[OKC] FW: Daily Kos: Sick of Corporate Control of the Food Supply?
Harlan Hentges
harlan at organiclawyers.com
Tue Dec 29 08:28:17 PST 2009
Anyone for a road trip to Fort Collins in August?
August 26, 2010 - Fort Collins, Colorado
Livestock Industry
This workshop will focus on beef, hog and other animal sectors. Topics may
include enforcement of the Packers and Stockyards Act and concentration.
<http://www.dailykos.com/storyonly/2009/12/22/818219/-Sick-of-Corporate-Cont
rol-of-the-Food-Supply> Sick of Corporate Control of the Food Supply?
by <http://jill-richardson.dailykos.com> Jill Richardson
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Tue Dec 22, 2009 at 07:04:07 PM PST
An awful lot of problems are traceable to consolidation in agriculture/food.
High prices, lack of availability of local food (particularly meat), and
food safety problems are just three of them. Fortunately, the U.S.
government is actually DOING SOMETHING about this. They will first take
public comments on the subject, and then hold a number of workshops around
the country. This diary is about both, but it is mostly intended to help you
send in comments.
Email your comments to agriculturalworkshops at usdoj.gov BY DECEMBER 31.
Read below for more info... including the dates, times, and locations of the
workshops, some talking points for your own comments, and the talking points
Big Ag plans to use.
. <http://Jill-Richardson.dailykos.com/> Jill Richardson's diary ::
::
.
The DOJ is looking into consolidation in agriculture. They are already
<http://www.lavidalocavore.org/diary/2874/monsanto-under-fire-for-anticompet
itive-behavior> investigating Monsanto but they are also doing a number of
workshops ("to explore competition issues affecting the agricultural sector
in the 21st century and the appropriate role for antitrust and regulatory
enforcement in that industry") and taking public comments on the subject.
Slow Food USA just put up an
<http://www.slowfoodusa.org/index.php/slow_food/blog_post/do_corporations_ha
ve_too_much_control_over_our_food_supply/> action alert that says:
Maybe you've noticed prices rising at the supermarket even while most big
food companies made record profits this year;
Maybe you are a farmer who has trouble getting your meat to market because
there are no small-scale processing facilities in your region;
Maybe you're concerned about food safety and the spread of bacteria like E.
coli-which happens much faster when meat and vegetables are processed in big
centralized locations;
Maybe your local farm has gone out of business because it couldn't compete
with the prices set by industrial farms and consolidated buyers.
And you probably know consumers having trouble finding good food at
affordable prices, as well as farmers having trouble getting good food into
mainstream markets. Please reach out to them today: the Department of
Justice needs to hear their stories.
>From a sustainable food & food justice perspective, the problems in our food
system are a bit like a chicken and egg dilemma. Huge, powerful corporations
are producing unhealthy, unsustainable food (which is distributed in an
unjust way) - often treating the workers who make the food very unfairly as
well - and yet it's all legal. Or their practices are illegal but the law is
not adequately enforced. So the solution is to change the laws or have the
laws enforced - except the same powerful interests control quite a bit of
government via lobbying and campaign donations, etc. So where do you start?
Well, one answer is to reduce the power of these corporations. And
fortunately, we DO have laws on the books saying that companies cannot
engage in anti-competitive practices. And we have an Obama DOJ that is
interested in looking into this. Better yet, Congress need not be involved.
Here's a list of the Dept of Justice's workshops:
Dates, Locations, and Topics
March 12, 2010 - Ankeny, Iowa
Issues of Concern to Farmers
Introduction to the workshops series with a focus on the issues facing crop
farmers. Discussion topics may include seed technology, vertical
integration, market transparency and buyer power.
May 21, 2010 - Normal, Alabama
Poultry Industry
Discussion topics may include production contracts in the poultry industry,
concentration and buyer power.
June 7, 2010 - Madison, Wisconsin
Dairy Industry
Discussion topics may include concentration, marketplace transparency and
vertical integration in the dairy industry.
