Osborn says Tyson plant closure violates antitrust law, calls for federal action

LEXINGTON, Neb. — U.S. Senate candidate Dan Osborn traveled to Lexington Tuesday, arguing Tyson’s planned closure of its beef-processing plant violates federal law and will cause widespread economic fallout across Central Nebraska.

“I know what it feels like, what these folks are going through right now. When I heard the news of this plant closure, a lot of emotions were coming through me because I’ve been in their shoes before,” said Osborn.

He also said the shutdown breaks the Packers and Stockyards Act, which prohibits meatpackers from manipulating prices or restraining competition.

The Lexington facility represents about 5% of the nation’s beef-processing capacity and more than 15% of Nebraska’s regional capacity, according to Osborn.

He said closing the plant rather than selling it reduces competition for cattle, drives down prices for ranchers and contributes to record-high beef prices for consumers.

Antitrust attorney Basel Musharbash backed that assessment, saying federal agencies can legally force Tyson to keep the plant operating or sell it to a competitor willing to run it.

Musharbash said “By shutting down a plant that slaughters such a large portion of the cattle in this region and the country, Tyson will singlehandedly reshape the nation’s cattle markets from boom to bust. With this single decision, Tyson will cut down demand for the cattle raised by ranchers around the country, reducing the number of buyers competing for that cattle. As a result ranchers will be forced to accept lower prices, and Tyson will be able to make higher profits.”

Officials estimate the closure will eliminate about 3,200 jobs in a community of roughly 11,000, with ripple effects for housing, schools, local businesses and area agriculture.

Osborn surged Nebraska’s federal delegation to contact the USDA, Department of Justice and the FTC to intervene immediately.