Are federal authorities finally taking the idea that a few companies shouldn't be allowed to dominate the food system seriously?
Well, the Federal Trade Commission recently blocked Whole Foods from gobbling up rival natural foods marketer Wild Oats. Congratulations to the FTC for busting up the natural-foods trust!
But even combined, Whole Foods and Wild Oats would account for only 15 percent of natural-foods sales. Meanwhile, Smithfield Foods alone now controls 30 percent of the pork market after acquiring Premium Standard Farms a month ago -- a deal that the Department of Justice waved on. In fact, our food production system is full of examples of market concentration that make the Whole Foods/Wild Oats tie-up look like small (organic, heirloom) potatoes.
Given such brazen inconsistencies, Congress needs to step in and give the executive branch some direction when applying antitrust theory to food companies. Adding a Competition Title to the Farm Bill would do just that.