Packer Ban

Senator Chuck Grassley (R-IA) has introduced S. 305 (pdf) “To amend the Packers and Stockyards Act, 1921 to make it unlawful for a packer to own, feed, or control livestock intended for slaughter.” Senators Dorgan (D-ND), Enzi (R-WY), Harkin (D-IA) and McCaskill (D-MO) have co-sponsored the bill.

Allowing meat packers to own the animals they slaughter, reduces competition for livestock raised by independent cattle producers. The deadly combination of high market concentration and the increased use of captive supplies has meant lower prices, a smaller share of the retail dollar and shrinking markets for cattle producers.

Meat packers such as Tyson, Cargill and Smithfield Foods use packer-owned livestock as a major tool for exerting unfair market power over farmers, ranchers and feeders. This practice fosters industrial livestock production and freezes independent farmers out of the market.

Packer-owned livestock has been proven to artificially lower farm gate prices to farmers and ranchers while consumer food prices continue to rise. By prohibiting direct ownership of livestock by major meatpackers, a packer ban addresses significant problems of captive supply which packers use to manipulate the market.

Read WORC’s factsheet (pdf 82k) for more information on packer ownership of livestock.