ORGANIZATION FOR COMPETITIVE MARKETS

P.O. Box 6486

Lincoln, NE 68506

 

Web site: www.competitivemarkets.com

 

Date:  April 26, 2001                            For Immediate Release

 

Contact:            Fred Stokes: 662-476-5568

                        Doug O’Brien: 860-379-6199

 

OCM, FARMERS BAFFLED AT COOP’S NEGOTIATIONS WITH “PRICE-FIXER TO THE WORLD”                                                    

 

The Organization for Competitive Markets (OCM) expressed serious concern with the possibility of this country’s largest coop selling elevators to Archer Daniels Midland (ADM).  ADM, the world’s largest U.S. processor of corn, soybeans and wheat, confirmed earlier this week that it is in talks with Farmland, Industries.  Analysts have stated that the most likely reason for the talks is the sale of Farmland grain elevators to ADM.  ADM and Farmland have not disclosed the exact nature of their talks.

 

Farmland is the largest farmer-owned cooperative in North America, encompassing 1700 local coops.  Farmland owns 13 elevators in the U.S., totaling about 150 million bushels, and also manages or leases another 14 elevators. 

 

Many of its members are stunned that Farmland would consider selling this vital link in grain marketing to ADM, which just a few years ago plead guilty to fixing prices in the feed additive market.  ADM was forced to pay a $100 million fine, the greatest criminal antitrust fine up to that point.  Three of ADM’s executives were also found to have violated federal criminal laws in the price-fixing scheme.

 

“ADM is no friend of the farmer.  The feed additive case exposed ADM for what they really are:  price-fixer to the world,” said Fred Stokes, president of OCM.

 

“As a Farmland member, I wonder if I have any say in this transaction,” stated Keith Mudd, Vice President of OCM.  “If Farmland provides ADM with greater control over marketing, Farmland will not be representing the interests of its members.”

 

ADM is already one of the leaders, if not the leader, in soybean crushing, corn milling, ethanol production, feed additives, flour milling and multiple elevator companies.  “The ubiquitous presence of ADM in the marketing and processing of agricultural commodities increases its ability to manipulate markets,” stated Doug O’Brien, associate counsel for OCM.  “This rumored deal could have a devastating impact on access to markets and competition, especially on a regional basis.”

 

The Organization for Competitive Markets is a multidisciplinary, nonprofit group of farmers, ranchers, academics, attorneys, and policy makers dedicated to reclaiming the agricultural marketplace for independent farmers, ranchers and rural communities.

 

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