Deluzio Raises Alarm on Consolidation in Meat Packing Industry, Negative Impacts on Independent Farmers

CARNEGIE, PA — Congressman Chris Deluzio (PA-17) recently sent a letter to Secretary of Agriculture Tom Vilsack to raise the alarm on the concerning impacts that consolidation in the meat packing and poultry processing industries have on independent farmers, including many of his constituents in Western Pennsylvania. This letter followed comments shared by constituent farmers with the Congressman at a Beaver/Lawrence Pennsylvania Farm Bureau roundtable. 

The Department of Agriculture’s March 2024 Packers and Stockyards Division: Annual Report 2021 & 2022 finds that the four-firm concentration ratios in the U.S. meat packing industry have remained between 65 to 68 percent of total dollar value purchases for the past decade. Independent research puts this figure even higher, with some finding CR4 ratios of up to 85 percent in beef processing and 60 percent in poultry. This high level of consolidation drives up food costs for consumers by allowing dominant corporations to inflate prices while also granting processors increased buying power, making it more difficult for independent farmers to remain in business.

Congressman Deluzio's letter reads, “I am concerned that Pennsylvania farmers—and others—may be experiencing violations of the Packers and Stockyards Act (P&SA) by these large processing corporations. These livestock producers told my team and me they have experienced increased wait times for livestock intake and lower compensation rates when compared to larger competitors, both of which could constitute undue preference illegal under the P&SA. 

“I commend the Biden-Harris administration’s efforts to promote competition in this industry, look forward to the results of the proposed rule on Fair and Competitive Livestock and Poultry Markets, and encourage your Department to continue your collaboration with the Department of Justice’s Antitrust Division to investigate and prosecute violations of the P&SA. 

“Accordingly, I respectfully request to be informed of actions the Department of Agriculture are currently taking to hold these large meat packing processors accountable.” 

The full letter is available here. 

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