Court Orders Beef Packer to Process Niman Ranch Cattle
by Susan Kelly, meatingplace.com
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federal judge has ruled that Missouri Prime Beef Packers must process cattle supplied by Niman Ranch, following a previously executed agreement between the companies. Missouri Prime had agreed to process and fabricate Niman Ranch cattle into wholesale cuts and ground beef products under a February 2021 contract, according to the court order. The contract, which expires in January 2024, allowed either party to terminate the agreement early with at least 90 days’ written notice. In December, a Missouri Prime executive notified Niman Ranch of a decision to stop processing Niman’s cattle, stating “we have no choice if we want to remain solvent,” according to the court order. Niman responded by asking Missouri Prime to honor its agreement and provide 90 days’ notice before termination. Niman Ranch said it did not have the time necessary to find a replacement processor, noting that compliance with USDA labeling approval and Certified Humane certification processes requires much longer than three weeks. The result was that Niman Ranch would be unable to provide finished meat products to its customers, according to court documents. Niman also argued that Missouri Prime’s refusal to process its cattle would “permanently damage Niman Ranch’s hard-won reputation for meeting its customers’ needs.” In addition, Niman said cattle that remain unprocessed for too long cannot be used for grass-fed programs, putting the company at risk of losing some of its suppliers. The court order noted the defendants’ only argument was that the agreement was not valid because the contract provided by Niman Ranch was incomplete. The court said it determined that Missouri Prime terminated the agreement because it found more lucrative business opportunities, despite its ongoing responsibilities under the contract with Niman Ranch. The court also found that Missouri Prime followed the requirements and schedules of the agreement until its December termination email. The court agreed that Niman could suffer irreparable harm to its reputation and granted Niman’s motion for a temporary
restraining order and preliminary injunction. Niman Ranch is owned by Perdue Farms, which bought the farmer and rancher network in 2015. Missouri Prime Beef Packers began operating its processing facility in early 2021.
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New DOJ Antitrust Head Says He’ll ‘Reinvigorate’ Enforcement
by Peter Thomas Ricci, meatingplace.com
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he new assistant attorney general of the Department of Justice’s antitrust division has announced how he plans to promote competition in the U.S. economy – and meat processing may be a part of those efforts. Jonathan Kanter, who was confirmed for his position in November, outlined his legal strategies in an address Monday to the New York State Bar Association, describing how he intends to “reinvigorate” antitrust law enforcement.
Collaborating with USDA
Antitrust enforcement not ‘keeping pace’ Kanter said antitrust law has not kept pace with the rate of economic development in the past 20 years, and thus he is looking to “reinvigorate antitrust enforcement.” “That is why,” Kanter continued, “we and our law enforcement partners are committed to using every tool available to promote competition. The American people deserve real antitrust enforcement that meets the economic challenges that we confront.” A graduate of Washington University School of Law, Kanter was previously an attorney in the Federal Trade Commission, and founder of the Kanter Law Group.
Focus on concentration Kanter’s address also signaled a new focus on concentration in U.S. industries, including agriculture. He argued that such concentration depresses wages and makes it harder for “entrepreneurs and small businesses to get off the ground.” “I am deeply concerned about these trends,” Kanter said. “Too little competition hurts real people, every day. It’s not just a statistical or economic concept. It is a halfempty grocery cart for Americans who can’t afford price hikes and padded margins. Or lower salaries and worse working conditions because of employers who face too little competition and workers who do not have sufficient options.”
Kanter unveiled a DOJ initiative called Antitrust Enforcement for All-of-Government that involves collaborating with partner agencies to “ensure that competition issues are thoroughly considered, and pursued, under all of the statutes that Obligation to enforce laws promote competition in the economy.” Paying particular attention to mergers, In particular, Kanter said the initiative is Kanter said the DOJ has an obligation to consistent with President Biden’s July 2021 enforce antitrust laws and challenge executive order on competition, which spe- mergers that lessen competition. That cifically encouraged Agriculture Secretary includes working with the FTC on existing Tom Vilsack to engage with animal guidelines to mergers and consulting with agriculture. “state enforcers, other government agencies, Biden’s order stated that Vilsack shall businesses, trade and labor groups, scholconsider, among other things, “providing ars and the American people.” clear rules that identify recurrent practices Kanter also shared a skepticism toward in the livestock, meat, and poultry indus- merger settlements, and said blocking tries that are unfair, unjustly discriminatory, mergers is the “surest way” to preserve or deceptive and therefore violate the competition. Packers and Stockyards Act.” “I am concerned that merger remedies Biden’s order also encouraged Vilsack to short of blocking a transaction too often prohibit “unfair practices related to grower miss the mark,” Kanter said. “Complex setranking systems — systems in which the tlements, whether behavioral or structural, poultry companies, contractors, or dealers suffer from significant deficiencies. Thereexercise extraordinary control over numer- fore, in my view, when the division ous inputs that determine the amount concludes that a merger is likely to lessen farmers are paid and require farmers to competition, in most situations we should assume the risk of factors outside their seek a simple injunction to block the transcontrol, leaving them more economically action. It is the surest way to preserve vulnerable.” competition.
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FEBRUARY 2022
21
