Tester, colleagues demand beef market investigation
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News from the office of Senator Tester
BIG SANDY — Senator Tester and his bipartisan colleagues are calling on the U.S. Department of Justice to investigate whether the control large meatpackers have over the beef processing market violates U.S. antitrust laws and fair competition principles.
In a letter to U.S. Attorney General Merrick Garland, they outlined the ongoing irregularities in cattle prices that have led to major corporate packers making significant profits while independent ranchers experience tightened margins and consumers face higher prices at the grocery store.
The U.S. meatpacking industry is significantly consolidated — just four companies operate 18 of the top 20 beef slaughter facilities in the country. Through formula and forward cattle pricing, large corporate packers are able to reduce the number of slaughters, curtail cash trades, and use depressed demand to manipulate future contracts and reduce the ability of independent ranchers to negotiate fair returns for their products.
Tester and colleagues will combat corporate consolidation and protect the livelihood of family farmers and ranchers. Following the steepest decline in cattle prices in 40 years, Tester called on the Department of Agriculture to take immediate action to stabilize beef markets. He released his three-part Rancher Relief Plan aimed to provide more certainty to Montana producers and give consumers more access to Montana’s world-class products. These bipartisan initiatives include:
— Increasing interstate commerce and diversifying meat production in Montana and neighboring states
— Legislation to ensure fair prices at the farm gate from large packers
— Bipartisan Senate push for mandatory Country of Origin Labeling since Congress repealed it in
