010110 Senator Pushing For Stronger Antitrust Laws

Washington - Sen. Chuck Grassley, a critic of the proposed merger of meatpacking powerhouses Tyson Foods Inc. and IBP Inc., said he would push legislation this year to strengthen the nation's antitrust laws.

The Iowa Republican, who is expected to become chairman of the powerful Senate Finance Committee, said although Congress had limited influence over business mergers, he would use his position to protect family farmers and promote competition in the agriculture industry.

“I've got ways of strengthening (antitrust laws) and I hope to push legislation in the new Congress to strengthen them,” Grassley said.

Grassley has sponsored a number of legislative proposals to slow growing concentration in the farm sector, including giving the Agriculture Department new authority to challenge agribusiness mergers.

The leading U.S. poultry producer, Tyson Foods, agreed on Monday to buy beef processing giant IBP for $3.2 billion, leading some to believe competition would be reduced if the deal is approved.

Grassley on Wednesday sent a letter to Attorney General Janet Reno and Federal Trade Commission Chairman Robert Pitofsky expressing serious concerns about a Tyson Foods-IBP merger.

“I share farmers' and producers' concerns that this transaction will adversely impact their ability to obtain fair prices for their products,” Grassley said in the letter.

“Moreover, I'm concerned that Tyson's current large presence in the retail market will negatively affect product choice and the price consumers pay at the meat counter,” he added.

Tyson Foods currently controls 25-30% of the poultry market, while IBP has a similar share in the beef market and about 18% of the pork market, a Tyson spokesman said.

Grassley said he will discuss the merger with President-elect George W. Bush's nominee for Attorney General John Ashcroft when they meet for Ashcroft's pre-hearing interviews.

Democrats Tom Harkin of Iowa and Paul Wellstone of Minnesota also have urged U.S. antitrust regulators to closely scrutinize the Tyson-IBP merger and the growing concentration in the agriculture industry.

RETURN TO HOME PAGE

E-mail: sflanagan@sprintmail.com