USDA Teams to Probe Pork Merger

April 12, 2000

USDA is sending "rapid response teams" to Iowa, Illinois and Wisconsin next week to find out if there have been any violations of law from the proposed acquisition of Farmland Foods, Inc., packing plant in Dubuque, IA, by Smithfield Foods, Inc. Hog producers are being urged to turn out and tell the teams how they think the acquisition will affect their operations.

"Increasing agricultural concentration troubles me," said Agriculture Secretary Dan Glickman. "We at USDA want to be particularly vigilant to ensure that all producers, especially small and medium sized producers, are treated fairly and that genuine competition prevails in the marketplace."

The teams will be in Epworth, IA, next Monday from 2 p.m. to 8 p.m., at the Farm Service Agency office, and the same day at the same time at the FSA office in West Union, IA. On Tuesday, teams will be at the FSA offices in Mount Carroll, IL, and Lancaster, WI, at the same times.

Team members will conduct "high priority, speedy investigations to prevent or minimize major competitive or financial harm caused by violations of the Packers and Stockyards Act.," USDA said. Just because the teams are going into the field to investigate the acquisition does not mean violations have occurred or will occur, the department said, only that the potential for violations exists.

Information obtained will be used to determine if violations have occurred, and it may be shared with other federal agencies. USDA notes that Smithfield has indicated that if it purchases the plant, slaughter operations there may be discontinued.

"I hope this deployment ... is a sign of further aggressive action to enforce" the act, said Sen. Tom Harkin (D-IA). "Smithfield’s acquisition of the Dubuque Farmland pork plant raises a lot of concerns and uncertainty. Pork producers in the region are now facing questions about where they will market their hogs. For the 1,350 employees at the plant, there is uncertainty about the security of their jobs and how they will fare under new ownership and management."