Grassley: Justice Department Move to Block JBS from Purchasing National Beef Packing Company

Press Release

Grassley: Justice Department Move to Block JBS from Purchasing National Beef Packing Company

Senator Chuck Grassley issued the comment below about the federal government's action today to block the acquisition by the third-largest U.S. beef packer, JBS, of the fourth-largest beef packer, National Beef Packing Company. The Justice Department filed a civil antitrust lawsuit in U.S. District Court in Chicago.

Senator Grassley has been urging the Justice Department for the last decade to more aggressively scrutinize mergers in the agricultural sector with the goal of maintaining a competitive marketplace for independent producers, family farmers and the American consumer.

The letter Senator Grassley wrote in March expressing concerns about the effort by JBS to buy National Beef is below this comment. In addition, Senator Grassley requested the hearing held in May by the Judiciary subcommittee on antitrust to shine a spot light on the problems with this proposed acquisition and competition in agriculture. He has introduced legislation to strengthen the antitrust laws relative to agricultural transactions, and to require the Department of Agriculture to formally comment on ag-related mergers during the anti-trust review process. Senator Grassley also has long sought legislation to ban packer ownership of livestock. He is a senior member of the Senate Judiciary Committee.

Senator Grassley's comment:

"Thank goodness the Justice Department finally has recognized that there is too much concentration in agriculture, and is taking some action to protect consumers and ensure there is a level playing field for independent producers and family farmers. It's welcome news for those of us who've been urging antitrust enforcers to pay more attention to the wave of consolidation in the agricultural sector, a trend that increases the ability of larger companies to engage in predatory business behavior, limits the buying and selling options for farmers, and results in higher prices and fewer product choices for consumers. For some time I believed that antitrust enforcers were asleep at the switch, and today's action couldn't come too soon.

"Agricultural competition issues need to stay on the Justice Department's radar screen, particularly with the rising cost of food worldwide. The reality is that every American family pays for reduced market opportunities, anticompetitive business practices, and excessive consolidation in agriculture. That's why the decision by the antitrust division to block the proposed JBS-National Beef acquisition is a positive first step. I'll continue to prod federal anti-trust enforcers to be vigilant about keeping the agricultural sector of our economy competitive."

Source