OCM: Smithfield Merger Approval Shows Need for Competition Title
Bill on Livestock Competition Backed
Mean what you say
OCM: Smithfield Merger Approval Shows Need for Competition Title
Source: OCM
May 6, 2007
The Organization for Competitive Markets (OCM) is extremely disappointed in the May 4, 2007 Department of Justice Antitrust Division approval of the Smithfield Foods acquisition of Premium Standard Farms. The effect is that Southeast U.S. hog producers have one packer to buy hogs, and Midwest producers will see lower hog prices. Wavering legislators should now be convinced that a Farm Bill Competition Title must be enacted.
"I am perplexed at the Department of Justice's approval of a monopoly in the Southeast U.S. hog industry," said Keith Mudd, OCM president. "Smithfield and Premium Standard are the only major packing plants in Virginia, South Carolina and North Carolina. Thousands of southern hog farmers now have no ability to seek any competing bids for market hog sales, or for hog production contracts."
On October 18, 2006, Smithfield Foods announced an agreement to acquire Premium Standard Farms. Smithfield is the number one hog producer and hog packer in the country. Premium Standard is the number two hog producer and number five hog packer. There are no major packing plants in the Southeast U.S. other than Smithfield and PSF. In the Midwest, producers will have fewer marketing choices for hogs and hog contracts, as a result of the DOJ decision.
"The multi-decade failure to enforce antitrust laws has fallen to a new government low," continued Mudd. "The absurd proposition that concentration is good for consumers and farmers can no longer be maintained. The need for a Competition Title in the Farm Bill has never been greater. Government enforcement is clearly unsatisfactory to preserve independent agriculture."
OCM supports these bills that will remedy the damage to hog farmers:
1. S. 786 Market Transparency Act, to require pork packers to buy 25% or more of their hogs on the open market, while allowing 75% of hogs to be contracted;
2. S. 305 Packer Ownership Prohibition, to prevent meat packers from owning livestock in competition with farmers and disrupting supply and demand signals;
3. S. 1017 Captive Supply Reform Act, to require open and public trading of contracts for future delivery of livestock, rather than allowing the current secretive, market disrupting contract system.
The Organization for Competitive Markets is an nonprofit organization working for open and competitive markets as well as fair trade for American food producers, consumers and rural communities.
competitivemarkets.com
Bill on Livestock Competition Backed
KTIC 840 Rural Radio
May 5, 2007
Nebraska, US
Iowa U.S. Representative Leonard Boswell has introduced H.R. 2135 – the Competitive and Fair Agricultural Markets Act of 2007. The bill will improve enforcement of the Packers and Stockyards Act by designating a Special Counsel on competition matters - whose sole responsibility will be to investigate and prosecute violations on competition matters. The bill also strengthens producer protections by making it easier for them to prove adverse effects on competition.
National Farmers Union President Tom Buis (Buy-us) says - NFU recognizes this legislation as an important step in re-establishing competition and transparency. NFU believes the bill would accomplish at least four basic goals. Prohibit unfair, deceptive, and unjust discriminatory and anti-competitive practices. - Provide needed contract protections. - Prevent discrimination against producers belonging to an organization or cooperative. – And, develop rulemaking by requiring the Secretary of Agriculture to write regulations defining the term "unreasonable preference or advantage.
Officials of R-CALF USA say they are backing this bill because - it strengthens the U.S. Department of Agriculture's enforcement over agricultural markets, - and enhances open and fair competition in livestock markets.
kticam.com
Mean what you say
By John Crabtree, Center for Rural Affairs
Opinion
Ag Weekly
May 6, 2007
In a world where packers own all the hogs and cattle, what need is there for farmers and ranchers? That question haunts me in this farm bill debate.
Meatpackers claim that vertical integration increases efficiency. That is a lie. Family farms and ranches have demonstrated, time and again, that they can match or beat the cost of production in the packers' industrial facilities.
Packers use vertical integration and captive supplies to manipulate livestock markets, depressing prices across the board by killing their own when prices are high and turning to independent producers as residual suppliers when prices are low to the detriment of farmers, ranchers and rural communities.
Senator Tom Harkin (D-Iowa) and Senator Chuck Grassley (R-Iowa) have said they will fight for family farmers and ranchers and have proved as good as their word by offering legislation to increase competitiveness in livestock markets and ban packers from owning livestock.
Senator Larry Craig (R-Idaho) and Senator Mike Crapo (R-Idaho) should declare their support for competitive livestock markets publicly, while the writing of the farm bill begins, by joining the Iowans and other senators who have stood up and sponsored these bills.
