Open Markets Institute, Food & Water Watch, and the Organization for Competitive Markets Submit Letter to DOJ Opposing National Beef Acquisition of Iowa Premium
The Open Markets Institute, Food & Water Watch, and the Organization for Competitive Markets submitted a letter to the Justice Department supporting a letter by The Ranchers-Cattlemen Action Legal Fund United Stockgrowers of America (“R-CALF USA”) on March 28, 2019, regarding the proposed acquisition of Iowa Premium, LLC, (“Iowa Premium”) by National Beef Packing Company, LLC (“National Beef”). We support R-CALF’s call that the Justice Department block this proposed acquisition.
National Beef’s acquisition of Iowa Premium raises several major concerns, most notably, reducing competition for fed-cattle in the Upper Midwest and eliminating a disruptive maverick firm that resisted fed-cattle purchasing and pricing norms exhibited by the dominant “Big Four” beef packers. The merger threatens already vulnerable smaller feedlots that are dependent on the cash market. It also gives the Big Four packers more ability to manipulate a critical spot market and thus fed-cattle prices nationwide. R-CALF and others have recently filed a lawsuit alleging the Big Four have conspired to depress fed-cattle prices, and by eliminating a maverick firm the merger makes this problem worse.