Exclusive-Sen. Warren, others urge U.S. Justice Dept to oppose Sanderson
chicken deal if antitrust violation found
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[February 18, 2022]
WASHINGTON (Reuters) -Senator
Elizabeth Warren, backed by some dozen other U.S. lawmakers, told the
Justice Department that a plan to merge chicken producer Sanderson Farms
with smaller rival Wayne Farms "raises significant antitrust concerns."
Commodities trader Cargill Inc and Continental Grain Co announced in
August that they would buy Sanderson Farms, the third largest chicken
producer, and combine it with Continental's Wayne in a deal worth some
$4.53 billion.
Chicken prices have risen sharply in the previous year, and the Justice
Department has been pursuing price-fixing in the sector but the market
shares for the combined company isn't as large as is usually seen in
merger challenges.
In the letter, sent on Wednesday to Jonathan Kanter, head of the
department's Antitrust Division, Warren, Representative Mondaire Jones
and others said the poultry industry has a history of colluding to fix
prices for consumers.
![](http://archives.lincolndailynews.com/2022/Feb/18/images/ads/current/charrons_bch_2022.png)
They said that because of consolidation among chicken producers which do
the slaughtering, farmers who actually raise chickens may have just one
or two producers in a particular region to do business with. The pay of
a typical chicken farmer fell more than 6% between 1988 and 2015, Warren
said.
"This mega merger, in a sector already plagued with consolidation and
illegal behaviors that harm farmers and consumers alike, represents a
new threat to building a competitive agricultural industry," the
lawmakers wrote. "We respectfully urge the DOJ to scrutinize the
proposed Sanderson-Wayne transaction to determine whether it violates
the antitrust laws, and the DOJ should oppose the merger if it does."
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![](../images/021822PIX/news_n61.jpg)
U.S. Senator Elizabeth Warren (D-MA) walks through the Senate Subway
at the U.S. Capitol in Washington, U.S., February 16, 2022.
REUTERS/Elizabeth Frantz
![](http://archives.lincolndailynews.com/2022/Feb/18/images/ads/current/humanesociety_sda022411.png) Cargill and Continental Grain said
in a statement that the planned deal would create a new player
"which will be in an ideal position to expand options and increase
supply for consumers."
"This new company plans to pursue new investments to expand its
operations, creating new high-quality jobs, and benefiting local
communities in seven U.S. states," they said in a statement.
In addition to Warren and Jones, among those signing the letter were
Democratic Senators Cory Booker and Richard Blumenthal, independent
Senator Bernie Sanders and Democratic Representatives David
Cicilline, Hank Johnson and Katie Porter.
Warren in November had called on the Justice Department to
investigate the impact of price-fixing and consolidation in the
poultry sector on consumers and farmers. She had also urged the
department's Antitrust Division to review "with suspicion" any large
mergers in the industry after Cargill and Continental in August
announced the Sanderson deal.
(Reporting by Diane Bartz; Editing by Leslie Adler and Chizu
Nomiyama)
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