Reaction to DOJ decision on Tyson, Hillshire Deal

Following the announcement by the U.S. Justice Department regarding the deal between Tyson Foods and Hillshire brands, Iowa Senator Chuck Grassley said he appreciated the DOJ’s work.  On the other side of the coin, the National Farmers Union stated the Justice Department had “turned it’s back” on American farmers.  The Justice Department ruled Tyson must sell its sow purchasing business, Heinold Hog Markets, before the acquisition of Hillshire could proceed. The merger without conditions would have allowed the new company to control more than one-third of the slaughter sow purchasing market.  Grassley stated ”We’ve seen in previous acquisitions the serious difficulties that can arise when monopsony concerns and the impact of concentration on farmers as consumers are not taken seriously.”     

National Farmers Union president Roger Johnson stated   “nearly every merger request they file is approved by the Department of Justice.  As a result, the meat industry grows more powerful by the day and the family farmer continues to get squeezed.”  . Johnson said the top four meat packers already control 80 percent of the market and now that number has just gone up.

Source:  NAFB News