During the Farmers and Ranchers in Action event, Secretary of Agriculture, Tom Vilsack identified areas in which the Department is attempting to increase competition and establish fair markets for food producers.  The USDA will evaluate Alternative Marketing Agreements relating to the activities of beef packers with respect to spot prices paid and the formulas used to calculate values.  USDA will issue an Advance Notice of Proposed Rulemaking and will solicit comments on potential interventions.

As a result of interviews and review of over 1,000 comments the USDA has identified alleged hidden fees and anticompetitive pricing strategies in the beef market.  Appropriate corrective action will be taken to promote transparency and competition and to eliminate unjustified charges.

The current Administration has been active in opposing consolidation and oligopoly in the beef and pork sectors of meat production but has extended their concern to the concentration of broiler and turkey production among integrators.  Over the past four years the USDA has attempted to restructure meat production by financially supporting the emergence of small plants that are less efficient than large facilities, ultimately reducing prices to consumers. 

With respect to the broiler industry, the USDA recognizes integration and competition given the larger number of producers relative to beef and pork.  The USDA has however intruded into the relationship between integrators and growers with special reference to the tournament system, no poach agreements and other claimed irregularities that have led to new rules under the Packers and Stockyards Act.