Fair Play In The Beef Industry: USDA’s Antitrust Efforts Gain Traction

The U.S. Department of Agriculture (USDA) has taken new steps to promote fair and competitive markets in the concentrated beef industry, earning praise from Farmers Union leaders. The USDA released a report highlighting anticompetitive pricing practices in the beef market and announced a new rulemaking effort aimed at improving price transparency and fairness for cattle producers.

Mark Watne, President of the North Dakota Farmers Union, welcomed the USDA’s initiative, emphasizing the need for transparency in cattle pricing. “With just four packers controlling more than 80% of the beef packing industry, we have to take steps to ensure markets are fair and transparent,” Watne said.

The concentration of power in the hands of a few large beef packers has long been a concern for cattle producers. Farmers and ranchers have argued that this dominance stifles competition and depresses prices paid to producers, while consumers continue to pay higher prices for beef. The USDA’s efforts are seen as an important step toward addressing these imbalances.

Watne also referenced the stalled Cattle Price Discovery and Transparency Act, which the Senate Agriculture Committee advanced in 2022 but failed to bring to a vote. The bill sought to protect the cash market and enhance price transparency in cattle markets. “We urge Congress to act now to protect the cash market and the price transparency it provides,” Watne added. He applauded the USDA for continuing the conversation and exploring ways to ensure fair marketing arrangements for producers.

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In addition to supporting price transparency, Farmers Union leaders are calling for broader livestock industry reforms. The North Dakota Farmers Union’s Livestock Committee, in 2020, presented a series of recommendations, including reinstating mandatory country-of-origin labeling and increasing local and regional slaughter capacity. These reforms, they argue, are essential to creating a more equitable market for cattle producers.