WASHINGTON, D.C. — In a move aimed at supporting small poultry and livestock producers, Senator John Fetterman has endorsed new rules proposed by the U.S. Department of Agriculture (USDA). These rules, introduced under the authority of the Packers & Stockyards Act (PSA), aim to curb the overwhelming influence of large corporations in the industry.
Senator Fetterman expressed strong support for the “Fair and Competitive Livestock and Poultry Markets” and “Poultry Grower Payment Systems and Capital Improvement Systems” rules. “Our livestock and poultry markets have become so monopolistic that a small handful of corporations control nearly everything—from how your chicken is raised to how much it costs to put it on your dinner table,” he stated. He praised President Biden’s efforts to dismantle monopolistic control in corporate agriculture and emphasized that these rules would give small producers a fair chance to compete.
The PSA, enacted in 1921, was designed to ensure fair competition and integrity in livestock, meat, and poultry markets. It was a response to the exploitative practices of the “Big Five” meat packers of that era. The Act prohibits predatory practices by meatpackers and live poultry dealers to maintain market integrity and support economic stability for producers.
However, over a century later, the poultry industry remains dominated by a few major corporations. These companies control nearly every aspect of production, from feed to processing, making it difficult for small producers to compete. The new USDA rules aim to change this by clearly defining what constitutes unlawful competitive injury and unfair practices.
The National Chicken Council, representing the interests of Big Poultry, opposes these rules. They argue that the regulations promote an anti-business agenda and could increase chicken prices. Nevertheless, the USDA’s proposed rules focus on fairer competition and transparency. They require poultry companies to document fair comparisons between growers and address the inequities of the “tournament system,” which unfairly pits producers against each other by comparing their performance based on inputs controlled by the companies.
In his letter to the USDA, Senator Fetterman highlighted the unfairness of the current system. “I can think of no clearer example of an ‘unfair’ practice in the poultry industry than pitting growers in a regional market against each other,” he wrote. “Similarly, I can think of no clearer ‘deceptive’ practice than telling growers they will receive one price, then paying them another.”
The proposed rules promise to create a more level playing field for small producers, allowing them to compete more fairly with large corporations. This move is seen as a significant step towards restoring competition and fairness in the poultry and livestock markets, benefitting both producers and consumers.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.