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Groups urge DOJ investigation of pork deal

Several ag, consumer and competition groups are urging the U.S. Department of Justice to investigate the proposed merger of JBS and Cargill. The American Antitrust Institute, Food & Water Watch, Iowa Farmers Union, the National Farmers Union and the Missouri Rural Crisis Center have written a white paper about their concerns.

The crisis center’s Rhonda Perry tells Brownfield the consolidation in the pork industry since 1985 is evident, “We can clearly see that farmers didn’t benefit. We’ve lost 90% of the hog farmers. Consumers didn’t benefit because we’ve seen 113% increase in consumer prices in terms of retail sales of pork.”

She says the Justice Department has dropped the ball over the years and government is increasingly allowing this type of concentration.

Perry says the white paper also addresses foreign ownership concerns in the food industry, “This would put the two largest packers of pork in the hands of foreign corporations. And, I think, you know, our organization thinks it’s an extremely dangerous path to go down.”

Perry points to the Missouri law passed in 2013 that allowed foreign ownership of one-percent of ag lands. Shortly afterwards, Smithfield was bought by a Chinese company which now owns 50-thousand acres in Missouri.

AUDIO:  Interview with Rhonda Perry (13:00 mp3)