Republican Senator Josh Hawley from Missouri has proposed legislation to “break up giant meatpacking and poultry monopolies” and if approved, could impact the hold JBS USA and Cargill have on the Canadian beef-packing industry.
He said the Strengthening Antitrust Enforcement for Meatpacking Act followed a Tyson Foods announcement that it planned to close its poultry plants in southern Missouri, affecting thousands of workers.
His proposed bill would amend the Packers and Stockyards Act of 1921 to set up “specific thresholds for market concentration and allow federal antitrust officials to more effectively prohibit or unwind acquisitions by meat companies that “concentrate the meatpacking sector."
"Today's meatpacking monopolists are making massive profits while shutting down competition," Sen. Hawley said.
"Congress must give antitrust prosecutors the power to end anti-competitive behavior without lengthy court battles. It’s time to hold monopolies accountable and empower farmers."
In Canada, the government said this week it intends to give the Compeition Bureau more power to look into the financial records of the largest supermarket chains and intends to amend legislation to set a higher barrier when large companies want to buy smaller grocery chains and food companies.
What would really help is legislation to set caps on the percentage of the market that the three leading companies in any commodity or food-retailing and food distribution hold.
In cases where the three hold more than the cap, they should be forced to divest some of their holdings.
The biggest impact would be on egg grading and processing, chicken, turkey, beef and pork slaughter and processing and on Loblaws, Empire (Sobeys) and Metro.
