Groups says consolidation by large companies will hurt smaller companies.

Krissa Welshans 1, Feedstuffs Editor

June 15, 2018

1 Min Read
Watchdog asks DOJ to examine Tyson organic poultry acquisition
Image Source Pink/Image Source/Thinkstock

Organic industry watchdog The Cornucopia Institute this week submitted a formal request to the U.S. Department of Justice asking the agency to scrutinize Tyson Foods' newly announced acquisition of Tecumseh Poultry LLC, one of the leading organic poultry brands, claiming that the deal will irreparably harm competition in the already highly concentrated industry sector.

Cornucopia pointed out that the acquisition would add to Tyson’s organic chicken products under its NatureRaised Farms and Aidells brands.

Further, the group noted that the biggest players in the poultry industry -- Pilgrim’s Pride, Perdue and Tyson -- are heavily invested and dominate the growing organic market.

Cornucopia contends that the acquisition could substantially lessen competition in the organic poultry market.

“Greater consolidation by large companies, including Tyson, allows them to push out smaller companies or farmstead producers who would have difficulty competing with Tyson’s superior economy of scale,” said Marie Burcham, a Cornucopia Institute food and farm policy analyst.

This is especially true with organic chicken and turkey, because small brands are more heavily affected by the high costs of organic grain and limited consumer recognition, the group said.

“We are concerned that Tyson and other large industrial livestock producers will easily be able to beat out any competition by controlling prices and squeezing more moderate-sized processors and marketers,” Burcham said. “We already see this happening in the organic poultry market. Livestock raised with true outdoor access and local feed carry the same label as birds that are confined without outdoor access, raised using industrialized methods and fed imported grain and other feed of dubious origin.”

It is vital that competition remains open, Burcham added.

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