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Angus Journal

News Update

July 28, 2014

More Than 80 Farm, Consumer, Rural and Faith-Based Organizations Call on Justice Department to Extend Review of Proposed Tyson-Hillshire Merger

July 24, 2014, a coalition of 82 farm, ranch, consumer, rural and faith-based groups sent a letter demanding that the U.S. Department of Justice extend its review of the proposed Tyson Foods (Tyson) takeover of Hillshire Brands Co. (Hillshire). The proposed merger would join the largest U.S. meat and poultry company, Tyson, with the 11th largest meat company, Hillshire, and would substantially undermine competition in the pork-processing and hog-purchasing sectors, disadvantaging farmers and consumers and undermining rural communities.

“Fewer buyers of hogs and sows result in a less-competitive market for family farmers,” said Roger Johnson, president of National Farmers Union (NFU). “The rapid consolidation of market power in the hands of just a few pork processors resulted in the loss of more than 90% of all hog farms since 1980. Tyson’s takeover of Hillshire certainly warrants further investigation by the Department of Justice and should be stopped. It’s time for the Justice Department to enforce our anti-trust laws.”

Tyson won a protracted and expensive bidding war to initiate the hostile takeover of Hillshire. The Justice Department reviews hostile takeovers on an accelerated 14-day timeline, rather than the typical 30-days to consider a more thorough merger review. The letter notes that the complexity of the proposed merger warrants a much more comprehensive review because of Tyson’s significant hog and sow purchasing and marketing, and because the proposed merger would enable Tyson to undermine Hillshire’s sausage and lunchmeat rivals by disrupting their access to pork supplies. Tyson’s substantial and largely opaque role in private label processed pork production is another aspect of this deal that warrants further scrutiny from regulators.

“Consumers have witnessed an onslaught of food company mergers over the past few years that reduced consumer choices and contributed to higher grocery store prices,” said Food & Water Watch executive director Wenonah Hauter. “The Justice Department should not rubber stamp a $9 billion hostile takeover by America’s biggest meat company that is not in the best interests of consumers or farmers.”

For more information, please view the full release here.

— Adapted from a release by R-Calf USA.

Inaugural Rural Entrepreneurship Challenge Launched

The American Farm Bureau Federation (AFBF) together with Georgetown University’s McDonough School of Business Global Social Enterprise Initiative (GSEI) and the Georgetown Entrepreneurship Initiative’s StartupHoyas announced July 24 the Rural Entrepreneurship Challenge. The first-of-its-kind challenge provides an opportunity for individuals to showcase ideas and business innovations being cultivated in rural regions of the United States. The Farm Bureau Rural Entrepreneurship Challenge is a key component of the Rural Entrepreneurship Initiative, a joint effort between AFBF and Georgetown.

The inaugural challenge is accepting applications beginning July 24 until Sept.15. Semi-finalists will be announced at the National Summit on Rural Entrepreneurship at Georgetown University’s McDonough School of Business on Tuesday, Oct. 14. The summit is sponsored jointly by AFBF, GSEI and the White House Rural Council.

Challenge finalists will pitch their business ideas to a team of judges at the AFBF 96th Annual Convention, slated for Jan. 9-14 in San Diego, Calif. Participants, who must be based in a rural county, will compete for the Rural Entrepreneur of the Year Award and prize money of up to $30,000 to implement their ideas.

To learn more about the challenge and submit an online application, visit www.strongruralamerica.com/challenge.