A project of the
Organization for Competitive Markets
 
Date: June 20, 2003
FOR IMMEDIATE RELEASE
 
Contact: Steve Cady: 402.792.0041

OCM Expresses Concern Over Possible
Anti-Competition Bias of Packer Ownerhip Hearing

Lincoln, NE ~ The Organization For Competitive Markets (OCM) expressed serious concern today over the biased format of the House Agriculture Committee field hearing to be held in Grand Island, Nebraska on June 21, 2003.  OCM’s concern arises from the fact that the House Agriculture Committee has invited each and every major meat packer to testify while only allowing five livestock producers and no pro-competition or major farm organizations.

“This hearing will feature more packer representation than any concentration hearing in history,” said Steve Cady, executive director of OCM.  “Each of the four biggest meat packers in the country – Tyson, Smithfield, Swift & Co., and Cargill’s Excel – have been invited to present.  However, only five producers and no pro-competition organizations have been invited.”

Typically, agricultural concentration hearings in the House and Senate committees are far less biased in that several producer groups, several producers, and a packer representative are invited to testify.  The House Agriculture Committee chose, however, to provide 100% representation to the dominant packers in the livestock industry.

“We are disappointed that Representative Osbourne, who will chair the hearing, was not able to provide a more balanced format to explore the problems of packer ownership,” continued Cady.  “The hearing will suffer from a lack of analysis, in the antitrust and competition sense, of whether packer ownership and captive supplies violate the law, or should be outlawed through legislation.  In our view, this is a lost opportunity to advance the debate in a helpful manner.  We hope that Representative Osbourne and the House Agriculture Committee are able to secure more balanced hearings in the future.”

CCMP is not a membership organization. Funding comes from livestock auction markets and independent feeders on a per-head basis at the point of sale. All contributions are tax deductible under OCM’s non-profit status. For more information, contact Steve Cady at 402.792.0041 or visit the web site at www.competitivemarkets.com. 

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.