August 26, 2010 - Fort Collins, Colorado
Livestock Industry
This workshop will focus on beef, hog and other animal sectors. Topics may
include enforcement of the Packers and Stockyards Act and concentration.
December 8, 2010 - Washington, D.C.
Margins
This workshop will look at the discrepancies between the prices received by
farmers and the prices paid by consumers. As a concluding event, discussions
from previous workshops will be incorporated into the analysis of
agriculture markets nationally.
For full details on the workshops, see
<http://www.justice.gov/atr/public/speeches/251858.htm> the DOJ's website.
There are two types of consolidation - horizontal and vertical. Horizontal
consolidation means you have tons and tons of market share selling the same
product. For example, Monsanto buys up many smaller seed companies to expand
horizontally. Vertical consolidation means you expand into different stages
of a product's development. For example, Tyson breeds baby chicks and owns
them all the way until they go to the grocery store. From the breeder, the
chicks go to farmers who have contracts with Tyson (the farmers never
officially own the chicks, even while raising them). Tyson picks up the
chickens from farmers when they are full grown, slaughters them, and sells
them. I believe they also provide the farmers with the feed and medications
for the chickens.
Each type of consolidation - horizontal and vertical - reduces the amount of
competition in an industry. While it is a GOOD thing for innovative
companies to prosper, once a company because so powerful, it no longer needs
to innovate to stay in charge. Furthermore, without much competition (or
even the possibility of future competition), the corporation can jack up the
prices.
Sometimes large, powerful corporations use their size to unfairly oust
competition from smaller companies. A great example is when Wal-Mart comes
into a town and builds three SuperCenters even though the town really only
can support two. Then, after all of the Mom n Pop businesses close because
they can't compete with Wal-Mart, Wal-Mart shuts down one of the
SuperCenters. Another example (and this IS illegal) is when a company sells
their products below the cost of production. A large company may have deep
pockets and the ability to do this long enough to put their smaller
competition out of business. Or click here for
<http://www.lavidalocavore.org/diary/2874/monsanto-under-fire-for-anticompet
itive-behavior> some real life examples that Monsanto is in trouble for.
Obviously, a monopoly has the ability to jack up prices because there are no
other companies around to compete with lower prices. However, when a market
is consolidated (the largest 4 companies control over 40% of the market),
they can raise prices without officially colluding. You can find out how
consolidated various U.S. agricultural industries are from
<http://nfu.org/issues/economic-policy/resources/heffernan-report> the
Heffernan report. Note that the most recent report is quite out of date
because we've had some very significant mergers in the past 2 years (JBS
Swift merged with Smithfield, and then went after Pilgrim's Pride).
Here are some ways that you might be noticing the effects of consolidation
in your life:
. It's harder and harder to find healthy, locally produced foods in your
community -- especially if you live in a low-income area, there might not be
a supermarket for miles.
. Prices are rising at the supermarket, but you've heard that farmers are
struggling -- and big food companies have made record profits this year.
. You feel like you don't have much choice about the food you eat --
maybe the produce selection is bad, or you don't like that everything seems
to be made with corn products.
. It's hard for small food producers and processors to find markets for
their products -- and it's hard for consumers to find products made by small
producers.
. Food seems less safe. You've read that the outbreak and spread of
bacteria like E. coli happens much faster when meat and vegetables are
processed in big centralized locations.
. Local farms are going out of business, because small farmers can't
compete with prices set by industrial farms and consolidated buyers.
. There aren't many decent jobs in food and farming anymore -- there's a
real lack of opportunities for both urban and rural youth who are interested
in growing and preparing food.
. What's in your food, anyway? And why aren't there decent labels telling
you where it grew, what chemicals are on it, and if it's genetically
modified?
. There is a "revolving door" of personnel between corporate lobbyists
and government regulators. No wonder corporations aren't held to strict
standards.
