NFU Urges DOJ to Block Tyson’s Buyout of Hillshire12 June 2014
US - The US National Farmers’ Union has called on the Department of Justice to step in to block the proposed takeover of Hillshire Brands by Tyson Foods.
The NFU was anti-trust laws enforced to halt the planned acquisition which the union says is anti-competitive.
The NFU believes that the tie up between the two companies will put too much buying power into the hands of Tyson and will allow the company to dictate prices and affect the livelihood of farmers and ranchers.
NFU President Roger Johnson said: “Tyson Food’s likely purchase of Hillshire benefits corporate owners at the expense of farmers and consumers.
“Our country is worse off because of the increasingly consolidated food and agriculture marketplace. Farmers and ranchers will have fewer buyers and Tyson will be better able to dictate lower prices paid to producers.
“Closures of meatpacking and processing facilities, especially in areas where both Tyson and Hillshire are currently operating, will be all but assured.
“We’re already well on our way to having one giant food company and this purchase would send us farther down that path.
“It’s striking that last week marked 100 years since the enactment of the Clayton Act, which was designed to prohibit anti-competitive mergers and ensure a fair marketplace.
“On behalf of family farmers and ranchers, I urge the Department of Justice enforce existing anti-trust laws and halt this planned acquisition.
“NFU will continue to fight against this and other mergers that will stack the deck further in favour of the powerful, multi-national food companies.”
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