U.S. Sen. Steve Daines (R-MT) wants assurances from the administration that price-fixing and market manipulation have not occurred following a major fire in August at a market-leading Kansas beef processing plant.
The fire destroyed the Tyson Foods plant in Holcomb, Kan., which operated at roughly 6,000 head of cattle per day representing some 6 percent of the total U.S. fed cattle processing capacity, according to a Sept. 10 letter written by Sen. Daines and U.S. Rep. Greg Gianforte (R-MT) sent to U.S. Department of Agriculture (USDA) Secretary Sonny Perdue.
The lawmakers said that the subsequent loss of a major buyer in the market corresponded with a decline in cattle prices and an increase in profit margins for packers “that is having a substantial impact on the livelihoods of ranchers and related businesses across Montana.”
“Additionally, the uncertainty that has been created exacerbates the existing challenges facing ranchers and the livestock industry, whether it be cattle prices, natural disasters, disease, or market access issues,” the lawmakers wrote.
In their letter, Sen. Daines and his colleague urged a swift, thorough and transparent investigation by USDA, which Secretary Perdue recently said would be investigating the situation to ensure that no price-fixing or unfair market manipulation has taken place.
The lawmakers also asked Secretary Perdue to “take appropriate enforcement actions should any unfair or unlawful market distorting practices be identified.”
They also want regular updates provided to Congress and any impacted stakeholders on the status of USDA’s investigation.