Thune Statement on USDA Cattle Market Investigation Report
“South Dakota’s cattle producers are facing extreme volatility in the cattle market, and I remain concerned about potential anticompetitive activity in the highly concentrated meatpacking industry.”
WASHINGTON — U.S. Sen. John Thune (R-S.D.) today issued the following statement after the U.S. Department of Agriculture (USDA) released a report on its investigation into cattle market volatility during the coronavirus pandemic and following a 2019 fire at a Tyson Foods beef plant in Holcomb, Kansas. The report provides an analysis on cattle market conditions and considerations for improving the cattle market. The investigation into potential violations of the Packers and Stockyards Act is ongoing.
“South Dakota’s cattle producers are facing extreme volatility in the cattle market, and I remain concerned about potential anticompetitive activity in the highly concentrated meatpacking industry.” said Thune. “I look forward to reviewing the considerations provided in this report, and I will continue to press the Department of Justice to conclude its investigation intopotential price manipulation and other anticompetitive activities in the meatpacking industry.”
On April 8, 2020, Thune urged USDA to take further action to strengthen the integrity of the cattle market by requesting that USDA’s Packers and Stockyards Division investigate the cattle market volatility due to the COVID-19 pandemic and to conclude its investigation into beef pricing margins after the Holcomb, Kansas, Tyson plant fire. The following day, Thune urged Attorney General William Barr to open an investigation into the beef industry.
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Monitoring potentially anti-competitive practices among the Big Four packers is a good start, and our delegation should be commended. But we ultimately also need to look at helping our smaller operations rather than simply penalizing the large ones.
First thing we can do, which is a no-brainer, is to bring back Country Of Origin Labeling. Consumers have the right to know where their food is coming from. If they want to purchase foreign beef, that’s just fine. But let’s give them the choice.
Second, we need to return regulatory authority to the states. Rep. Massey’s PRIME Act would be a great step toward letting smaller operations compete without having to jump through all the federal hoops that the Big Four have lobbied so hard for. As with most industries, over-regulation only hurts the smaller competitors.
Third, we need to do what we can to encourage locally-owned / co-op packing operations. People want to support their local beef industry, so let’s make it easier for them to do so.
Just my three cents.
Gideon, Not that I disagree with any of your goals/concepts, I think your “no-brainer” conflicts with regulation from the states and greater marketshare of packers which are locally owned or coops.
Effective, reliable COOL requires federal regulation because of inter-state commerce as well as our Trade agreements with Mexico, Canada and likely the other South American countries.
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