A group of bipartisan U.S. Senators have introduced legislation that would limit the ability of packers to own, feed, or control livestock, either through a subsidiary or an arrangement that gives the packer operational, managerial, or supervisory control prior to seven days before slaughter.
The proposed legislation is co-sponsored by Sen. Tom Harkin of Iowa, Chairman of the Committee on Agriculture, Nutrition and Forestry. "The livestock marketing system will become dysfunctional if the industry becomes overly vertically integrated," Harkin said. "We need some federal limits to how far packing and processing firms can go in controlling all phases of the livestock production and processing industry."
Hog packers would have 18 months to divest their direct ownership of hogs and packers of all other livestock would need to divest their ownership of livestock by 180 days. This legislation would not prohibit pricing methods involving contracts.
Source:
USAgNet, January 17, 2007