The U.S. Department of Agriculture (USDA) and U.S. Department of Justice (DOJ) have announced a series of public workshops “to explore the competition issues affecting the agricultural sector in the 21st century and the appropriate role for antitrust and regulatory enforcement in that sector.” Organized in response to “concerns about changes in the agricultural marketplace, including increasing processor concentration in some commodities,” these meetings will focus on “the dynamics of competition in agricultural markets, including, among other issues, buyer power (also known as monopsony) and vertical integration.”

The workshops will also address (i) “the impact of agricultural concentration on food costs”; (ii) “the effect of agricultural regulatory status and other applicable laws and programs on competition”; (iii) “issues relating to patent and intellectual property affecting agricultural marketing and production”; and (iv) “market practices such as price spreads, forward contracts, packer ownership of livestock before slaughter, market transparency, and increasing retailer concentration.” USDA and DOJ are also soliciting comments from lawyers, economists, agribusinesses, consumer groups, academics, agricultural cooperatives, and other interested parties “on the application of antitrust laws to monopsony and vertical integration in the agricultural sector, including the scope, functionality and limits of current or potential rules.” Respondents should provide comments as soon as possible, but no later than December 31, 2009. See Federal Register, August 27, 2009.

About The Author

For decades, manufacturers, distributors and retailers at every link in the food chain have come to Shook, Hardy & Bacon to partner with a legal team that understands the issues they face in today's evolving food production industry. Shook attorneys work with some of the world's largest food, beverage and agribusiness companies to establish preventative measures, conduct internal audits, develop public relations strategies, and advance tort reform initiatives.

Close