Security card applications submitted at birth.

Yes, but: North Carolina has slightly different tastes.

Zoom in: Here were the top boys and girls names in North Carolina last year:

For the boys:

1. Noah
2. Liam
3. Oliver
4. William
5. James

For the girls:

1. Amelia
2. Charlotte
3. Olivia
4. Sophia
5. Emma

Explore the full top 100

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👋 Zachery here. One of my goals for the rest of the year is to eat at more strip malls.

• The simple reason: That is where some of the Triangle's best food is being made — and at a reasonable price.

State of play: The Triangle's rapidly diversifying population is being increasingly reflected in the restaurants popping up in its suburbs, and you could find a new cuisine to try every day, from regional Indian food and Burmese to Uzbek and Guatemalan.

Zoom in: My latest obsession has been Indo-Chinese food — a fusion of dishes that Chinese immigrants in Kolkata were making using ingredients available in India.

• Hakka noodles — think lo mein using Indian spices — are perhaps the signature dish, but the options are plentiful.

What we got: A reader recently directed me to the menu at Chai Fresh, a shop in Morrisville known for its teas, which also serves Indo-Chinese.

• The menu includes several noodle dishes, but what caught our eye was the chicken-chili momos ($12.99) — a basket of chicken dumplings smothered in a spicy chili sauce.
• The sauce was good enough to be eaten by the spoonful. We also got a cup of masala chai ($3.99) and some delightful onion samosas ($4.99).

🗣️ Let us know which strip mall we should go to next.