Bill to impose moratorium on large agribusiness mergers introduced

The increasing consolidation in the food industry has far-reaching implications, especially for consumers. The infant formula industry, for example, has reached an alarming level of corporate concentration with four companies now controlling nearly 90 percent of the infant formula market. A disruption in the supply of just one infant formula producer now presents a grave risk to infant health in the United States.

Consolidation also contributes to the widening gap in economic opportunity in the United States as dominant firms are likely to deliver profits to investors rather than to raise wages or benefits.

“Food system concentration has enabled corporations to steal farmers’ profits, price-gouge consumers, and force workers into hazardous, underpaid conditions,” said Farm Action Fund’s Policy Advocate Sarah Carden. “These abusive practices have become all too commonplace, threatening both our food and national security. This legislation puts an immediate stop to further consolidation, allowing us to build a more fair and resilient food and farm system.”

Among the U.S. Senators introducing the legislation is Sen. Jon Tester.  “Folks in Montana know that consolidation in our food systems is hurting rural America,” said the senator. “Whether it’s meatpacking or infant formula, a lack of competition in the marketplace leads to tighter margins for American producers, higher costs for consumers, and makes our country less safe when these multi-national corporations fail to perform. Capitalism works exceptionally well when there’s competition, and this bill will help put family ranchers and farmers back in the drivers’ seat by making our markets more competitive across the board.”

Bill Bullard, CEO, R-CALF USA, supports the bill, noting, “The ongoing concentration of our agriculture and food markets is allowing dominant agribusiness firms to exploit farmers and ranchers on one end of the supply chain and consumers on the other.”