Centralization

Today, a coalition of 82 farm, ranch, consumer, rural and faith-based groups sent a letter demanding that the U.S. Department of Justice extend its review of the proposed Tyson Foods (Tyson) takeover of Hillshire Brands, Co. (Hillshire). The proposed merger would join the largest U.S. meat and poultry company, Tyson, with the 11th largest meat company, Hillshire, and would substantially undermine competition in the pork processing and hog purchasing sectors, disadvantaging farmers and consumers and undermining rural communities. “Fewer buyers of hogs and sows result in a less competitive market for family farmers,” said Roger Johnson, president of National Farmers Union. “The rapid consolidation of market power in the hands of just a few pork processors resulted in the loss of more than 90 percent of all hog farms since 1980. Tyson’s takeover of Hillshire certainly warrants further investigation by the Department of Justice and should be stopped. It’s time for the Justice Department to enforce our anti-trust laws.” Tyson won a protracted and expensive bidding war to initiate the hostile takeover of Hillshire. The Justice Department reviews hostile takeovers on an accelerated 14-day timeline, rather than the typical 30-days to consider a more thorough merger review. The letter notes that the complexity of the proposed merger warrants a much more comprehensive review because of Tyson’s significant hog and sow purchasing and marketing and because the proposed merger would enable Tyson to undermine Hillshire’s sausage and lunchmeat rivals by disrupting their access to pork supplies.