R-Calf, which gave Canada’s beef industry fits with its push
for tariffs, is accusing Cargill of taking advantage of a temporary lack of
competition in Pennsylvania.
The organization says Cargill reduced its bids for cattle
while the local JBS-owned plant was temporarily closed last fall.
It made its case to the Senate Judiciary Committee in
Washington, claiming Cargill violated anti-trust regulations.
Cargill answered that it believes it is in compliance with
all legislation and regulations.
Cargill operates a beef plant
in Wyalusing, Pa. Cargill and JBS are the only two major cow and fed cattle
buyers in the Northeast, the groups say.
The JBS plant at Souderton closed
Oct. 25 to deal with pest problems and re-opened Nov 15.
“Cargill likely enjoyed
windfall profits at the expense of both regional cattle producers and regional
consumers because wholesale meat prices were increasing as cattle prices were
decreasing,” the complaint filed by R-Calf and Buckeye Quality Beef Association
says.
Cargill Director of
Communications Mike Martin said: "We conduct our business in compliance
with all competition laws and believe it is important to do so for fair and
honest competition in the marketplace."
