Sen. Chuck Grassley today released a letter he sent urging vigorous scrutiny of the Tyson Foods purchase of IBP, Inc.
Grassley's letter to Attorney General Janet Reno and Federal Trade Commission Chairman Robert Pitofsky urged them to "scrutinize this proposal under the antitrust laws, paying heightened attention to any possible negative horizontal and vertical integration implications of the transaction."
Grassley expressed serious concerns that a combination of the nation's largest poultry producer with the world's largest producer of beef and pork products will significantly reduce market opportunities and increase anti-competitive business practices. He urged Reno and Pitofsky to consult with the Agriculture Department during the antitrust review to better understand the ramifications of such a merger on family farmers and producers.
"I share farmers and producers concerns that this transaction will adversely impact their ability to obtain fair prices for their products," Grassley said. "Moreover, I'm concerned that Tyson's current large presence in the retail market will negatively affect product choice and the prices consumers pay at the meat counter."
Last month, Grassley sent a letter to the Justice Department and Federal Trade Commission expressing concerns about the initial Tyson offer. He also sent letters to antitrust regulators expressing similar concerns regarding offers by Donaldson, Lufkin & Jenrette/Rawhide Holdings Corp. and Smithfield Foods, Inc. to purchase IBP.
Grassley is the author of several legislative proposals to address competition in the agriculture sector. One of his initiatives would give new authority to the Agriculture Department to challenge agribusiness mergers. Another bill would require USDA to dramatically improve its administration so it can better enforce the Packers and Stockyards Act. This legislation was included in the Grain Standards Act reauthorization. Grassley is also a principal cosponsor of legislation to restrict packer ownership of livestock.
In addition, Grassley has aggressively sought to have federal regulators more carefully review agribusiness mergers to ensure competition. He is a senior member of the Judiciary Committee.