USDA to Change Packer/Processor Marketing Pacts
Ag secretary to initiate process to develop new rules.
Compiled by staff
Published: May 28, 2010
Agriculture Secretary Tom Vilsack, at a news conference this week, said the U.S. Department of Agriculture plans to initiate rulemaking next month to change how marketing arrangements between packers/processors and producers are written.
Vilsack suggested that the main parts of the rule would essentially prevent meat packers from buying exclusively from or favoring large cattle feeders and provide contract growers increased leverage in negotiating contracts with chicken integrators.
The proposed rule is required by the 2008 farm bill, USDA said.
Meanwhile, the U.S. Senate Judiciary Committee has scheduled a hearing June 9 to get clarification from the U.S. Department of Justice and Federal Trade Commission on the increased emphasis on agricultural competition issues, including Justice's effort to break up Dean Foods Co.'s legal acquisition in April 2009 of the consumer products division of Foremost Farms USA.
The committee has called Assistant Attorney General Christine Varney, who directs Justice's antitrust division, and FTC chair Jon Leibowitz as the only witnesses.
Source: Feedstuffs
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Tagged: farm, usda, farm bill, legal
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