Sen. Chuck Grassley issued the following comment regarding the Justice Department (DoJ)announcement today on Cargill's acquisition of Continental Grain.
"I've been pushing the Justice Department to take a look at growingconcentration in agribusiness and to watch out for the impact of mega-mergers onrural America because a free market economy depends on competition. I've gottena lot of positive feedback from producers in Iowa about this initiative, and the JusticeDepartment's decision today confirms that our concerns have merit.
"Cargill's purchase of Continental's grain operations will affect the controlof domestic and export sales, grain storage, and barge and rail service for our cornand soybean farmers. I'm pleased to see the government take action to prevent ananti-competitive environment that would be detrimental to producers in Iowa andthroughout the country.
"I will continue to question whether or not bigger is better and scrutinizeclosely any future merger efforts in agribusiness. I've urged Joel Klein to visit Iowato better the Department's understanding of the affect of this trend on the familyfarmer. The goal is to keep marketplace conditions healthy and promotecompetition."
In June 1998, Sen. Grassley first asked the Justice Department to carefully evaluate theconcentration trend -- including agribusiness, air lines, pharmaceuticals, telecommunications, andrailroads -- for the disproportionately negative impact it may have on consumers and businesses inrural states like Iowa.