My father always told me, "Say what you mean, and mean what you say." If senators and representatives want to say they stand with family farmers and ranchers then they should support a federal ban on packer ownership of livestock and a comprehensive competition title in the farm bill — in other words, they should mean what they say.
agweekly.com
Bill on Livestock Competition Backed
Mean what you say
OCM: Smithfield Merger Approval Shows Need for Competition Title
Source: OCM
May 6, 2007
The Organization for Competitive Markets (OCM) is extremely disappointed in the May 4, 2007 Department of Justice Antitrust Division approval of the Smithfield Foods acquisition of Premium Standard Farms. The effect is that Southeast U.S. hog producers have one packer to buy hogs, and Midwest producers will see lower hog prices. Wavering legislators should now be convinced that a Farm Bill Competition Title must be enacted.
"I am perplexed at the Department of Justice's approval of a monopoly in the Southeast U.S. hog industry," said Keith Mudd, OCM president. "Smithfield and Premium Standard are the only major packing plants in Virginia, South Carolina and North Carolina. Thousands of southern hog farmers now have no ability to seek any competing bids for market hog sales, or for hog production contracts."
On October 18, 2006, Smithfield Foods announced an agreement to acquire Premium Standard Farms. Smithfield is the number one hog producer and hog packer in the country. Premium Standard is the number two hog producer and number five hog packer. There are no major packing plants in the Southeast U.S. other than Smithfield and PSF. In the Midwest, producers will have fewer marketing choices for hogs and hog contracts, as a result of the DOJ decision.
"The multi-decade failure to enforce antitrust laws has fallen to a new government low," continued Mudd. "The absurd proposition that concentration is good for consumers and farmers can no longer be maintained. The need for a Competition Title in the Farm Bill has never been greater. Government enforcement is clearly unsatisfactory to preserve independent agriculture."
OCM supports these bills that will remedy the damage to hog farmers:
1. S. 786 Market Transparency Act, to require pork packers to buy 25% or more of their hogs on the open market, while allowing 75% of hogs to be contracted;
2. S. 305 Packer Ownership Prohibition, to prevent meat packers from owning livestock in competition with farmers and disrupting supply and demand signals;
3. S. 1017 Captive Supply Reform Act, to require open and public trading of contracts for future delivery of livestock, rather than allowing the current secretive, market disrupting contract system.
The Organization for Competitive Markets is an nonprofit organization working for open and competitive markets as well as fair trade for American food producers, consumers and rural communities.
competitivemarkets.com
Bill on Livestock Competition Backed
KTIC 840 Rural Radio
May 5, 2007
Nebraska, US
Iowa U.S. Representative Leonard Boswell has introduced H.R. 2135 – the Competitive and Fair Agricultural Markets Act of 2007. The bill will improve enforcement of the Packers and Stockyards Act by designating a Special Counsel on competition matters - whose sole responsibility will be to investigate and prosecute violations on competition matters. The bill also strengthens producer protections by making it easier for them to prove adverse effects on competition.
National Farmers Union President Tom Buis (Buy-us) says - NFU recognizes this legislation as an important step in re-establishing competition and transparency. NFU believes the bill would accomplish at least four basic goals. Prohibit unfair, deceptive, and unjust discriminatory and anti-competitive practices. - Provide needed contract protections. - Prevent discrimination against producers belonging to an organization or cooperative. – And, develop rulemaking by requiring the Secretary of Agriculture to write regulations defining the term "unreasonable preference or advantage.
Officials of R-CALF USA say they are backing this bill because - it strengthens the U.S. Department of Agriculture's enforcement over agricultural markets, - and enhances open and fair competition in livestock markets.
kticam.com
Mean what you say
By John Crabtree, Center for Rural Affairs
Opinion
Ag Weekly
May 6, 2007
In a world where packers own all the hogs and cattle, what need is there for farmers and ranchers? That question haunts me in this farm bill debate.
Meatpackers claim that vertical integration increases efficiency. That is a lie. Family farms and ranches have demonstrated, time and again, that they can match or beat the cost of production in the packers' industrial facilities.
Packers use vertical integration and captive supplies to manipulate livestock markets, depressing prices across the board by killing their own when prices are high and turning to independent producers as residual suppliers when prices are low to the detriment of farmers, ranchers and rural communities.
Senator Tom Harkin (D-Iowa) and Senator Chuck Grassley (R-Iowa) have said they will fight for family farmers and ranchers and have proved as good as their word by offering legislation to increase competitiveness in livestock markets and ban packers from owning livestock.
Senator Larry Craig (R-Idaho) and Senator Mike Crapo (R-Idaho) should declare their support for competitive livestock markets publicly, while the writing of the farm bill begins, by joining the Iowans and other senators who have stood up and sponsored these bills.
My father always told me, "Say what you mean, and mean what you say." If senators and representatives want to say they stand with family farmers and ranchers then they should support a federal ban on packer ownership of livestock and a comprehensive competition title in the farm bill — in other words, they should mean what they say.
agweekly.com
