armers Union
WASHINGTON, D.C. -
National Fanners Union (NFU)
recently praised the 35 members
of the U.S. House of
Representatives who have called
on U.S. Attorney General Janet
Reno to immediately investigate
possible market abuses by the
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Bsicks Congressional Call For “The merger mania that is
x i • i? „ _ sweeping our national and inter-
PriCe Investigation national markets is providing
great economic windfalls for
dairy processing and retail mar- food traders. However, it is not
keting industries. providing the competition that
The letter asks the allows farmers to receive a fair
Department of Justice to inves- price for what t h ey produce and
tigate the widening gap between families to find a fair price as
the price dairy farmers are paid they t food on t h e ir tables.”
for their product and what con- The top eight milk processors
sumers pay at the grocery store, now control almost half of the
national market. In some areas
of the country, one processor con
trols as much as 70 percent of
the milk processing market.
This has led to the lowest price
levels pid to farmers in two
decades.
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in the light of unprecedented
concentration in the processing
and grocery industries.
“Farmers are receiving the
lowest prices for milk in 20
years while consumers are see
ing record high prices,” said
Leland Swenson, president of
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in the highly concentrated gro
cery market. Five firms hold 42
percent of the grocery store mar
ket. In the Chicago grocery mar
ket, where two grocery chains
dominate the market, stores are
changing more than one dollar
more per gallon of milk than in
areas where more competition
exists.
“This summer, while produc
ers where experiencing 20-year
low prices, consumers in
Chicago were paying record high
prices,” said Swenson. “This is
contrary to what happens in a
fair and open market. We
applaud the members of
Congress who are calling for this
urgently needed investigation.