With the goal of strengthening the enforcement of the Stockyards and Packers Act, Sen. Chuck Grassley, R-Iowa, chairman of the senate judiciary committee and a member of the senate agriculture committee, joined Senators Ron Wyden, D-Ore.; Mike Rounds, R-S.D.; and Peter Welch, D-Vt., to introduce the Meat and Poultry Special Investigator Act.
The act would create and empower a team of investigators at USDA 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.
In a press release, the senators said the legislation will allow more opportunities for ranchers and drive down meat prices for shoppers.
“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.”
Wyden, Welch, Rounds and Grassley’s bipartisan legislation would specifically strengthen the enforcement of existing price-fixing laws to ensure the big four meatpackers comply.
“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.”
Rounds added, “Anticompetitive practices in the meatpacking industry hurt producers and consumers alike. 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.”
Reducing meat and dairy prices at the grocery store is a goal of the legislation.
“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.”
The Meat and Poultry Special Investigator Act is endorsed by the National Farmers Union and the U.S. Cattlemen’s Association.
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