Central South Dakota News

U.S. Senators Mike Rounds, Chuck Grassley, Ron Wyden, and Peter Welch have reintroduced a bipartisan bill aimed at curbing anticompetitive practices within the meat and poultry sectors. The legislation, known as the Meat and Poultry Special Investigators Act, was first put forward by Rounds and Grassley in 2021.

The proposed legislation seeks to establish an "Office of the Special Investigator for Competition Matters" within the U.S. Department of Agriculture (USDA). The office will consist of investigators with the authority to issue subpoenas and will be tasked with preventing anticompetitive behavior by major players in the meat and poultry industries.

Senator Rounds expressed concern over the control exerted by "four large companies, two of which are foreign-owned," which dominate over 80% of the meat processing market. This office is intended to monitor and enforce the Packers and Stockyards Act of 1921 to maintain fair competition.

Senator Grassley emphasized the difficulties faced by Iowa cattle producers due to longstanding anticompetitive practices by America’s Big Four meatpackers. He stated that the bill would give the USDA, in collaboration with the Justice Department and Federal Trade Commission, the power to address these issues.

Senator Wyden highlighted the negative impact on Oregon ranchers and consumers who are "greedily exploited by the Big Four meatpackers," stressing the need for this legislative move to support local ranchers and reduce consumer prices at grocery stores.

Senator Welch pointed out the struggles of Vermont farmers who see rising meat and dairy prices. The rapid consolidation of the industry has further hindered fair competition, making this bipartisan bill a potential solution to reduce consumer costs and create more opportunities for producers.

The bill has garnered support from several other senators and endorsements from key organizations, including the National Farmers Union and the U.S. Cattlemen’s Association. Justin Tupper, President of the U.S. Cattlemen’s Association, voiced strong support for the legislation, emphasizing the need for reinforced USDA oversight and a level playing field for producers.

Rob Larew, President of the National Farmers Union, sees the role of a special investigator as essential in addressing unfair practices and maintaining competitive fairness in the industry.

Senator Rounds has previously led multiple initiatives aimed at supporting small ranch operations in South Dakota against dominant meatpacking firms. These efforts include various legislative proposals and calls for investigations into anticompetitive behavior, reflecting a consistent push for industry reforms.

The full text of the bill can be accessed here.