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stopcartel.org         Feb 8, 2012 - 00:10
Competition is a good thing--or not
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Eric Holder, Attorney General U.S. Department of Justice, and Tom Vilsack, U.S. Secretary of Agriculture, were in Fort Collins, Colo., on Aug. 27 to conduct a workshop on competition issues in agriculture.
However, the 1,100 people jammed into the Lory Student Center at Colorado State University were there to comment on the Grain Inspection, Packers and Stockyards Administration's proposed rule changes.

Vilsack acknowledged this fact in his opening statements. This was the fourth in a series of competition workshops held by USDA and DOJ across the country. It was a coincidence that this workshop fell during the 60-day comment period for the proposed GIPSA rule. Vilsack said that any comments made specifically about the GIPSA rule would be added to those collected during the 60-day comment period.

The night before the competition workshop, groups for and against the GIPSA rule gathered in Fort Collins to rally the troops. The National Cattlemen's Beef Association held a press conference at the Hilton Hotel, and one hour later the Public Forum to Save Rural America and Family Ranching was held at the Marriott, sponsored by the Food and Water Watch organization.

Over the last six months USDA/DOJ held competition workshops focused on the seed, pork, poultry, and dairy industries. The Fort Collins workshop focused on competition and regulatory issues facing the livestock industry.

"We have made these workshops a Cabinet-level priority so that we can most effectively and efficiently determine how to ensure a fairer, more competitive marketplace for all of you," Holder said.

Holder said he knew that consolidation in the meat packing industry was a top concern for the many producers and that the DOJ was prepared to take appropriate enforcement action when a merger threatens to erode competition. As an example, he referred to the JBS proposed acquisition of National Beef Packing Company. The DOJ challenged this purchase and both parties abandoned the transaction last year.

"We realize that many of you are concerned more generally about market concentration," Holder said. "Let me assure each of you that administration leaders, across and beyond USDA and DOJ, understand that having a fair and competitive agricultural marketplace is critical for producers and consumers alike. Enforcing our antitrust laws is an essential part of our core mission."

Holder and Christine Varney, assistant attorney general for antitrust at the U.S. Department of Justice, agreed that antitrust enforcement is not the solution to every problem.

"We don't view big as necessarily bad," Holder said. "In our view fairness is the key and that there is a level playing field for competitors no matter their size."

Many in the Lory ballroom hope that the new GIPSA rule is part of that solution. The rule is intended to address the increased use of contracting in the marketing and production of livestock and poultry by entities subject to the Packers and Stockyards Act. The intent is to level the playing field between packers, live poultry dealers, swine contractors, and the nation's poultry growers and livestock producers.

"Given the consolidation that has taken place in the livestock industry over the past decades, it is critical to ensure a fair market still exists to give all players an honest chance at success," Vilsack said. "A fair and competitive marketplace is important not only for producers but also for consumers, and today's open and transparent dialogue with ranchers, farmers, academics and other industry stakeholders will provide us with an understanding of the complex issues in this important industry."

Vilsack said as he travels across the country he hears a consistent theme: Producers are worried about whether there is a future for them and for their children in agriculture. He said producers want to know there is an open and transparent market for their livestock and commodities.

Holder said it is ultimately about more than trends or this year's challenges; it is about livelihoods and a centuries-old American way of life. Holder said that way of life includes a vital agricultural sector and the values that are associated with it.

 

source  hpj.com
 
 
 
 
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