The Meat Racket: The Secret Takeover of America's Food Business

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The Meat Racket: The Secret Takeover of America's Food Business Page 40

by Christopher Leonard


  “localvore” movement, 288, 318

  Luter, Joe, 241–43, 255

  Lynch Livestock, 201, 203

  McDonald’s, 91, 92, 94–95, 98, 107, 109, 110, 124, 159, 225, 267, 275

  MacMillan, Anne Cannon, 296, 349n

  McNuggets, 95, 107, 163, 178

  McPherson County Feeders, 226

  Malloy, Bob, 240–41

  Marshall, Miss., 157, 168, 191

  Maverick Feeders, LLC, 210, 216–17, 219, 221

  Mayo, Robin, 274

  meat industry, 3–4, 166, 276, 282, 291, 303

  biological innovations in, 5–6, 21

  “chickenization” of, 5, 145, 149, 152–53, 168, 226, 242, 289

  consolidation of power in, 4–5, 7, 22, 25, 100, 153, 175–76, 229, 232, 233, 235, 246, 248, 249, 254, 263, 264, 266, 269, 280–81, 282, 302–3, 316; see also vertical integration

  corporate oligarchies in, 3, 4, 5, 7, 67, 110, 114, 115, 136, 153, 168, 171, 176, 184, 197, 198, 199, 202, 203, 204–5, 208, 209, 212–13, 214, 218, 219, 220, 229, 231, 232, 233, 235, 246, 248, 249, 263, 266, 269, 271, 274, 275, 280–81, 282, 284, 313, 318

  decline of independent farms in, 5, 70, 184, 191, 194, 196–97, 202, 205, 209, 212, 223, 236, 246, 272, 281, 282

  lobbyists in, 12, 153, 210, 223, 249–52, 254, 263, 275–76, 279, 280, 283, 285–87, 288–89, 291–92, 295, 302, 318

  “localvore” movement in, 288, 318

  loss of open-market competition in, 3, 5, 6–7, 79, 108, 110, 136–37, 173–74, 184, 191, 195, 200, 201–5, 209, 212–13, 217, 218–20, 221–23, 224, 229, 237, 238, 257, 269, 271, 275, 282, 315

  political patrons of, 262, 268, 310

  rising consumer prices in, 3–4, 5, 7, 12, 79, 195, 196, 204, 248, 269, 294, 313, 318

  safety provisions in, 252

  Tyson’s dominance in, 2–3, 4, 5, 6–7, 108, 159, 160, 175, 176, 281n, 311, 318

  Tyson’s pioneer business model in, 3, 4, 5–6, 69–70, 78, 92, 93, 102, 107, 110, 111, 149, 152–53, 167–68, 169, 173–74, 180, 187, 209, 212n, 223, 225, 226, 240, 241, 262, 287, 311

  USDA/DOJ workshops on growing power of corporations in, 279–82, 287, 288, 289, 294–95, 298, 302–3

