Written by:
Jackie Schweichler - Education Programs Coordinator
The following information is an update of recent local,
state, national, and international legal developments relevant to agriculture.
Antitrust: Supermarket Chains File Antitrust Complaint
Against Chicken Producers
On June 29, 2018, The Kroger Co., and other supermarket
chains filed a complaint in the U.S. District Court for the Northern District
of Illinois alleging illegal trade restraint practices in the chicken industry
(The
Kroger Co., et al. v. Tyson Foods Inc. et al., 1:18-cv-04534). The
complaint was brought against Tyson Foods, Inc. and several other U.S. chicken
producers. The plaintiffs allege that U.S. chicken producers violated federal
antitrust laws by restraining trade to increase the price of chickens sold in
the U.S. from 2008 to 2016. According to the plaintiffs, the chicken producers
reduced the supply of broiler chickens and then manipulated wholesale chicken
price indices.
Antitrust: Class Action Lawsuit Filed Against U.S. Pork
Producers
On June 28, 2018, consumers filed a class action complaint
against U.S. pork producers and Agri Stats, Inc. (Duryea,
et al., v. Agri Stats., et al., 0:18-cv-01776) Agri Stats is a company that
provides accounting and data information to customers in the poultry, egg, and
swine industries. The complaint alleges that the pork producers and Agri Stats
conspired to fix U.S. pork prices. According to the plaintiffs, the pork
producers coordinated pork output and limited production to increase pork
prices. The plaintiffs argue that through Agri Stats, the pork producers
exchanged competitively sensitive non-public information regarding prices,
capacity, sales volume, and demand. One of the pork producers, Hormel Foods,
has released a
statement arguing that the allegations are “completely without
merit.”
Biosecurity: Kansas Adopts Cattle Disease Traceability
Program
On June 30, 2018, Kansas
announced the Cattle Trace pilot
project. Cattle Trace is a public-private partnership which was created to
manage cattle disease and provide critical tools in the event of an outbreak.
Cattle Trace will be able to show where diseased or at-risk animals have been
and when, in order for a fast and efficient response. The program will allow
Kansas to test the limits of the traceability system and determine if it is
capable of informing and guiding development on a national level. The Cattle
Trace system was created following a vote of the Kansas Livestock Association.
Food Labeling: Comment Period Closes for Proposed
Bioengineered Food Labeling Rule
On July 3, 2018, the comment period closed for the
Agricultural Marketing Service’s (AMS) proposed rule,
National Bioengineered Food Disclosure Standard. The proposed rule
would require food manufacturers to disclose information about bioengineered
food and ingredient content on any foods sold in retail. According to AMS, food
manufacturers are not required to disclose information about the health, safety,
or environmental attributes of bioengineered food versus non-bioengineered
food. The proposed rule suggests several options for disclosure including
written statements, three alternative symbols, and electronic/digital link. The
Secretary of Agriculture was directed by Congress to create a national
bioengineered disclosure standard by July 29, 2018, through the enactment of Public
Law 114-216 (7 U.S.C. 1621).
Animal Welfare: National Chicken Council Certifies Animal
Welfare Guidelines for Broiler Chickens
On July 10, 2018, the
National Chicken Council announced that their animal welfare guidelines
have been certified by the Professional
Animal Auditor Certification Organization. The guidelines specifically
apply to broiler and broiler breeder chickens and focus on bird behavior,
recordkeeping, corrective action requirements, increased oversight, time
requirements for euthanasia, and catching requirements. The guidelines require
that the “birds must have enough space to express normal behaviors such as dust
bathing, preening, eating, drinking, etc.” The guidelines also limit the number
of birds permitted in a chicken house based on the size of the barn, equipment,
and target weight of the birds.
International Trade: FAO Reports Decline in Overall Food
Price Index for June
On July 5, 2018, the Food and Agriculture Organization of
the United Nations (FAO) released their monthly FAO Food
Price Index (FFPI). The FFPI is a measure of the change in international
prices, weighted with the average export shares. The FFPI includes five
commodity groups, including cereal, vegetable, dairy, meat, and sugar. For June
2018, the overall FFPI decreased by 1.3 percent. According to FAO, price index
decreases can be attributed to “rising tensions in international trade
relations.” Cereal, vegetable, and dairy price indexes decreased by 3.7%, 3%,
and 0.9%, respectively. The FAO meat price index increased by 0.3% and the
sugar price index increased by 1.2%. The sugar price index increase is likely
due to the high use of sugarcane for ethanol production in Brazil, according to
FAO.
From National Ag Law Experts:
Institute for Agriculture & Trade Policy, QR Codes and GMOs: The
Proposed Food Labeling Rule (July 10, 2018)
Tiffany Dowell Lashmet, NM
Land Commissioner Sues NM State Engineer Over Water Permits,
Texas Agriculture Law (July 9, 2018)
"Pennsylvania
takes lead on hemp development" - The Independent
"The
land of milk and money: Dairy farmers cope with chronically low milk prices,
uncertain futures" - Ag Week Magazine
"Trump's
tariffs could reshape global ag trading for years" - Delta Farm Press
"'We
are the casualty:' US pig farmers brace for second round of pork tariffs from
China, Mexico" - CNBC
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