Bipartisan Bill Looks To Address Meatpackers

On Tuesday, Oregon senator Ron Wyden joined fellow Democrat Peter Welch of Vermont, as well as Republicans Mike Rounds  of South Dakota and Iowa's Chuck Grassley introducing legislation aimed at lowering skyrocketing grocery bills by cracking down on America’s “Big Four” meatpackers.  Tuesday’s announcement noted that the current practices by the packers are not only hurting consumers, but undercutting local ranchers as well. 

The senators said the Meat and Poultry Special Investigator Act would specifically strengthen the enforcement of existing price-fixing laws to ensure America’s Big Four meatpackers comply, which would allow more opportunities for ranchers and drive down meat prices for shoppers.  Currently, just four companies control 85% of the beef market and 67% of the pork market, which is up from 36% and 34% in 1980.

The lawmakers add the Big Four meatpackers are profiteering middlemen that have created a system allowing them to accumulate billions of dollars on the backs of ranchers struggling to make ends meet and shoppers suffering expensive meat and egg prices.

“For too long, Oregon ranchers and consumers have been greedily exploited by the Big Four meatpackers that sneak their way around regulations,” Wyden said. “While local ranchers work tirelessly day and night to support their small business and feed families across the country, these big companies keep raking in bigger bills at the expense of local communities in red and blue states alike. It’s way past time to level the playing field for local ranchers and bring grocery prices down for consumers at the meat counter by better enforcing laws that are already on the books.” 

“Vermonters rely on fresh foods from local farmers and ranchers to feed their families,” Welch said. “But with meat and dairy prices at the grocery store soaring sky high, small producers across the country are struggling to make ends meet and support their businesses. The rapid consolidation of the meatpacking industry further cripples fair competition. Our bipartisan bill will bring down costs for consumers and create opportunities for producers in red and blue states alike.” 

“For decades, America’s Big Four meatpackers’ anticompetitive practices have made it harder for Iowa cattle producers to receive a fair price,” Grassley said. “Our bill empowers USDA, in coordination with the Justice Department and Federal Trade Commission, to crack down on bad actors, ensuring a fair and functional marketplace that supports everyone who produces and enjoys quality American meat.” 

“Anticompetitive practices in the meatpacking industry hurt producers and consumers alike,” Rounds said. “Currently, four large companies, two of which are foreign-owned, control over 80% of the meat processing market. Our legislation would establish an office within the USDA to investigate violations of the Packers and Stockyards Act of 1921, which will support competition in meat and poultry markets.”

The Meat and Poultry Special Investigator Act would create and empower a team of investigators at the United States Department of Agriculture to prevent anticompetitive practices in the meat and poultry industry by enforcing existing antitrust laws, in coordination with the Department of Justice and the Federal Trade Commission. 

Cosponsors in the Senate include Senators Adam Schiff of California, Cindy Hyde-Smith of Mississippi, New Mexico's Martin Heinrich, Connecticut's Richard Blumenthal, John Hoeven, of North Dakora and New Jersey's Cory Booker.

The Meat and Poultry Special Investigator Act is endorsed by the National Farmers Union and the U.S. Cattlemen’s Association.

“If the bad actors in the marketplace have nothing to hide, then they should have no problem with reinforcing USDA’s oversight authority through the measures provided in this bill. It’s not enough that producers stand on a level playing field in the marketplace – there also needs to be a referee, with a whistle, there to throw a flag when there’s a penalty. USCA fully supports the Meat Packing Special Investigator Act and would like to applaud our Champions for ‘Competition’ in the Senate who never waiver on supporting producers not just in Oregon, South Dakota, and Iowa – but across the countryside,” said Justin Tupper, President of the United States Cattlemen’s Association.

“A special investigator at USDA is an important step to cracking down on unfair practices and leveling the playing field for independent livestock producers. Senators Wyden, Rounds, and Grassley get it—strong enforcement keeps monopolies in check. When family farmers and ranchers thrive, so do our rural communities,” said Rob Larew, President of the National Farmers Union.

Click Here to learn more about the Meat and Poultry Special Investigator Act.

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