  vertical integration in, see vertical integration

  see also specific meat industries

  meatpackers, 211, 212, 223, 225, 240, 247, 251, 285, 288, 295, 303

  control over animal producers by, 5, 7, 208–9, 212–13, 218, 224, 248

  divvying up of feedlot territories by, 218–20

  “packer bans” and, 240–41, 242, 243, 253, 255, 284–85

  see also beef industry; pork industry; slaughterhouses; specific meat companies

  Meat Trust, 4

  Mercantile Bank, 78

  Mexican immigrants, 197

  Mexico, 119–20, 212

  Meyerhoeffer, Sonny, 272

  Mickelson, Gary, 325

  migrant farming, 25, 50–51

  Miller, Tom, 229, 235, 236, 241–45, 257, 269, 280, 287

  Producer Protection Act of, 244, 245, 250, 252, 255, 263, 283

  Smithfield Foods’ legal battles against, 236, 241–44, 245, 253–54, 255, 280, 287

  Smithfield’s settlement with, 255–56, 270, 280

  Mississippi, 144, 303, 305

  Missouri, 9, 48, 60, 67, 138, 158, 159, 244

  Missouri, University of, 56, 233

  Moeller, Bill, 149–52, 153, 154, 155, 156, 157, 168, 169, 192

  Moline, Steve, 236–41, 242, 243, 244, 249, 253–54, 255

  Monsanto, 235, 251, 261, 269, 279

  Moore, Joyce, 119

  Moore, Richard, 118–19, 120, 132

  Morning Joe (TV show), 297–98

  Muegge, Paul, 252

  Murphy, David, 262–63, 294–95

  Murphy Farms, 240–41, 242, 243

  Nader, Ralph, 245

  Nancy (Lynch Livestock employee), 201

  N&N Farm, 128–30, 132–37

  diseased bird epidemic at, 133–34, 135, 136, 137

  National Beef, 208, 210, 211, 216, 217, 219, 225, 226, 303

  cattle-buying operation at, 214–16, 220

  Dodge City plant of, 211–12, 214

  National Cattlemen’s Beef Association (NCBA), 285, 286, 295

  National Chicken Council, 251, 285, 286, 291–92, 295

  National Pork Producers Council (NPCC), 286

  Neal’s Café, 62, 87, 91

  nitrogen fertilizers, 69

  Normal, Ala., 12, 287

  North Carolina, 101, 162, 195, 240, 243, 318

  Northwest Poultry Growers Association, 79, 84, 85

  nuggets, chicken, 95, 106, 107, 178, 265, 274

  nurseries, hog, 156, 157, 191, 226–27, 266

  Obama, Barack, 268, 276, 277, 318

  2008 presidential campaign of, 12, 257–58, 261–64, 281, 285, 294

  2012 reelection campaign of, 297, 303

  Vilsack selected as secretary of agriculture by, 12, 268–70

  Obama administration, 279, 288, 290, 298, 299, 302

  agricultural reforms attempted by, 4, 12, 279, 280, 281, 282, 283–7, 288, 289, 290, 295, 298, 299, 301, 303, 318; see also GIPSA rule

  Office of Management and Budget (OMB), 298–99

  OK Foods, 136, 137

  Oklahoma, 46, 52, 135, 138, 143, 144, 155, 156, 189, 191, 192, 208, 219, 243, 244, 252, 266, 269, 311, 314–15

  Ouachita Mountains, 18, 25, 29

  Owens, Carry, 44

  Owens, Donna, 125–26

  Owens, Greg, 125–27

  Ozark hill country, 48, 55, 58, 106, 305, 306

  “packer ban,” 240–41, 242, 243, 253, 255, 284–85

  Packers and Stockyard Act (1921), 84–85, 248, 283–84, 285, 291, 301

  Packers and Stockyard Administration (PSA), 248–49, 254, 275–76, 282–84, 285

  Page, Greg, 246–47

  pesticides, 52, 69

  petro-chemicals, 69

  Phillips Petroleum Company, 63

  Phouthavong, Boonau, 113–14, 116, 123–25, 127–28, 130–31, 137, 138–39, 141, 145

  Phouthavong, Pat, 123, 124

  Phrasounonh, Cecil, 46

  Pickett v. Tyson Foods, 269

  Pilgrim’s Pride, 233, 266, 269, 271, 274, 275, 291

  bankruptcy of, 271–72, 273, 274

  Popcorn, Faith, 177

  pork industry, 54, 92, 164, 167–68, 174, 189, 195–96, 208, 225, 243

  biological innovations in, 6, 157

  “boxed” products introduced in, 171

  breeding techniques in, 157, 202–3, 237

  “buyer power” in, 203–4

  “chickenization” of, 5, 149, 152–53, 156–58, 168, 183–84, 192, 194, 195, 204–5, 242, 246

  consolidation of power in, 153, 168, 198, 199, 203, 235, 237, 240, 246, 281

  corporate oligarchy in, 153, 168, 176, 184, 197, 198, 199, 202, 203, 204–5, 235, 246, 281

  declining quality of meat in, 153

  government regulation in, 85, 240, 241, 242, 243, 253, 254, 256, 257, 280, 287, 299

