U.S. plans rule to protect livestock farmers from company retaliation

Pilgrims Pride

26/09/2022 17:00

By Tom Polansek
       CHICAGO, Sept 26 (Reuters) - The U.S. Department of
Agriculture is proposing regulations to prevent meat companies
from retaliating against livestock and poultry farmers who speak
out on practices such as price-fixing, the agency said on
Monday.
    The USDA also said it would work with state attorneys
general to investigate anticompetitive practices in the
agricultural sector that contribute to inflation.
    The moves aim to increase competition in the highly
concentrated meat industry as part of a broader effort by the
Biden administration. 
    The White House intends to tout the plans on Monday at a
third meeting of President Joe Biden's competition council,
which was created in 2021.
    The USDA said its new rule would prohibit meat companies
from retaliating against farmers and ranchers who take part in
"lawful communications" and whistle blowing on price-fixing or
who participate in associations. It would also seek to protect
farmers who may be at a higher risk for mistreatment because of
their race, gender, sexuality or religion, the agency said.
    The rule would revise regulations under the Packers and
Stockyards Act, a century-old law meant to protect farmers from
unfair market practices.
    It would identify "unlawfully deceptive practices" that
violate the act, including those related to the formation and
termination of contracts between farmers and meat companies, the
USDA said.
    In May, the USDA proposed another rule that would require
poultry companies to be more transparent with contract chicken
growers. The rules aim to improve on previous USDA efforts to
protect farmers.
    In February, JBS SA  JBSS3.SA  agreed to pay $52.5 million
to settle litigation accusing meatpacking companies of
conspiring to limit supply in the U.S. beef market in order to
inflate prices and boost profits. Separately, executives who
worked for Pilgrim's Pride  PPC.O  and another poultry producer
were found not guilty of fixing prices in the poultry sector
this year. 
 (Reporting by Tom Polansek; Editing by Josie Kao)
 ((Thomas.Polansek@thomsonreuters.com; https://twitter.com/tpolansek))