Grassley Opens Next Round Against Concentration

July 3, 2001

Sen. Chuck Grassley (R-IA) reiterated concerns about the merger of Tyson Foods, Inc. and IBP Inc. in a letter to the government's top antitrust official. Grassley sent his letter to the Justice Department's new assistant attorney general even though the department has indicated that it won't reopen its anti-trust review in this case following the recent court ruling which prompted merger talks between Tyson and IBP to continue.

"I remain seriously concerned about the impact of this merger on the farm community," Grassley said. "A combined IBP-Tyson presence will limit the ability of family farmers and independent producers to obtain fair prices for their products, and it will negatively affect product choice and the prices consumers pay at the retail meat counter. If this merger actually happens, I want the Justice Department to carefully monitor the merger and take any appropriate action if there are unintended consequences."

Last month, Grassley introduced legislation — the Agriculture Competition Enhancement Act — to change the merger review process of the Justice Department as it pertains to agribusiness and enhance the Agriculture Department's ability to address anti-competitive activity in the industry. Grassley first introduced this measure last year. It was not acted on during the last Congress. Grassley said he put the bill back on the table to jump-start a debate on how to respond to the concentration issue.

"I hope lawmakers can work constructively and achieve a bipartisan consensus on legislation this year. I'm committed to making sure family farmers have fair access to the marketplace. A level playing field is the best way to keep our economy strong, the agricultural community vibrant and competitive, and consumers satisfied," he said.