  Iowa as epicenter of, 186–87, 250

  lobbyists in, 153, 249–50, 286

  loss of open, competitive market in, 184, 191, 195, 200, 201–5, 238

  Miller vs. Smithfield Foods legal battle in, 241–44, 245, 253–54, 255, 280, 287

  1998 market collapse in, 195–97, 199, 238–39

  open, competitive market as once existing in, 189, 190, 202–3, 236

  poultry industry’s expansion and, 152, 242

  price cycles in, 116, 149, 195–96

  Producer Protection Act and, 244, 245, 250, 252, 255, 263, 283

  rising consumer prices in, 5, 195, 196, 204, 294, 313

  slaughterhouses in, 157, 171, 183, 187, 189, 190, 195, 196, 201, 203, 311

  Tyson’s business model and, 5, 167–68, 169, 240, 241

  Tyson’s dominance in, 180, 204, 281n

  vertical integration in, 5, 156, 157, 172, 191, 202, 237, 240, 241, 242, 269, 280, 285, 287

&n
bsp; see also hog farming; meat industry; Tyson Foods, hog division of

  Poultry Growers Inc., 72–73, 74

  poultry industry, 34, 67, 79, 82, 104, 121, 149, 164, 179, 225, 247

  antibiotics used in, 7–8

  attempted government reforms in, 287–89, 291–94, 295, 299–300, 301, 302

  biological innovations in, 5–6, 21, 53, 62, 92, 108–9, 159, 167

  blacklisting of farmers in, 84

  consolidation of power in, 22, 25, 56, 79, 100, 108, 110, 111, 231, 232–233, 235, 266, 269, 270, 271, 275, 313; see also vertical integration

  co-op model experiment in, 272–75

  corporate oligarchy in, 67, 108, 110, 114, 115, 136, 231, 232, 233, 235, 266, 271, 273, 274, 275, 313

  early days of, 52, 53, 54–55, 66–67, 85, 92, 140

  emergence of contract farming in, 68, 70, 71

  fast-food markets in expansion of, 95, 107, 152, 242

  feed mills in, see feed mills

  government regulation in, 68, 254, 275–76, 302

  hatcheries in, see hatcheries

  hog farming system modeled on, 149, 150, 151, 152–53, 154–55, 168, 183, 192

  lawsuits filed in, 32, 101, 121, 269, 271n, 283

  lobbyist groups in, 251, 285, 286, 291–92, 295

  loss of open, competitive market in, 5, 79, 108, 110, 136–37, 237, 238, 271, 275

  1961 financial crisis and, 76–81, 195, 266

  rise and growth of, 52, 53, 54–55, 58, 62, 65, 66–67, 76, 92, 95, 100, 107, 140, 152, 208, 230, 265

  slaughterhouses in, 2, 8, 11, 22, 23, 46, 59–61, 62, 76, 81, 83, 87, 92, 93, 102, 106, 107, 110, 160–61, 162, 169–70, 226, 269, 273, 306, 312, 318

  Smithfield Foods’ dominance in, 168

  specialty products in, 30–31, 86–87, 91, 95, 106–7, 163, 274

  2008 financial crisis and, 264–65, 266, 267–68, 270, 271, 272, 305

  Tyson’s business model and, 5, 78, 92, 93, 102, 110, 111, 149, 152

  Tyson’s dominance in, 108, 110, 111, 114, 145, 159, 169, 174, 180, 233, 235, 266, 273, 281n

  vertical integration in, 5, 20–22, 25, 55–56, 58, 61, 62, 65, 66, 78, 81, 93, 109, 110, 115, 172, 226, 230, 231, 242, 270, 275, 287, 294

  volatile market cycles in, 53, 54–55, 66, 70, 76, 78, 79, 81, 91–92, 95, 98, 100, 102, 149, 313

  see also chicken farming, industrial; meat industry; Tyson Foods

  “Powered by Tyson” campaign, 178, 180

  price discovery, 203

  Proctor and Gamble, 176

  Producer Protection Act (2000), 244, 245, 250, 252, 263, 283

  Purtle, David, 104–6

  racial discrimination, 119, 120, 141

  Radintz, Jim, 143

  RAFI-USA, 317–18

  Ralston Purina, 53, 79, 84

  Randall Foods, 232

  Ranger Feeders, 219

  R-CALF USA, 317

  Regions Bank, 141, 142

  Republican Party, 165, 268, 282, 289, 290, 302

  Richardson, Eunice, 292–93

  Roberts, Pat, 300–301, 302

  Rockefeller, John, 249

  Romero, Ramona, 297

  Roosevelt, Teddy, 4

  Roper, Gary, 33–34, 44, 104, 126–27

  rural economies, U.S., 1, 2, 8, 48, 49–50, 51, 145–46, 165, 199, 235–36, 251, 257, 270, 280, 283, 291, 317, 318, 319

