Glickman Sends USDA Teams to Assess Proposed Packing Plant Acquisition in Iowa
                                                               
                                           Release No.  0113.00
                                                               
                                    Susan McAvoy (202) 720-4623
                                          susan.mcavoy@usda.gov
                                      Leah Akbar (202) 720-7051
                                          Leah_L.Akbar@usda.gov


GLICKMAN SENDS USDA TEAMS TO ASSESS PROPOSED PACKING PLANT ACQUISITION IN IOWA

     WASHINGTON, April 10, 2000 -- Agriculture Secretary Dan Glickman is
sending two USDA rapid response teams to Iowa, Illinois, and Wisconsin to
assess the impact of a proposed packing plant acquisition on area hog farmers. 
The Secretary's action comes in response to the recent announcement that
Smithfield Foods, Inc., has acquired an option to purchase a Dubuque packing
plant from Farmland Foods, Inc.  

     "Increasing agricultural concentration troubles me," said Glickman.  "We
at USDA want to be particularly vigilant to ensure that all producers,
especially small- and medium-size producers, are treated fairly and that
genuine competition prevails in the marketplace."  

     The rapid response teams are able to conduct high priority, speedy
investigations to prevent or minimize major competitive or financial harm
caused by violations of the Packers and Stockyards Act.  Deployment of the
teams does not constitute an assessment that violations have or will occur,
rather that the potential for violations exists.  

     Information obtained by the teams will be used to determine whether any
aspect of the transaction violates the Packers and Stockyards Act, and may be
shared with other federal agencies.  Smithfield Foods has indicated that if it
purchases the plant, slaughtering operations there may be discontinued.  

     Producers and other interested parties are encouraged to share
information with team members regarding the possible impact of this proposed
acquisition on their operations.

     On Monday, April 17, from 2 p.m. to 8 p.m., a team will be at USDA's
Farm Service Agency office, 204 S. Center Avenue, Epworth, Iowa.  Another team
will be at the FSA office, 120 N. Industrial Parkway, West Union, Iowa, on the
same date and time. 

     On Tuesday, April 18, from 2 p.m. to 8 p.m., a team will be at the FSA
office, 807A S. Clay Street, Mount Carroll, Ill.  Another team will be at the
FSA office, 150 West Alona Lane, Lancaster, Wisc.

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