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Committee passes bill to crack down on consolidation in meat processing industry

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(© W. Scott McGill – stock.adobe.com)

The House Agriculture Committee this week to pass two legislative efforts led by Rep. Abigail Spanberger (D-VA-07) to address rising food prices — including her bill to tackle anticompetitive practices in the American meat and poultry industry.

In the face of consolidation among meat processors and rising food prices in Virginia and across the country, Spanberger’s Meat Packing Special Investigator Act would establish a new “Office of the Special Investigator for Competition Matters” within the USDA Packers and Stockyards Division. This new USDA Special Investigator would focus on preventing shortages, enforcing America’s anti-trust laws, and holding bad actors in the meat and poultry industry accountable.

In addition to passing her Meat Packing Special Investigator Act, the House Agriculture Committee also voted to advance Spanberger’s bipartisan Butcher Block Act. This legislation — introduced alongside Dusty Johnson (R-SD-AL) — would help rebalance the U.S. cattle market by easing regulatory barriers and improving access to meat processing grants for small processors.

“Colleagues from both parties, from all regions of the country, have consistently expressed skepticism of current enforcement of the Packers and Stockyards Act,” Spanberger said ahead of the vote. “We have also discussed frustration with the speed and capacity of the current investigation at the Department of Justice into the big four meat packers. We are coming up on the two-year anniversary of DOJ launching an investigation, but we have not gotten any substantive updates or answers. Meanwhile, America is losing a staggering 40 family cattle farms a day. We cannot continue to accept the status quo, and America’s consumers cannot continue to accept higher prices and less-secure food supply chains due to concentration.”

The Meat and Poultry Special Investigator Act is endorsed by the Virginia Cattlemen’s Association and the National Farmers Union.

“Virginia Cattlemen’s Association policy supports efforts to ensure a free, private enterprise driven and competitive marketing system for cattle. We thank Congresswoman Spanberger for her efforts to bring needed transparency, common sense, and accountability to our industry through the Meat and Poultry Special Investigator Act,” said Brandon Reeves, executive director, Virginia Cattlemen’s Association.

“Proper oversight and the efficient enforcement of existing law is critical for the future viability of our industry,” said Jay Calhoun, Virginia cattle producer. “We have been waiting years for the Department of Justice to conclude their investigation into the meat packing industry. Over that time, cattle producers have continued to see their share of the retail value of beef decline at an alarming rate.  Having a dedicated unit to investigate Packers & Stockyards violations will help our industry provide the enforcement and protections cattle producers deserve. I would like thank Congresswoman Spanberger for her efforts to bring needed transparency and efficient accountability to our industry through the Meat and Poultry Special Investigator Act. ”

The Meat Packing Special Investigator Act is co-led by Mariannette Miller-Meeks (R-IA-02). Their legislation is the companion bill to legislation introduced by U.S. Sens. Jon Tester (D-MT), Chuck Grassley (R-IA), and Mike Rounds (R-SD) in the U.S. Senate.

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