Fischer Statement on USDA Investigation into Market Manipulation Following Tyson Holcomb Plant Fire

Statement

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, released the following statement today after U.S. Secretary of Agriculture Sonny Perdue announced that the USDA's antitrust enforcement division would examine whether market manipulation occurred following a fire earlier this month at a Tyson beef processing plant in Holcomb, Kansas:

"After this devastating fire occurred, I called for commodity market oversight to help ensure market participants are not taking advantage of our ag producers. I am pleased to see that Secretary Perdue will be taking a thorough look at potential anti-competitive behavior to protect Nebraskans. It's the right thing to do."

Secretary Perdue directed USDA's Packers and Stockyards Division to investigate collusion or other unfair practices pertaining to beef pricing margins following the fire. In recent weeks, profit margins for producers have shrunk as prices paid for live cattle have fallen while beef prices have remained high.

Click here to view the full text of Secretary Perdue's announcement.

The fire occurred on August 9 at a Tyson Foods plant, which operated at approximately 6,000 head/day or 375 head/hour. Following the fire, Senator Fischer wrote letters to Chairman Heath Tarbert of the Commodity Futures Trading Commission (CFTC) and Administrator Raymond P. Martinez of the U.S. Department of Transportation's Federal Motor Carrier Safety Administration, calling for commodity market oversight and flexibility for livestock haulers.

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