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