Sec. 2. Findings and purposes
413 words·~2 min read·
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Congress finds the following: The meatpacking industry in the United States is highly concentrated, with a small number of firms controlling a dominant share of beef, chicken, and pork slaughtering and processing. 4 firms control 85 percent of the beef market and 67 percent of the pork market, which is up from 36 percent and 34 percent, respectively, in 1980. 4 firms control more than 60 percent of the market in chicken processing. The scale and market dominance of large meatpacking firms create substantial barriers to entry and expansion for independent and regional processors, limiting competitive alternatives for producers and consumers.
This highly consolidated meatpacking market has real consequences for farmers, workers, and consumers. Meatpackers have repeatedly used their market power in ways that suppress wages, destroy jobs through strategic plant shutdowns, and subject workers to extremely dangerous conditions while prices are to their advantage. Extreme concentration in meatpacking has resulted in diminished bargaining power for independent producers, increased vulnerability to unfair and discriminatory practices, and reduced economic viability for rural communities.
Consumers are paying more for meat, with the Department of Agriculture reporting that ground beef prices have increased about 16.4 percent since last year. Meanwhile, increased revenue is not flowing to farmers and ranchers as— in 1970, 70 percent of the consumer’s beef dollar went to cattle ranchers, but today, ranchers’ share of the consumer's beef dollar is closer to 30 percent; and profits remain with the big 4 covered meatpacking enterprises. The public interest requires competitive, transparent, and resilient markets for essential food products.
The purposes of this Act are to— restore competition in the meatpacking industry by reducing excessive concentration and market power; prohibit and reverse mergers and acquisitions in the meatpacking sector that have materially lessened competition; authorize and require structural separation, divestiture, or breakup of dominant meatpacking firms, where necessary, to restore competitive market conditions; ensure that no firm retains or expands market power in United States food and agricultural markets through capital obtained by corruption, bribery, or other unlawful conduct; deny competitive advantage derived from foreign state-backed or non-market financing that undermines fair competition in United States markets; protect independent cattle producers from abusive, coercive, or discriminatory practices arising from excessive buyer concentration; ensure that any restructuring of the industry results in safer, fairer, and more sustainable jobs for workers across the supply chain; promote the growth and viability of independent and regional meat processors; and help bring prices down for families in the United States.