[Congressional Record Volume 141, Number 162 (Thursday, October 19, 1995)]
[Senate]
[Pages S15343-S15344]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DASCHLE (for himself, Mr. Harkin, Mr. Baucus, Mr. 
        Wellstone, Mr. Kerrey, Mr. Conrad, Mr. Grassley, Mr. Craig, Mr. 
        Leahy, Mr. Dorgan, Mr. Bond, Mr. Pressler, Mrs. Murray, Mr. 
        Feingold, Mr. Kohl, Mr. Burns, and Mr. Exon):
  S. 1340. A bill to require the President to appoint a Commission on 
Concentration in the Livestock Industry; to the Committee on the 
Judiciary.


                the livestock market report act of 1995

  Mr. DASCHLE. Mr. President, today several colleagues and I will 
introduce the Livestock Concentration Report Act of 1995. This 
legislation addresses the deep concern of cattle, hog and sheep 
producers from across the nation that the livestock industry does not 
operate in a free and open market. The bipartisan support from 
colleagues from Vermont to Washington is indicative of the importance 
of this issue.
  Livestock producers, especially cattle producers, are receiving the 
lowest prices in recent memory. Producers can barely make ends meet, 
let alone make a profit. The farmer's share of the retail beef dollar 
has also plunged from 63 percent in 1980 to only 40 percent today. 
Producers face economic ruin at a time when the four largest meat 
packers in the country control 87 percent of the cattle slaughtered and 
enjoy record profits.
  Our legislation calls for a thorough examination of the livestock 
markets to ensure they operate in a free and competitive manner. We ask 
the President to establish a Commission on Concentration in the 
Livestock Industry. This body will consist of six producers, two 
antitrust experts, two economists, two corporate financial officers, 
and two corporate procurement experts. The members will be appointed by 
the President, and the Commission will be chaired by the Secretary of 
Agriculture.
  The Commission will review the ongoing USDA Study on Concentration in 
the Red Meat Packing Industry to ensure the results are representative 
of current market conditions. Producers are concerned that the data in 
the study is out-of-date and will not provide insight into today's 
market. Additionally, the Commission will review the adequacy of price 
discovery in the livestock markets to ensure forward contracting and 
formula pricing practices do not unduly bias livestock markets. The 
causes of the wide farm-to-retail price spread will also be examined. 
The Commission will report its findings within 90 days of the release 
of the USDA study.
  I am very appreciative of Secretary Glickman's support throughout 
this process. USDA is currently pursuing a case against IBP, Inc., the 
largest meat packer for alleged anti-competitive 

[[Page S 15344]]
procurement practices. The Secretary has made this issue a top 
priority, and I look forward to working with him on the implementation 
of this Commission.
  This action is crucial for our Nation's livestock producers. Free and 
open markets are one of the foundations of our Nation and our economy. 
We as consumers all suffer if markets, especially food markets, do not 
operate freely. I hope this commission can get to the bottom of the 
problems that exist in the livestock market and provide answers for us 
in Congress about the steps we can take to ensure a fair shake for 
hard-working livestock producers and the Nation's consumers.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1340

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Livestock Concentration 
     Report Act of 1995''.

     SEC. 2. APPOINTMENT OF COMMISSION.

       Not later than 30 days after the date of the enactment of 
     this Act, the President shall appoint a Commission on 
     Concentration in the Livestock Industry which shall be 
     composed of the Secretary of Agriculture, who shall be the 
     chairperson of the Commission, and 2 members appointed from 
     among individuals in each of the following categories:
       (1) Cattle producers.
       (2) Hog producers.
       (3) Lamb producers.
       (4) Experts in antitrust laws.
       (5) Economists.
       (6) Corporate chief financial officers.
       (7) Corporate procurement experts.

     SEC. 3. DUTIES OF COMMISSION.

       (a) Duties.--The Commission on Concentration in the 
     Livestock Industry shall--
       (1) determine whether the study of concentration in the red 
     meat packing industry adequately--
       (A) examined and identified regional procurement markets 
     for slaughter cattle in the continental United States,
       (B) analyzed the effects that slaughter cattle procurement 
     practices, and concentration in the procurement of slaughter 
     cattle, have on the purchasing and pricing of slaughter 
     cattle by beef packers,
       (C) examined the use of captive cattle supply arrangements 
     by beef packers and the effects of such arrangements on 
     slaughter cattle markets,
       (D) examined the economics of vertical integration and of 
     coordination arrangements in the hog slaughtering and 
     processing industry,
       (E) examined the pricing and procurement by hog 
     slaughtering plants operating in the eastern corn belt,
       (F) reviewed the pertinent research literature on issues 
     relating to the structure and operation of the meat packing 
     industry, and
       (G) represents, for the matters described in subparagraphs 
     (A) through (F), the current situation in the livestock 
     industry compared to the situation of such industry reflected 
     in the data on which such study is based,
       (2) review the application of the antitrust laws, and the 
     operation of other Federal laws applicable, with respect to 
     concentration and vertical integration in the procurement and 
     pricing of slaughter cattle and of slaughter hogs by meat 
     packers,
       (3) make recommendations regarding whether the laws 
     relating to the operation of the meat packing industry should 
     be modified regarding the concentration, vertical 
     integration, and vertical coordination in such industry,
       (4) review the farm-to-retail price spread for livestock 
     during the period beginning on January 1, 1993, and ending on 
     the date the report is submitted under section 4,
       (5) review the adequacy of price data obtained by the 
     Department of Agriculture under section 203 of the 
     Agricultural Marketing Act of 1946 (7 U.S.C. 1622),
       (6) make recommendations regarding the adequacy of price 
     discovery in the livestock industry for animals held for 
     market, and
       (7) review the lamb industry study completed by the 
     Department of Justice in 1993.
       (b) Solicitation of Information.--For purposes of complying 
     with the requirements of paragraphs (2), (3), and (4) of 
     subsection (a), the Commission on Concentration in the 
     Livestock Industry shall solicit information from all parts 
     of the livestock industry, including livestock producers, 
     livestock marketers, meat packers, meat processors, and 
     retailers.

     SEC. 4. REPORT.

       (a) Submission of Report to the President.--Not later than 
     90 days after the study of concentration in the red meat 
     packing industry is submitted to the Congress, the 
     Commission on Concentration in the Livestock Industry 
     shall submit to the President a report summarizing the 
     results of the duties carried out under section 3. Not 
     later than 30 days after the President receives such 
     report, the President shall terminate the Commission.
       (b) Transmission of Report to the Congress.--The President 
     shall promptly transmit, to the Speaker of the House of 
     Representatives and the President pro tempore of the Senate, 
     a copy of the report the President receives under subsection 
     (a).

     SEC. 5. DEFINITIONS.

       For purposes of this Act--
       (1) the term ``antitrust laws'' has the meaning given it in 
     subsection (a) of the first section of the Clayton Act (15 
     U.S.C. 12(a)), except that such term includes section 5 of 
     the Federal Trade Commission Act (15 U.S.C. 45) to the extent 
     such section applies to unfair methods of competition, and
       (2) the term ``study of concentration in the red meat 
     packing industry'' means the study of concentration in the 
     red meat packing industry proposed by the Department of 
     Agriculture in the Federal Register on January 9, 1992 (57 
     Fed. Reg. 875), and for which funds were appropriated by 
     Public Law 102-142.
                                 ______