Attorney General's News Release

April 13, 1999

Nixon proposes state rule requiring meatpackers to provide farmers with wholesale market price information

Jefferson City, MO — In a move designed to aid Missouri farmers, Attorney General Jay Nixon today proposed a state rule requiring meatpackers to provide wholesale market price information to livestock producers prior to sale. Currently, some contracts between packers and their suppliers include a gag clause that forbids farmers from disclosing price information.

Nixon said providing the information would allow farmers to compare prices and terms offered by packers and help balance the bargaining power between packers and farmers. Nixon cited the fact that the five largest pork packers account for more than 60 percent of the hogs slaughtered and that the top four beef packing companies account for more than 87 percent of the cattle slaughtered.

"It is only fair to the farmer to have access to the prices being paid," Nixon said. "Knowledge can help level the playing field for farmers when they're faced with the business reality that a small number of large packers control most of the market. This rule requires each packer who purchases livestock in Missouri either directly or through a livestock dealer to furnish the producer with clear information regarding wholesale market price information."

The proposed rule defines livestock to include swine, cattle, sheep or poultry and defines wholesale market information to include all prices paid for livestock on the day of delivery and during the previous business day. The rule states in part, "It is a concealment, suppression or omission of material fact in connection with the sale of livestock for a packer to not disclose wholesale market price information to the livestock producer prior to sale." Violations of the rule would violate Missouri's Merchandising Practices Act.

Once the proposed rule is published in the Missouri Register by the Secretary of State, a 30-day comment period begins. Comments about the proposed rule may be sent to the Office of Attorney General, Attention: Douglas Ommen, 1530 Rax Court, P.O. Box 899, Jefferson City, MO 65102.

Nixon and other state Attorneys General have asked the United States Congress to implement federal programs to require meat packers to provide much more public information on the prices they pay to livestock producers.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818