[Congressional Record (Bound Edition), Volume 149 (2003), Part 18]
[Senate]
[Page 24567]
[From the U.S. Government Publishing Office, www.gpo.gov]




                       AGRICULTURAL CONCENTRATION

  Mr. FEINGOLD. Mr. President, increased consolidation and market 
concentration are, without question, prevalent concerns throughout the 
Nation. In particular, I am deeply disappointed to learn that the pork 
division of Farmland Foods has been sold to Smithfield Foods in a 
bankruptcy auction. Acquisition of Farmland Foods by either of the 
auction's bidders, Smithfield Foods and Cargill, has significant 
potential to lessen competition, harming both farmers and consumers. In 
this and many other cases, the Department of Justice has looked the 
other way in enforcing antitrust law, failing to maintain competitive 
markets.
  As I travel around my home State of Wisconsin, agricultural 
concentration is raised by farmers and growers on a consistent basis. I 
am greatly concerned that industry trends toward consolidation and 
concentration are causing great disruption, and sometimes ruin, for our 
Nation's small- and medium-sized producers. It is my understanding that 
this acquisition would give Smithfield control of a significant portion 
of the pork processing industry in the U.S. market access for small and 
independent pork producers is already inadequate, and this merger will 
only exacerbate the problems of discrimination, a lack of negotiating 
power, and the low prices that farmers face.
  While this acquisition would reduce competition among purchasers of 
live hogs, I am also concerned about the lack of benefit to consumers. 
At the other end of the food marketing chain, consumers are not seeing 
any decreases in the price they pay at the grocery store for these 
products. Having fewer competitors providing pork products to American 
consumers is unlikely to result in lower prices in the supermarket.
  I am disappointed that the Department of Justice did not choose to 
enforce antitrust laws regarding the acquisition of Farmland Foods by 
either Cargill or Smithfield Foods. The lack of action by the 
Department does a disservice to the hard working men and women in the 
agricultural industry and only functions to increase the mounting 
obstacles to garner a fair price for their product.

                          ____________________