Feingold on 'Massive Mergers' in Agriculture
April 20, 1999

Sen. Russell Feingold (D-WI) says the speed of "massive mergers" in recent years "can make your head spin."  He wants Congress and the Clinton Administration to assess "the real life marketplace consequences of these mergers for producers and consumers."

USDA data show that the grains processing, livestock slaughter and retail industries "are virtually controlled by a small number of companies," says Feingold.  "When Cargill, the world's largest grain company, announced plans to merge with Continental Grain, the world's second largest grain company, red flags were immediately raised.  This merger will put the bulk of the world's grain supply in the hands of only a few people."

He said he was especially concerned about the "well being and success of the dairy industry" that "plays a vital role in the state's (Wisconsin's) economy."

Concentration among producers, processors and marketers of dairy products "is becoming a problem in the dairy industry."

Although low commodity prices aren't solely the fault of mergers, "it is important that the Department of Justice look at potential antitrust problems in this industry.  And we in Congress should have a hard look at the antitrust laws to make sure they can effectively deal with the problems of concentration we are now seeing," he added.