Organization for Competitive Markets
P.O. Box 6486
Lincoln, NE 68506
Date: August 25, 2004
FOR IMMEDIATE RELEASE
Contact: John Lockie, 406.628.9850
NPPC Files Brief Supporting Tyson in Price Manipulation Case
Lincoln, NE ~ The National Pork Producers Council (NPPC) has
filed an amicus curiae brief supporting Tyson Fresh Meats (formerly IBP) in the
historic Pickett v. Tyson Fresh Meats trial, reported the Organization
for Competitive Markets (OCM) today. The case is pending appeal before the 11th
Circuit U.S. Court of Appeals after the trial court threw out a February 17,
2004 jury verdict. The jury found that Tyson
had manipulated fed cattle markets through its use of captive supply contracts. NPPC told the court that it was unfair to “surprise”
packers with an enormous jury verdict for buying captive cattle. NPPC ignored the price manipulation impact
of the packer practice. All appeal
briefs in the case are available at the OCM website.
The Plaintiff cattlemen appealed to reinstate the jury verdict of $1.28 billion in damages returned against Tyson Fresh Meats, Inc., formerly IBP, the nation’s largest meat packer. The jury found Tyson had used captive supply contracts to depress prices for cattle. NPPC’s brief supports Tyson in arguing that price manipulation can be overlooked when parties voluntarily engage in these contracts. “NPPC’s position that a voluntary agreement between parties is a shield to price manipulation charges would ultimately make consensual price fixing contracts lawful,” said Michael Stumo, OCM general counsel. “Fortunately, that is not the law.”
NPPC legal counsel Edward M. Mansfield of Belin Lamson McCormick
Zumbach Flynn of Des Moines, Iowa filed the brief. According to the document,
"NPPC’s officers have approved the preparation and filing of this
brief." NPPC’s current officers
are Keith Berry, President, Green Castle, IN; Don Buhl, President-Elect,Tyler,
MN; Joy Philippi, Vice-President, Bruning, NE; and Jon Caspers, Past President,
Swaledale, IA. Other NPPC board members
are Jill Appell, Altona, IL; Dr. Mike Terrill, Snowflake, AZ; Bryan Black,
Canal Winchester, OH; Ric Morren, Beresford, SD; Lois Britt, Mount Olive, NC;
Rick Rehmeier, Augusta, MO; and Steve Schmeichel, Hurley, SD.
In its brief, NPPC argues that the Packers and Stockyards
Act should not be used as a mandate to the livestock industry to utilize spot
marketing. Further, the non-profit organization that has lobbied for less
government intrusion says if any such directive is to be made, it should come
from Congress and not from a single jury decision. "Just because the
agreements between producers and packing companies fall within the Packers and
Stockyards Act does not mean that the provisions of those agreements are
subject to some special scrutiny," wrote NPPC.
Keith Mudd, OCM President observed, "We find it
interesting that Tyson Fresh Meats has found support for its position from the
NPPC, which is a nonprofit corporation purportedly dedicated to enhancing
opportunities for the nation’s pork producers. The number of independent hog
producers in this nation has plummeted over the past decade, due in a large
part, to the complete breakdown of open, competitive markets. Vertical
integration in the livestock industry is occurring at a rapid pace because of
market manipulation by meat packers like Tyson. The Pickett v. Tyson
trial was a historic finding by a jury. We are confident that the Court will
affirm the jury’s decision, which will, in turn, restore competition to the
marketplace and encourage the Grain Inspection, Packers and Stockyards
Administration (GIPSA) to carry out its mission. The future of independent
livestock producers hangs in the balance," noted Mudd.
The Organization for Competitive Markets (OCM) 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.