Skip to content

Menu

LexBlog, Inc. logo
CommunitySub-MenuPublishersChannelsProductsSub-MenuBlog ProBlog PlusBlog PremierMicrositeSyndication PortalsAboutContactResourcesSubscribeSupport
Join
Search
Close

DOJ and USDA Agree to Work Together on Enforcement of Meat and Poultry Processing Sector

By Emily Lyons, Mark Tobey & Julia Banegas on January 13, 2022
Email this postTweet this postLike this postShare this post on LinkedIn

The meat processing sector has been in the crosshairs of the federal government over that last several years due to increased consumer prices for meat products and complaints from farmers and ranchers. These complaints have rallied the Biden Administration to review and consider addressing these issues which are perceived to be caused by consolidation among meatpackers. Specifically, the Department of Justice (DOJ) and the U.S. Department of Agriculture (USDA) announced on January 3, 2022 their shared principles and commitments to use the Packers and Stockyards Act (P&S Act) and federal competition laws to address complaints regarding alleged anti-competitive behavior within the meatpacking industry. This announcement is in response to  President Biden’s July 9, 2021 Executive Order on Promoting Competition in the American Economy, particularly in the meat and poultry processing sector, as well as USDA’s announcement in July 2021 to begin work to strengthen enforcement of the Packers and Stockyards Act (P&S Act).

While USDA and DOJ have enforced the P&S Act since its passage in 1921, this marks the first time in decades that DOJ and USDA have announced a joint focus on enforcing the Act against meatpackers. DOJ and USDA issued the following principles and commitments regarding the livestock industry and enforcement of the P&S Act:

  1. Farmers, ranchers, and other producers and growers deserve the benefits of free and fair competition. The Justice Department and USDA therefore are prioritizing matters impacting competition in agriculture.

  2. The agencies will jointly develop within 30 days a centralized, accessible process for farmers, ranchers, and other producers and growers to submit complaints about potential violations of the antitrust laws and the Packers and Stockyards Act. The agencies will protect the confidentiality of the complainants, if they so request, to the fullest extent possible under the law and also commit to supporting the strongest possible whistleblower protections.

  3. The agencies will work together to promote effective information sharing and case cooperation, including processes the agencies will follow to efficiently address a complaint.

  4. Both agencies commit to vigorously enforce the laws that protect farmers, ranchers, and other producers and growers from unfair, deceptive, discriminatory, and anticompetitive practices. As appropriate, USDA will make reports or refer potential violations of the Packers and Stockyards Act to the Justice Department to better enable its Antitrust Division to pursue meritorious competition-related cases and to allow the agencies to collaborate on issues of mutual interest. Additionally, The Justice Department and USDA will work together to identify and highlight areas where Congress can help modernize these toolkits.

These principles and commitments followed a Roundtable on Promoting Competition and Reducing Prices in the Meatpacking Industry hosted by the White House. The White House outlined the following objectives: increased independent processing capacity, increased support for workers in the independent processor industry, and increased transparency. At the event, Secretary of Agriculture Tom Vilsack tied this effort to several rulemakings that USDA has previously previewed, but has not issued regulatory text to date:

  • USDA is in the process of developing three proposed rules under the Packers and Stockyards Act (PSA) to better protect poultry and hog farmers and cattle ranchers from unfair and anti-competitive practices in meat markets.
  • USDA plans to issue new regulations governing “Product of USA” claims for meat and poultry products.

These developments highlight the Executive Branch’s increased attention to the meat and poultry processing sector. Industry members are encouraged to reach out to their Husch Blackwell attorney or a member of the Food & Agribusiness team, to ensure they are in compliance with federal competition laws and the P&S Act in order to be prepared for ramped-up federal enforcement in the sector.

Photo of Emily Lyons Emily Lyons

Emily grew up on a northern Illinois dairy farm, and now helps clients bridge the gap from farm to fork. She guides clients on complex regulatory issues as they bring dairy products, beverages, fruits and vegetables, processed foods and other agricultural goods to…

Emily grew up on a northern Illinois dairy farm, and now helps clients bridge the gap from farm to fork. She guides clients on complex regulatory issues as they bring dairy products, beverages, fruits and vegetables, processed foods and other agricultural goods to market. At the intersection of agriculture, food and environment, Emily handles compliance matters such as labeling, marketing, permitting and agency inquiries including the Food Safety Modernization Act, Pasteurized Milk Ordinance, USDA National Organic Program and bioengineered food disclosure standard, Generally Recognized as Safe status for food additives and food contact substances, and the Safe Drinking Water and Toxic Enforcement Act of 1986 (Proposition 65).

Read more about Emily LyonsEmail Emily's Twitter Profile
Show more Show less
Photo of Mark Tobey Mark Tobey

Mark counsels food and agribusiness clients on antitrust and competition issues, helping them mitigate risk in an increasingly complex business and regulatory environment.

Read more about Mark TobeyEmail
Photo of Julia Banegas Julia Banegas

Julia enjoys helping clients move business forward in highly regulated sectors. With her interest in the heavily regulated areas of government contracts and international trade, Julia helps clients conduct business smoothly across the nation, and throughout the world.

Read more about Julia BanegasEmail
  • Posted in:
    Food, Drug & Agriculture
  • Blog:
    Food & Ag Law Insights
  • Organization:
    Husch Blackwell LLP
  • Article: View Original Source

LexBlog, Inc. logo
Facebook LinkedIn Twitter RSS
Real Lawyers
99 Park Row
  • About LexBlog
  • Careers
  • Press
  • Contact LexBlog
  • Privacy Policy
  • Editorial Policy
  • Disclaimer
  • Terms of Service
  • RSS Terms of Service
  • Products
  • Blog Pro
  • Blog Plus
  • Blog Premier
  • Microsite
  • Syndication Portals
  • LexBlog Community
  • 1-800-913-0988
  • Submit a Request
  • Support Center
  • System Status
  • Resource Center

New to the Network

  • Boston ERISA & Insurance Litigation Blog
  • Stridon News and Insights
  • Taft Class Action & Consumer Insights
  • Labor and Employment Law Insights
  • Age of Disruption
Copyright © 2022, LexBlog, Inc. All Rights Reserved.
Law blog design & platform by LexBlog LexBlog Logo