Bipartisan senate bill targets meat industry consolidation

Sens. Ron Wyden, D-Ore., Peter Welch, D-Vt., Mike Rounds, R-S.D., and Chuck Grassley, R-Iowa, introduced bipartisan legislation to curb anti-competitive practices in the meatpacking industry and reduce rising grocery prices, particularly for meat and eggs.

The Meat and Poultry Special Investigator Act would establish a U.S. Department of Agriculture office dedicated to enforcing antitrust laws and investigating potential violations of the Packers and Stockyards Act. The new office would work in coordination with the Department of Justice and Federal Trade Commission to hold the nation’s four dominant meatpackers accountable.

Today, just four companies control 85 percent of the beef market and 67 percent of the pork market, which is up from 36 percent and 34 percent in 1980. Lawmakers say this level of consolidation has enabled the meatpackers to drive up consumer prices while squeezing local ranchers out of fair competition.

“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.”

Supporters of the bill say it will provide long-overdue oversight and restore fair competition. Grassley noted that anti-competitive behavior has long hurt Iowa cattle producers. Rounds emphasized that two of the four meatpackers are foreign-owned, further reducing transparency and market fairness.

The Meat and Poultry Special Investigator Act is endorsed by the National Farmers Union and the U.S. Cattlemen’s Association. Cosponsors in the Senate include Sens. Adam Schiff, D-Calif., Cindy Hyde-Smith, R-Miss., Martin Heinrich, D-N.M., Richard Blumenthal, D-Conn., John Hoeven, R-N.D., and Cory Booker, D-N.J.

“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.