"I've expressed my concern about several recent offers to buy IBP. The latest from Tyson Foods is just as worrisome to me. I'm concerned that the proposal will increase the amount of concentration in the meatpacking industry to the point where it will hurt the independent farmers trying to get fair prices for their products. Tyson's already large presence in the retail market might also affect the prices consumers pay at the meat counter. I will continue working to ensure that regulatory bodies give all of these offers careful examination and be certain that the federal laws are fully enforced. As I have done with previous proposals, I will a be sending a letter today to the Justice Department and Federal Trade Commission asking for cautious consideration of the Tyson Foods offer."
On October 3, Sen. Grassley wrote a letter to the Justice Department and Federal TradeCommission asking for careful consideration of a bid by Donaldson, Lufkin & Jenrette/RawhideHoldings Corp. for IBP. News reports had indicated that one of the world's largest feedproducers, Archer Daniels Midland Co. was a primary investor in the deal. ADM holdsapproximately a 12 percent interest in IBP. On Nov. 14, Grassley wrote another letter to Attorney General Janet Reno and FTC Chairman Robert Pitofsky, urging them to take similar action on a proposal by Smithfield Foods Inc. to acquire IBP.
Sen. Grassley is the author of several legislative proposals to address competition in theagriculture sector. One of his initiatives would give new authority to the Agriculture Department to challenge agribusiness mergers. Another Grassley bill would require the Agriculture Department 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, which was signed by the president in November. Sen. Grassley is also a principal cosponsor of legislation to restrict packer ownership of livestock. In addition, Sen. Grassley has aggressively sought to have federal regulators more carefully review agribusiness mergers to ensure competition.
Sen. Grassley is a senior member of the Judiciary Committee.