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Competition bureau can't stop predators Beef prices
controlled at sale barns, MP charges
OTTAWA — An Alberta MP at the
Standing Committee on Agriculture has accused Cargill and Tyson of buying
60 per cent to 70 per cent of the yearlings available on the market last
fall in western Canada and using them to control and depress the market
for producers. Cargill and Tyson are the two
largest of three packing plants in Western Canada. "They have those yearlings
sitting in feedlots," MP Rick Casson, a member of the standing
committee said. "They can use them to playoff against the independent
feedlot operator." He said that if the feedlot operator
would not take the price they offered that day, they (Cargill and Tyson)
used their own cattle. "They’ll starve the guy until he
sells," he said. When asked if Cargill and Tyson were
abusing producers through marketplace dominance, the Canadian Commissioner
of Competition, Sheridan Scott, waffled. To be dominant in the marketplace
wasn’t illegal, she told the committee, suggesting there was nothing the
Competition Bureau could do. "There is a maxim in law called
‘res ipsa loquitur’, that the thing speaks for itself," MP David
Kilgour pointed out, indicating what was happening should be enough for
the commissioner to take action. The situation (on beef farms) has
worsened and all of us around the table know it, he said. "What on earth does it take for
you people (Competition Bureau) to get off your butts?" Said Scott: "Just because you
have discrepancy does not mean you have facts that would point to criminal
activity." The Competition bureau stone walled
the committee so much, Liberal Rose-Marie Ur, summing up the day, said
"I’m just devastated sitting here today. I’m saddened. I can’t
believe, as part of the government, that this is what we are
hearing." On February 24, Tyson and Cargill
snubbed the committee hearings in Ottawa, angering MP David Kilgour. He
wanted the government to send for these companies, their papers and
records by summons. Competition Bureau economist Richard
Taylor wanted to know the significance of Tyson and Cargill "owning
the feedlot." He wanted to know what percentage of the cattle in
Alberta coming off feedlots were controlled by the two companies. MP Dick Procter suggested 60 per
cent. Taylor said he understood that 35
per cent to 30 per cent of cattle went to the United States for slaughter.
Procter said none of them go now. Taylor said that the act of buying
the yearlings had to be an anti-competitive act, but these are not
extraordinary events. "They’re the typical predatory pricing,"
he said. At that point chair Paul Steckle interrupted. He
wanted to know if the government who Taylor represented was going to bring
some justice. Who would be the advocate for farmers? Tired of the road
blocks, he pleaded "We’re When Scott hedged again, Western MP Garry Breitkruez asked what other kind of evidence the Competition Bureau would need. "We’re fiddling while Rome burns," he said. Scott told MP Larry McCormick that 400 people work with the competition bureau. "This is the same Competition Bureau that takes on the oil companies," he said, adding that people in the oil industry have lost their businesses, and "lives were destroyed because of the oil companies." He implied that the Competition Bureau did not help them. He told Scott she had talked to all the big boys, but wanted to know how many producers she had talked to. She tried to weasel out of an answer by citing "issues of confidentiality." Eventually, she admitted none of her employees had been out to speak to farmers. |
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