. Many rural communities have become ghost towns. The farmers that have
survived often find themselves entirely at the mercy of corporations who own
all parts of the supply chain (called "vertical integration") and can set
prices in such a way to drive competitors out of business.
. Just one company controls the majority of seeds in the US, and
regularly threatens farmers who don't buy its seeds.
. Cows, chickens, and pigs are being raised in squalid conditions on huge
industrial feedlots and pumped full of unnecessary antibiotics, which is
unhealthy for them and potentially unsafe for the people eating them.
. The food you can afford is bad for you; healthy food is expensive.
. Food is grown and raised in ways that are terrible for the environment,
with methods that pollute the water, poison the soil, and threaten our
long-term food security.
. A lot of food from the store just doesn't taste very good, which raises
questions about where it's come from and how it's been treated.
So, what do you say in your comments to the DOJ? You can see
<http://www.usfoodcrisisgroup.org/node/22> sample letters if you'd like, or
you can use this template:
State who you are -- parent, teacher, farmer, cook, gardener, community
leader, eater... whatever feels relevant.
State that you are concerned about the consolidation of corporate power in
the food and agriculture sector.
State your primary reasons why. Some examples to get you started (you can
find more food for thought at <http://www.usfoodcrisis%20group.org>
www.usfoodcrisisgroup.org):
* you've noticed prices rising at the supermarket and don't feel like you
can do anything about it (a lot of big food companies have made record
profits this year -- even as consumers are paying more for food.);
* you're concerned about your family's safety (outbreak and spread of
bacteria like E. coli happens much faster when meat and vegetables are
processed in big centralized locations.);
* local farms are going out of business (many small farmers can't compete
with prices set by industrial farms and consolidated buyers.).
This section can be short and informal; don't worry about spelling out the
connections too precisely. The important thing is to express from your own
experience what most concerns you or how you've been affected by the effects
of corporate consolidation in the food industry. Be honest and speak from
your heart.
Thank them for the opportunity to submit comments.
Sign your name and address
For an absolute plethora of information on the subject of antitrust work and
market consolidation, check out the
<http://www.usfoodcrisisgroup.org/node/6> U.S. Food Crisis Working Group's
antitrust documents.
Here's <http://www.truthabouttrade.org/take-action/dojusda-workshop> what
the biotech lobby plans to say (to defend the status quo):
Private investment and innovation in seed genetics and biotechnology gives
independent farmers access to tools that allow us to be more competitive on
the local, national and international level.
There is more choice in terms of seeds and seed traits available in the
marketplace than ever before. This "freedom to choose" includes products
from multinational companies as well as some 200 corn and soybean
independent seed companies.
Technology is the reason there are so many quality options in the
marketplace. Every year, choices are made from the variety of available seed
products from the numerous companies offering the products. Access to this
technology has had - and will continue to have - a positive impact on crop
production.
Seed quality, which has improved greatly due to innovation and technological
advancements, improves crop productivity and quality. Technology has
increased per-acre production, while using fewer resources to generate that
harvest. It has helped farmers more efficiently utilize and preserve natural
resources like water and energy.
Agricultural innovation is needed to increase world food production. With
the United Nations predicting that our planet must double food production to
feed an anticipated population of 9.3 billion people by 2050, continued
innovation and technological advancements in the seed industry are vital in
ensuring that we meet these challenges.
Tags: <http://www.dailykos.com/tag/Recommended> Recommended,
<http://www.dailykos.com/tag/Consolidation> Consolidation,
<http://www.dailykos.com/tag/DOJ> DOJ,
<http://www.dailykos.com/tag/Antitrust> Antitrust,
<http://www.dailykos.com/tag/Food> Food,
<http://www.dailykos.com/tag/Agriculture> Agriculture,
<http://www.dailykos.com/tag/Competition> Competition (
<http://www.dailykos.com/tag> all tags) ::
<http://www.dailykos.com/tag_version/2009/12/22/215824/05> Previous Tag
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