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National & World Ag News Headlines |
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NFU Meets with DOJ on Smithfield Acquisition
USAgNet - 10/25/2006
National Farmers Union reiterated its opposition to the Smithfield-Premium Standard Farms merger directly to officials at the
U.S. Department of Justice. In a meeting with DOJ officials, NFU and representatives from other organizations expressed
concerns about the impact the proposed acquisition will have on independent hog producers, processing facility employees and
consumers. Last month, Smithfield Foods, Inc., announced their intent to purchase Premium Standard Farms; consolidating the
two largest hog producers in the U.S.
Upon learning of the acquisition, NFU immediately called upon U.S. Attorney General Alberto Gonzales to conduct an
in-depth investigation and analysis of the proposed deal. NFU later built a coalition of like-minded organizations that have been
working together to stop the transaction from going forward.
Department of Justice officials are in the process of reviewing the proposed merger and listened to the concerns of NFU and
the other organizations at the meeting. NFU President Tom Buis said he was pleased Justice Officials agreed to meet with
concerned interests.
"We believe this acquisition will result in the solidification of alliances that will exacerbate concentration in not only livestock
processing, but also in production," Buis said. "This could lead to an inordinate and excessive control of livestock and influence
on markets. It could also lead to manipulation of consumer retail prices for pork and beef."
A late September NFU-organized letter gained the support of fifteen organizations that wrote Gonzales requesting an
investigation.
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