Agricultural Law Weekly Review - July 12, 2018

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)

Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive AgLaw HotLinks

"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

"Nestle, Hershey at odds with farmers over U.S. GMO labeling" - Reuters

"Driven by Almonds, Pollination Services Now Exceed Honey as a Source of Beekeeper Revenue" - USDA

"Trump's tariffs could reshape global ag trading for years" - Delta Farm Press

"Monsanto responds to increased dicamba drift reports" - Farm Press

"'We are the casualty:' US pig farmers brace for second round of pork tariffs from China, Mexico"  - CNBC

"Rhode Island Bets The Farm That Cheap Land Will Help Local Agriculture Thrive" - NPR

"Study finds economic impact of using antimicrobials in feedlots" - Beef Producer

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Agricultural Law Weekly Review—October 6, 2016

Written by M. Sean High – Staff Attorney

The following information is an update of recent, local, state, national, and international legal developments relevant to agriculture:

GIPSA: Amendment Regarding Electronic Livestock Transactions Sent to President

On October 3, 2016, after unanimous consent by the United States Senate, President Barak Obama was presented with H.R. 5883 which would amend the Packers & Stockyards Act (GIPSA) “to expand the definition of ‘marketing agency’ to include any person engaged in the business of buying or selling livestock in commerce through online, video, or other electronic methods on a commission or other fee basis when handling or providing a means to handle receivables or proceeds from the sale of that livestock.” According to the Bill Summary, H.R. 5883 would also amend GIPSA “to specif[y] that funds for purchasing livestock may be transferred to the account of the seller by electronic funds transfer or any other expeditious method that the Department of Agriculture determines to be appropriate.”

Livestock Trading: AMS to Require Online Cattle Exchange Reporting

On September 29, 2016, the United States Department of Agriculture (USDA) Agricultural Marketing Service (AMS) issued a press release announcing that beginning October 5, 2016, AMS will include “in the National and Regional direct negotiated slaughter cattle reports, cattle purchased through the Fed Cattle Exchange by packers required to report according to the [Livestock Mandatory Reporting] Act and regulation.” According to AMS, the Fed Cattle Exchange was created early in 2016 as an online platform to provide “a web based interface where feedlots can offer pens of market ready cattle for sale, and packers can bid on those offerings in a timed format, similar to an online auction.” AMS stated that the inclusion of the Fed Exchange reports in the National and Regional direct negotiated slaughter cattle reports was at the request of the cattle industry. 

Labeling: FSIS Issues Guidance for Animal Raising Claims

On October 5, 2016, the United States Department of Agriculture (USDA) Food Safety and Inspection Service (FSIS) published notice in the Federal Register “announcing the availability of an updated version of the Agency's compliance guideline on documentation needed to support animal-raising claims on product labels that must be submitted for Agency approval before they can be used on product labels” (81 FR 68933).  Comments on the guidance document must be submitted on or before December 5, 2016.  According to FSIS, although the agency “is requesting comments on this guideline and may update it in response to comments, FSIS encourages establishments that wish to submit request for approvals of animal raising claims on product labels to begin using this guideline.”

Indemnity: APHIS Announces Updated Calculator for Laying Hens

On September 30, 2016, the United States Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) issued a press release announcing an update to the agency’s indemnity calculator formula for laying hens.  According to APHIS, the updated indemnity calculator formula “addresses concerns raised by egg layer producers following the 2014-2015 outbreak of highly pathogenic avian influenza (HPAI)” and is intended to “more closely resemble a fair market transaction.” The new APHIS indemnity calculator formula became effective October 1, 2016.

International: U.S. Senate Ratifies Genetic Resources Treaty

On September 28, 2016, the United States Senate passed a resolution of advice and consent ratifying the International Treaty on Plant Genetic Resources for Food and Agriculture adopted by the Food and Agriculture Organization of the United Nations on November 3, 2001, and signed by the United States on November 1, 2002 (the Treaty).  According to the resolution, “[t]he centerpiece of the Treaty is the establishment of a multilateral system under which a party provides access to other parties…to listed plant genetic resources held in national genebanks…solely for purposes of research, breeding, and training in agriculture.”