  “chickenization” of, 145, 196

  corporate consolidation’s effect on, 229–33, 316

  decline of small towns and, 10, 11–12, 198, 223–24, 232–33, 262, 281

  government emergency programs for, 57–58, 234–35

  in Great Depression, 47, 49, 50, 51, 57, 58

  income patters of, 314, 315, 316, 317

  influx of immigrants in, 45–46

  loss of independent businesses in, 5, 194–95, 196–97, 202, 205, 281, 298

  loss of open, competitive markets and, 5, 191, 195, 200, 201–5, 315

  1998 collapse of pork market and, 195–97, 199

  Obama administration’s attempts in reviving of, 281, 296; see also GIPSA rule

  poverty rate in, 281

  in pre-industrialized agriculture era, 186–87

  smalltown dependency on corporations in, 1, 2, 8, 21, 315

  Tyson’s reshaping of, 3, 5, 6, 9–10, 11–13, 46, 67, 106, 111, 145, 180–81, 191, 227, 288, 312, 314–16

  unemployment rates in, 156, 281, 297

  Vilsack’s optimistic depiction of, 297–98, 303

  Wal-Mart and, 262, 316

  sales stations, 200–201, 202, 238

  Scott, David, 290–91

  Scott County, Ark., 10, 11, 25, 26, 34, 41, 319

  Scott County Movie Theater, 10–11

  Scott County Tractor, 118

  Seafood Group, 159, 164, 167

  seafood industry, 159, 164

  Securities and Exchange Commission, 176

  seed industry, 235

  select-grade beef, 215, 222

  Senate, U.S., 251, 290, 301, 302

  Sents, Allan, 226

  serfdom, 49, 231, 237

  settlement sheets, 115–17, 121, 256

  Simmons, 76

  Skeen, Jerry, 102–4

  Skeets, Larry, 142

  slaughterhouses, 1, 2, 5, 11, 19, 21, 26, 33, 36, 66, 72, 81, 98, 103, 110, 118, 125, 132n, 160–61, 177, 180, 240, 270, 288, 311, 314, 316

  in beef industry, 169–70, 172, 174, 211–12, 215, 221, 224, 226, 311

  chemicals used at, 8

  equipment in, 22, 23, 60, 87, 107, 312

  government inspection of, 61, 87

  of IBP, 169–70, 172, 174

  immigrant workers in, 46, 212, 317

  livestock farmers’ small selling window with, 190

  in pork industry, 157, 171, 183, 187, 189, 190, 195, 196, 201, 203, 311

  in poultry industry, 2, 8, 11, 22, 23, 46, 59–61, 62, 76, 81, 83, 87, 92, 93, 102, 106, 107, 110, 160–61, 162, 169–70, 226, 269, 273, 306, 312, 318

  “ruralization” of, 169–70

  Tyson’s first construction of, 60–61, 62, 169–70

  unionized workers in, 169, 170

  Smith, Donnie, 264–68, 270, 271

  as CEO of Tyson Foods, 305, 311–12, 313

  Smithfield Foods, 164, 167–68, 169, 174, 189, 195, 196, 202, 204, 240–45, 251, 261, 285, 286, 293

  Miller’s legal battles against, 236, 241–44, 245, 253–54, 255, 287

  Miller’s settlement with, 255–57, 270, 280

  Murphy Farms acquisition of, 240–41, 242, 243

  South Dakota, 168, 177, 195, 253, 305

  sow farms, 156–57, 192, 193

  soybeans, 166, 173, 186, 187, 229, 243, 265, 308

  Springdale, Ark., 11, 48, 51, 53, 55, 68, 88, 97, 110, 111, 169, 177, 192

  construction of first Tyson slaughterhouse in, 60–61

  Don Tyson’s estate in, 305, 306

  John Tyson’s funeral in, 88

  Neal’s Café in, 62, 87, 91

  orchard economy in, 48, 51–52

  Tyson family’s prestige in, 66

  Tyson Feed’s first offices in, 58, 63–64, 65, 74

  Tyson headquarters in, 4, 11, 20, 21, 30, 33, 81, 89, 92, 94, 96, 100, 159, 162, 163, 168, 177, 179, 180, 264, 265–66

