Farmers Want DOJ To Investigate Meatpackers

in #food6 years ago


Farmers say that right now they are being paid less for their products, meanwhile items on the shelves continue to go up in price, for things like meat and other goods.

People in various places have seen skyrocketing grocery prices and experts say that it might take some time yet for the supply chain to return to normal.

Some meat suppliers say that those high prices are a reflection of the high demand for meat right now.

The beef and pork supply chain, among others, have seen significant disruption in recent weeks. But why are some meat suppliers being paid less for their products then? That is what some Kentucky farmers want an answer to.

They are asking the DOJ to investigate...

They want to know why they are being paid less for their animals when they see skyrocketing prices for those products in the community.

The Kentucky Commissioner of Agriculture has drafted a letter, with help from the Kentucky AG, in asking the DOJ to look into this.


They want answers to an alleged illegal anti-competitive practice that might be going on right now with some meatpackers in the industry.

The farmers say that the disparity is unacceptable and they are pushing for answers.

"We have about four packers that control 80% of the market,... When there is that much control by a few organizations, negative things happen." - D. Maples, Kentucky Cattlemen’s Association executive vice resident.

Lack Of Competition

That little competition in the market is a reflection of the monopolistic results that government helps to fuel, by keeping competitors out of the market and prices artificially high, with their occupational licensing rules and other restrictions on business.

The state helps to carve out that position, the limited diversification in the market, in a variety of ways using their force.

From the letter they are hoping that the DOJ will launch an investigation to figure out whether or not those few packers are colluding to fix prices.

Cattle producers have allegedly seen up to a 40 percent price drop over the past few months and that doesn't make much sense with such a high demand for beef and other meat products right now.

Pics:
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