AAM Press Release — 2/22/04

AAM Applauds the landmark decision: Pickett V. IBP/Tyson

(STURGEON, MO), AAM is pleased with the results of the federal jury’s $1.28 billion dollar judgment for manipulation of cattle prices by IBP/Tyson using captive supplies. U.S. District Judge Lyle Strom presided over a case that will return the cattle market to the position envisioned by the framers of the Packer & Stockyards Act of 1921. This jury verdict indeed is the repeal of the "The Jungle 2” world of predatory capitalism practiced by the meatpackers. Upton Sinclair wrote the “The Jungle” exposing the corruption in the packing industry 99 years ago. How could the present situation of the cattle market have come about? Corruption, conspiracy, and complacency.

Congratulations is in order for: lawyer David Domina, Agricultural Economist C. Robert Taylor, the staff of OCM, R-Calf members , and the brave cattlemen who brought the suit. Thank you, all who had the slightest hand helping seed justice in this trial.

During the trial it was discovered Tyson had sliced $5.62/cwt off cattle on the open market from early 1994 to late 2002 amounting to over $2 billion. This case shows how an oligopoly of packers controls the meat market. Today Tyson/IBP, Cargill/Excel, Swift/ConAgra, and Farmland National Beef control 82% of the beef slaughter market. The trial revealed that the “captive supply cattle”: were actually of poorer quality than cattle on the open market.

The fact is obvious that the federal government in allowing consolidation of so many meat packers in the last decades has turned away from enforcing laws on the books for almost 80 years. Congress, the last several administrations, courts, and especially the Department of Justice are guilty of nonfeasance or malfeasance.

The most disturbing part is that played by supposed pro-farmer and pro-rancher organizations having the gall to accept memberships at a price and then supporting the enemies of their members. Indeed: “their competitors are their friends” and their members “are their enemies.”