Under the rules, farmers and ranchers would have more power to sue meat companies accused of treating suppliers unfairly. The regulations also would make it more difficult for cattle and hog buyers to undercut prices set by farmers and feedlot owners, and they would provide new protections for poultry farmers struggling to establish contracts with processors. Furthermore, large meatpackers, such as Tyson Foods and Smithfield Foods, would be prevented from buying animals from each other and limited in cutting deals with large livestock suppliers.

 

To demonstrate the unfair pricing that exists for many farmers, the USDA pointed out that an average farmer gets about 34 cents per chicken, while slaughterhouses receive $3.23 per bird.

-Noel Brinkerhoff

 

To Help the Little Guy, the Government Proposes New Rules for Big Meatpackers (by William Neuman, New York Times)

Tyson, Meat-Company Pricing Power Target of New Rules (by Alan Bjerga and Whitney McFerron, Bloomberg BusinessWeek)

USDA Plans New Regulations on Poultry Industry (by Bob Keefe, Atlanta Journal-Constitution)

Implementation of Regulations Required Under Title XI of the Food, Conservation and Energy Act Of 2008; Conduct in Violation of the Act (Department of Agriculture) (pdf)