Minnesota Farmer's Union Applauds Lawsuit Against Consolidation of the Beef Markets

Minnesota's Attorney General's office, along with the United States Department of Justice, and 12 other attorney's general offices have filed a civil antitrust lawsuit against the Brazilian conglomerate JBS from purchasing the American beef packing company National Beef Packing Company.

"Earlier in the summer, Minnesota Farmers Union urged Minnesota Attorney General Lori Swanson to act on this proposed merger because of the devastating impact this merger would have on farmers and consumers," said Doug Peterson, Minnesota Farmers Union President. "Too much consolidation leads to price gouging of the farmer who actually raises the cattle, and rising beef costs to the consumer. I want to thank Attorney General Swanson, the Department of Justice, and all the other states that joined in this suit for their action in ensuring a fair price for cattle suppliers, and consumers."

According to the Minnesota Attorney General's office, the lawsuit claimed this deal would substantially lessen competition, and if this merger went through, three companies, JBS, Tyson and Cargill, would control over 80% of U.S fed cattle processing capacity. It also claims that these three companies would then have the market power to raise the prices that consumers pay, and lower the price that the farmers get who raise the cattle.

The lawsuit came out of a joint investigation among the U.S. Department of Justice and the Attorneys General of Minnesota, Colorado, Iowa, Kansas, Missouri, Montana, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Texas, and Wyoming.

Minnesota Farmers Union (www.mfu.org) is a nonprofit membership-based organization working to protect and enhance the economic interests and quality of life of family farmers and ranchers, as well as rural communities.