Today, Rep. Randy Feenstra (IA-04) joined several of his colleagues in sending a bicameral letter to Attorney General Merrick Garland, urging the U.S. Department of Justice (DOJ) to examine anticompetitive behavior by the nation’s four largest meatpackers. This comes as cattle producers have seen prices remain stagnant, while boxed beef prices have continued to rise.
“It is critically important that producers have fair and transparent markets for the commodities they produce,”the members wrote.“We urge the DOJ Antitrust Division to continue vigilance and where possible, provide updates of findings.”
The letter was led by Rep. Dusty Johnson (SD-AL) and Sen. John Thune (R-SD). Iowa Sens. Joni Ernst and Chuck Grassley, along with Reps. Ashley Hinson (IA-01) and Mariannette Miller-Meeks (IA-02) also signed on to this letter.
Click here or read below for the full text of the letter:
We want to bring to your attention our concerns with potential instances of improper and anticompetitive activities in the live cattle and beef industry. Nearly a year ago, on May 22, 2020, the U.S. Department of Justice (DOJ) Antitrust Division sent civil investigative demands (CIDs) to the nation’s four biggest meatpackers. Since that time, the American people have seen no public results from the investigation. In fact, there is no information to even suggest whether the investigation has concluded or is still ongoing. Due to the change in leadership at DOJ since these CIDs were issued and the new allegations of anticompetitive activities since that time, we encourage the Antitrust Division to continue its civil investigation of these entities. Additionally, to the extent allowed by statute, we request that DOJ provide Congress updates on any investigations or ongoing vigilance.
Cattle producers have faced significant challenges over the last few years. In 2019, a fire at a single beef plant in Kansas, a facility that accounted for approximately 6 percent of our nation’s beef processing capacity at the time, created significant market disruptions. In 2020, the COVID-19 pandemic-related plant closures led to additional processing capacity shortfalls and supply chain disruptions throughout the country. It appears plant labor shortfalls remain an issue today. While black swan events do not always prove wrongdoing, additional attention can reinforce confidence in the system.
Cattle producers, especially small feeders, are again experiencing difficult conditions that are threatening their ability to stay in business. With a tight supply chain, any changes in processing capacity can have a dramatic impact on cattle prices, preventing producers from capturing margin from boxed beef rallies.
It is critically important that producers have fair and transparent markets for the commodities they produce. We urge the DOJ Antitrust Division to continue vigilance and where possible, provide updates of findings.
Thank you for your prompt attention to this request.
Original source can be found here
