DOJ/USDA discuss poultry industry, hear producer fears of retaliation

Poultry producers who offered testimony at the second of five joint federal hearings on competition in agriculture Friday urged the government to crack down on large agribusinesses that stifle economic opportunity for farmers.

Garry Staples, a 57-year-old Alabama poultry farmer who took part in panel discussions, told federal officials that he and other producers fear there will be backlash from the companies that provide their livestock because they are speaking out, according to reporter Paul Gattis of The Huntsville Times.

But in a moment that seemed to crystallize the significance of the Department of Justice/Department of Agriculture workshop at Alabama A&M University, Staples’ concerns were eliminated.

“I fully expect you will not experience retaliation,” U.S. Assistant Attorney General Christine Varney told Staples in a voice almost challenging that response. Then she handed Staples a piece of paper.

“But if you do, call me at that number.”

The workshop, led by U.S. Secretary of Agriculture Tom Vilsack and U.S. Attorney General Eric Holder, focused on issues in the poultry industry and featured panel discussions on poultry grower issues and trends in poultry production. It also included opportunities for public comment. The two officials once again reiterated that discussions and investigation into possible antitrust issues within agricultural sectors was a top priority.

Alabama, the site of the nation's second joint hearing on competition in agriculture, is the third largest producer of broilers and the 13th largest producer of eggs in the nation. (Photo courtesy: USDA Farm Service Agency)

“One thing that is already clear is that competition is crucial to ensuring opportunity and fairness in our agricultural markets,” said Holder. “The Department of Justice is committed to working jointly with the Department of Agriculture in protecting competition in those markets.”

The workshops are the first-ever to be held jointly by the two agencies to discuss competition and regulatory issues in agriculture. The goals, according federal officials, are to promote dialogue and foster learning, as well as to listen to and learn from people involved in agriculture.

“All players in the poultry industry deserve an honest chance at success, and that requires fair, viable and competitive markets,” said Vilsack. “[This] conversation helped bring a better understanding of the issues impacting growers on a daily basis and provided an opportunity to openly discuss some of the ideas that have been raised to address these concerns.”

Richard Lobb, spokesman for the National Chicken Council, released a study in advance of the workshop to bolster claims that competition within the broiler chicken industry is thriving and benefits both larger companies, producers and consumers. The study, which was commissioned by the National Chicken Council, noted that 75 percent of the broiler growers surveyed were satisfied with their decision to go into broiler growing, and that many companies have waiting list of individuals who want to serve as contract growers.

Lobb told the Associated Press that the Alabama workshop was skewed with testimony from unhappy farmers.

Federal officials have promised to post transcripts from the Alabama workshop on the Antitrust Division’s website once they are complete.

The agencies held the first joint workshop in Ankeny earlier this year, and the remaining three meetings will feature discussions on the dairy industry (Wisconsin in June), other livestock industries, including pork, (Colorado in August) and a final summary of all workshops (Washington, D.C. in December).