[Congressional Record Volume 167, Number 100 (Wednesday, June 9, 2021)]
[Senate]
[Page S4002]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                          Meatpacking Industry

  The JBS attack also highlighted a second problem--the highly 
concentrated nature of the meatpacking industry. When one or more of a 
handful of companies controlling the meatpacking industry experiences a 
problem, whether that is a plant shutdown due to COVID transmission or 
a cyber attack, that creates a potentially serious problem for the 
entire U.S. meat supply.
  We all remember seeing bare meat department shelves at times during 
the pandemic. Had meatpacking capacity been less concentrated, it is 
likely that we would not have seen such significant shortages.
  This high level of concentration in the industry also creates a 
problem for livestock producers, who rely on meatpackers to buy and 
harvest their animals and get them to consumers.
  If a meatpacker has to shut down a plant, that means that farmers or 
ranchers may lose out on getting their livestock to market.
  The highly concentrated nature of the meatpacking industry also 
creates the opportunity for market manipulation. In fact, serious 
concerns have been raised about market manipulation in the beef 
industry, owing to the substantial and ongoing gulf between meatpacker 
profits and rancher profits.
  I recently sent a letter to the chairman of the Senate Judiciary 
Committee requesting that the committee hold an oversight hearing into 
potential anticompetitive behavior and antitrust violations of the 
meatpacking sector. This followed on my letter to the Attorney General, 
urging the Justice Department to disclose the results of its 
investigation into the meatpacking industry, and my request to the 
Senate Agriculture Committee to hold a hearing examining the challenges 
livestock producers have been facing.
  I will continue to work to make sure any anticompetitive behavior in 
the beef-packing industry is addressed.
  I will continue to support efforts to increase competition in the 
meatpacking industry, like my legislation to support small meatpackers, 
the Strengthening Local Processing Act. I introduced this legislation 
in February, along with Senator Merkley, to help strengthen and 
diversify national meat processing capacity by providing new resources 
for smaller, more local meat processing operations.
  As I said, more than 80 percent of the beef-packing industry in this 
country is controlled by just four companies.
  Encouraging more companies to get into this marketplace and 
encouraging small meatpackers to expand will dilute the power of these 
four companies and create more competition for ranchers' cattle, which 
will lead to higher prices for ranchers--higher prices for ranchers--
when they bring their cattle to the market.
  Plus, spreading out and expanding our Nation's meat processing 
capacity will make our Nation's meat supply less vulnerable to 
interruptions in situations like the pandemic or other natural 
disasters or the JBS ransomware attack.
  South Dakota cattle producers work hard every day to deliver top-
quality beef to our Nation and to the world. I am proud to represent 
them here in the Senate, and I will continue to fight to enhance 
competition in the meatpacking industry so that ranchers and all 
livestock producers can receive a competitive price for their 
livestock.
  I yield the floor.
  I suggest the absence of a quorum.
  The ACTING PRESIDENT pro tempore. The clerk will call the roll.
  The senior assistant legislative clerk proceeded to call the roll.
  Mr. CORNYN. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.