The most modern beef plant in the nation was purchasing USDA inspected beef to reprocess into hamburger patties inspected and sold as USDA approved and passed product — then 16 people in Colorado contracted some degree of digestive upset caused by undercooked E.coli-tainted hamburger purchased as twice-inspected USDA beef. Consequently, Hudson Foods was pressured by Secretary of Agriculture Dan Glickman, failed Kansas cattleman, who, possibly goaded (certainly not halted) by the Clinton Administration and the "Hope Cartel," brought the wrath of the media and government agencies against James T. Hudson and his Fortune 500 company.

The consequence was that on Thursday, September 4, 1997, Hudson announced an agreement had been signed with Tyson Foods, the world’s largest poultry producer, to purchase Hudson Foods. The beef plant had been sold to IBP. Companies are bought and sold every day, mergers and acquisitions are normal in the corporate world — however, this acquisition smells very similar to old road kill on a hot summer day — skunk, at that. Is it possible that chicken mogul Don Tyson, whose company is guilty of favors to former Secretary of Agriculture Espy, saw an opportunity, called his compadres in Washington and said, "This is the opening that will give me Hudson Foods on a platter — put the pressure on them?" Whatever the scenario, it worked — James T. Hudson and Hudson Foods folded during its 25th anniversary year and Tyson Foods has the company they have been trying to buy for at least 12 years.

The scene is now set for a "chicken" monopoly in the United States, certainly several regional monopolies, which means that Tyson will control the vast majority of pullets, breeder hens, and broilers being placed with contract growers in certain geographical locations.

This merger of Tyson and Hudson will place Tyson’s published weekly average of ready-to-cook (RTC) production at 154.8 million pounds. By spring of 1998, one of Hudson’s complexes will be producing an additional seven million RTC pounds weekly, and there is expansion room within the current Hudson operations to produce an additional 9-10 million pounds weekly. Tyson currently controls 8-10 million additional pounds in a cost-plus contract with Choctaw Maid in Carthage, MS. This is not to mention Tyson’s new Union City, TN complex that will be producing another 4-5 million RTC pounds or more per week next year. Now, lets play the devil’s advocate and add these pounds together. This figure amounts to roughly 185.8 million RTC pounds per week. The next six largest companies (Gold Kist, Perdue, Con Agra, Pilgrim’s Pride, Wayne Poultry/Continental Grain, and Cagle’s) added together produce 196.6 million RTC pounds weekly. Tyson’s weekly production will be 3.76 times greater than the next closest company, Gold Kist, a huge co-op with headquarters in Atlanta, Ga.

The Federal Trade Commission and the SEC are supposed to regulate mergers and acquisitions based on a national monopoly, as well as the effect an acquisition of this nature will have on regional and geographical areas. Well, forget all that — the fat lady sang, the curtain is down and the light are off. Regional poultry growers — beware — moreover, stay within the good graces of Tyson.

This letter does not just concern two chicken companies — that’s right, beef accounted for less than seven percent of Hudson’s gross sales — but rather misdirected governmental control, undue pressure by governmental agencies and lack of control in imported foods.

After the beef recall and prior to Hudson’s sale to Tyson, Glickman was going to northwest Arkansas to inspect chicken houses. What the @#*! does Glickman know about chicken coops? He couldn’t even raise cattle. After Tyson’s purchase of Hudson, Glickman’s chicken house inspection tour has been canceled. However, Washington has put together a task force of several government agencies that are currently undergoing training to serve as a unified group to inspect some 20 Arkansas poultry complexes and their processing plants. All poultry plants in the U.S. are USDA inspected. All food products that leave the plants, approved for human consumption, are USDA inspected. Furthermore, the five Arkansas sites that are deemed to be the "worst" among the 20 will receive additional harassment by these governmental agencies moving into an on-site trailer and setting up shop for several months.

This undue attention to a closely regulated industry is truly amazing when within the last two weeks, CNN Headline News reported in a "factoid" that only 1.2 percent of all imported foods are inspected, a complete breech of safety for the consuming public. Enough is enough.

An even more disturbing fact is that with advanced technology in the form of genetic fingerprinting, governmental sleuths can now trace a bacteria such as E.coli 0157:H7 from the food supply back to the feedlot, then to the farm or ranch as the original source, if they so desire. What happens when there is another E.coli outbreak and Hudson Foods is no longer around to be the fall guy? If the outbreak is caused by tainted alfalfa sprouts and another 100 people get sick, probably nothing will happen. But, if it can be related and traced to animal agriculture, then it can be traced to a farm, ranch or feedlot. This will be comparable to the government declaring the site a nuclear waste dump. Roy Rancher or Fred Farmer will be devastated — his land and livestock worthless — but he will merit a visit from several governmental agencies or maybe from His Highness Glickman in person.

Much of this has already been printed, with good added speculation, on page 14 of the September 11, 1997 Livestock Weekly. What is the concern of this whole issue? Governmental control, governmental control, and more governmental control precipitated by power-hungry, empire-building bureaucrats in a system that is gradually departing from "of the people, by the people and for the people," to policies envisioned and implemented in Europe during the first half of this century.

Mr. Rancher — Mr. Farmer — Mr. Livestock Producer — Mr. Poultry Grower — wake up and smell the roses before you are buried under more tons of governmental red tape and regulated into financial disaster by people in Washington who don’t know sheep manure from Arbuckle’s coffee.

H.L. Perez
Montgomery, Alabama

Dear Sir,
The City of Hereford, Texas, has decided to let the federal government know from the start that the citizens of this small Panhandle town are not interested in allowing Washington to intrude into local government affairs. The Hereford City Council has signed and sent to U.S. and State Senators and Representatives and the President's Council on Environmental Quality, a "Resolution of Non-Support" for the American Heritage Rivers Initiative. It states in part:

"We oppose the intervention of the federal government, agencies and employees into our local zoning, planning, land use and water authority. We will not submit nor support any petition for federal designation of a river in our community for the American Heritage Rivers Initiative, nor shall we enter into any agreement with the federal government concerning the same federal designation within the boundaries of our jurisdiction."

This new government program is supposed to be grassroots driven with attention given to local concerns and interests. However, it is to be expected that groups such as American Rivers will be part of the process, along with other non-government organizations, which dims the likelihood that local residents will provide the impetus for nomination of their own rivers. In fact, Texas Land Commissioner Gary Mauro leaped right in to nominate the entire Rio Grande, from Brownsville to El Paso. That can hardly be construed as locally inspired.

The American Heritage Rivers Initiative will create a new federal nexus requiring consideration of effects taken by federal officials upon the American Heritage Rivers. Federal action covers a broad array of activities and will probably have a detrimental impact on private property owners in that the nexus establishes the right of the lead agency to intervene and argue against any development which it claims could adversely affect an American Heritage River. This may not be confined to public areas, but could very well include private projects on private land using private funds.

Lest there be doubt about the dimensions of the program, quoting the Federal Register notice: "scope of the area covered by nomination" may include "an entire watershed, the length of an entire river, or a short stretch of river." The entire watershed of the Rio Grande. How many acres is it? The Rio Grande begins in Colorado, runs through New Mexico on its way through Texas to the Gulf of Mexico! That can only translate into millions of acres.

It doesn't take much imagination to realize the exercise of federal responsibilities will use this wonderful new land and water control tool to insinuate regulations into all facets of business and private property.

The President is once again silencing the voice of the people in detouring Congress by using an executive order to sign this program into law. The good people of Hereford, Texas, recognize that all issues are local and that solutions to problems must come from those most affected.

Marty McElhaney
McElhaney Cattle Co.
Hereford, Texas