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Grassley wants scrutiny of JBS-Cargill pork deal

Iowa Senator Chuck Grassley wants the U.S. Department of Justice Antitrust Division to take a close look at the proposed acquisition of Cargill’s pork unit by JBS USA.

Grassley says if the deal goes through, the four largest pork processors will control roughly 71 percent of the processing capacity in the country. He says that raises competitive concerns.

“In an already consolidated pork industry, you have the possibility of reducing competition,” Grassley says, “and in doing that you have a threat to independent producers and reduced marketing opportunities for farmers. And the subsequent impact it could have on pork prices for consumers is a great concern.”

Grassley chairs the Senate’s Judiciary Committee, which has jurisdiction and oversight over antitrust matters.

The proposed deal has JBS paying 1.45 billion dollars for all of Cargill’s current pork business including two packing plants located in Iowa and Illinois; four hog farms—two in Arkansas and one each in Oklahoma and Texas; and five feed mills—two in Missouri, and one each in Iowa, Arkansas and Texas.

AUDIO: Excerpt from Grassley’s conference call with ag media 7/28/15