  Starr, Joe Fred, 70, 94, 96

  in weekly managers’ meetings, 74, 75–76, 92–93

  Stephens Inc., 99

  Stika, John, 225

  stock market, 276–77

  crash of 1929, 47

  Stoecker, Randall, 243

  Swift & Company, 76, 84, 169

  see also JBS Swift

  Tabor, Eric, 234, 235–37, 240, 241, 242, 243, 244–45, 253, 255, 287

  pro-regulation speech of, 244–46, 247

  Tax Reform Act (1986), 73–74

  Taylor, C. Robert, 121, 132

  Tea Party movement, 290

  tenant farming, 55–56

  tenders, chicken, 106–7

  Texas, 143, 144, 208, 219, 288, 307

 
Thomas, John, 193–94

  Tollett, Leland, 74, 96, 160, 264, 305, 306

  as CEO of Tyson Foods, 162–63

  in internal coup at Tyson Foods, 178–79

  in weekly managers’ meetings, 74, 92

  turkey farming, 236, 272, 274

  Turkey Federation, The, 251

  Tyson, Cheryl, 309

  Tyson, Don, 48, 56, 57, 63, 64, 65–67, 68–69, 70, 72, 82, 87, 97, 98, 99, 106, 157, 168, 170, 174, 264, 270, 305–6

  in bringing chicken into fast-food markets, 91–92, 93–95, 107

  charisma of, 160–61

  childhood of, 51, 53–54, 111, 161, 310

  “Class B” shares owned by, 162

  control over Tyson Food’s maintained by, 162, 163, 178–79, 305–6

  cost-cutting ethos of, 59, 60, 67, 78, 179–80

  death and funeral of, 309–10, 312

  declining health of, 305, 306–7, 308, 309

  education of, 53, 59

  employee loyalty fostered by, 161

  estate of, 305, 306

  estate planning of, 166–67

  expansionist ambitions of, 64, 75, 81–82, 85–86, 99–100, 110, 111, 145–46, 152, 155, 159, 308

  experimental hog farms of, 149–50, 152

  father’s business lunches with, 62, 87, 91

  father’s death and, 88–89

  as field technician, 59, 69

  final arrangements made by, 305–6

  first slaughterhouse project overseen by, 60–62

  fishing and boating of, 160, 307–8

  in hostile acquisition deals, 99, 100–102

  IBP merger opposed by, 174–75, 176

  as industry visionary, 58, 59, 60, 65–66, 68, 75, 81, 86, 91, 93, 163, 310

  internal coup at Tyson and, 178–80

  legacy of, 310–11

  market-downturn survival strategies of, 77–79, 86, 100, 179–80

  1961 financial crisis and, 77–81, 266

  public-offering decision of, 80–81

  risk-taking and money borrowing of, 58–59, 61, 66, 67, 75, 78, 81, 98

  in stepping away from daily operations, 159–60, 162, 163, 166

  tutoring of son in family business by, 161–62

  in weekly managers’ meetings, 74–76, 77, 87, 89, 92–93, 96

  Tyson, Helen, 53, 54, 88

  Tyson, Jean, 306

  Tyson, John, 46, 47–48, 50, 51, 53, 57, 58, 59, 60, 61, 63, 66, 72, 74, 80, 82, 85, 87, 92, 111, 161, 174, 270

  cautious approach of, 58, 67, 75, 89, 175

  control of chicken farms sought by, 54–56

  death of, 88–89

  debt payments and depreciation rule of, 75, 100, 175

  Don’s business lunches with, 62, 87, 91

  feed business of, 53–54, 55, 56

  firing of workers by, 56, 61

  as focused on material side of business, 87–88

 

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