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Mergers Help Big Get Bigger Leaving Small Helpless

31 July 2014

US - The proposed merger between Tyson Foods and Hillshire Brands will hurt consumers, farmers and ranchers alike, the National Farmers Union (NFU) President Roger Johnson said in a 'Huffington Post' op-ed.

“We are told time and again by multinational companies proposing mergers that consumers will benefit from better prices,” Mr Johnson wrote.

“But we’ve seen how well that concept works in the real world, as anyone who has flown lately, or purchased prescription medication, or felt the sting of “Too Big to Fail” banking, or dealt with a cable company can attest.”

Mr Johnson explains the Department of Justice (DOJ) is currently considering a massive marriage between the largest meat company in the nation, Tyson Foods, and the 11th largest meat company, Hillshire Brands Co.

“The scale and scope of this merger will substantially reduce competition in the meat sector, which is already very concentrated,” he explained.

“In fact, just four companies slaughter and process nearly 81 per cent of the cattle nationally, and in the pork sector, the top four firms control 65 per cent of hog sales.”

Mr Johnson points out that for grocery shoppers, the proposed Tyson-Hillshire merger means Big Meat will now have even more control over prices. “Over the decades, we’ve heard the same tired propaganda: That consolidation helps everyone,” he concluded.

“But a century of broken promises and a little common sense tells us differently.

Mergers help the big get bigger and leave the small guys helpless to their whims. The DOJ needs to say no to this latest power grab.”

TheMeatSite News Desk

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