THIS PAST FRIDAY, NOVEMBER 7, PRESIDENT TRUMP INSTRUCTED THE U.S. DEPARTMENT OF JUSTICE TO BEGIN AN INVESTIGATION INTO POSSIBLE ANTICOMPETITIVE PRACTICES BY THE MEATPACKING INDUSTRY. THIS IS A VERY POSITIVE STEP FOR AMERICAN CATTLEMEN AND FOR THE FOLKS WHO CONSUME OUR AMERICAN BEEF. I AM BOTH GRATEFUL FOR, BUT STRUCK BY, HOW LONG IT HAS TAKEN TO TAKE THIS SO OBVIOUSLY NEEDED ACTION.
“I have asked the DOJ to immediately begin an investigation into the Meat-Packing-Companies who are driving up the price of Beef through Illicit Collusion, Price Fixing, and Price Manipulation,” he wrote on social media at 3:39 pm Eastern. Some Republicans in Congress echoed those comments, citing an unresolved federal investigation of the industry launched during the previous Biden administration.
“We will always protect our American Ranchers, and they are being blamed for what is being done by Majority Foreign-Owned Meat Packers, who artificially inflate prices and jeopardize the security of our Nation’s food supply,” Trump said Friday. “Action must be taken immediately to protect Consumers, combat Illegal Monopolies, and ensure these Corporations are not criminally profiting at the expense of the American People. I am asking the DOJ to act expeditiously. Thank you for your attention to this matter!”
THE SIZE OF THE U.S. HERD HAS EBBED AND FLOWED ON A CYCLE OF ABOUT 10 YEARS SINCE WORLD WAR II. BUT IT IS NOW AT A LOWER LEVEL THAN IT HAS BEEN FOR 75 YEARS. THE ECONOMIC CYCLE HAS CEASED TO FUNCTION, AND I BELIEVE THAT THIS IS BECAUSE OF MARKET CONCENTRATION. FOUR HUGH PACKERS WHO OPERATE GLOBALLY CONTROL OVER 80 % OF THE BEEF MARKET IN THE USA.
A CHANGE IN COUNTRY OF ORIGIN LABELING IN 2015 WAS INCREDIBLY BENEFICIAL FOR THESE MULTINATIONAL BEEF IMPORTERS. BEFORE 2015, "PRODUCT OF THE USA" ON A BEEF LABEL MEANT THAT THE COW WAS BORN, RAISED, AND SLAUGHTERED IN ONE OF OUR 50 STATES. AFTER THAT RULE CHANGE, "PRODUCT OF THE USA" MEANT THAT SOME VALUE WAS ADDED IN THE UNITED STATES. THE ANIMAL COULD BE BORN, RAISED, AND SLAUGHTERED IN MANY OTHER COUNTRIES AROUND THE WORLD, BUT IF ANY VALUE WAS ADDED IN THIS COUNTRY, IT COULD LEGALLY BE LABELED AS "PRODUCT OF THE USA". ["ADDED VALUE" COULD JUST MEAN SLICING, GRINDING, OR REPACKING].
In response to President Trump announcement that he has asked the U.S. Department of Justice to immediately begin an investigation into possible anticompetitive practices by the meatpacking industry. R-CALF USA CEO Bill Bullard, head of the nation’s largest cattle association, issued the following statement in response to the president’s announcement:
“We greatly appreciate President Trump’s announcement that he’s directed the Department of Justice to investigate the beef supply chain to determine if there are any violations of our fair competition laws or antitrust laws. There has long been a disconnect between cattle prices and beef prices, and we believe this is evidence of market failure. We welcome this investigation to ensure that cattle producers receive competitive prices for their cattle, and that consumers pay prices set by a competitive market rather than a monopolistic one.”
WE AT WHITE OAK PASTURES ANXIOUSLY WATCHING THIS INVESTIGATION OF THIS DECADES-OLD SITUATION THAT DESPERATELY NEEDS FIXING.
WILL HARRIS
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