Producers chime in on 'adverse effect' ruling

A lawsuit brought by poultry producers against Pilgrim's Pride is gaining a lot of attention after the 5th Circuit Court of Appeals ruled that a producer does not have to show an adverse effect on competition to take legal action under the Packers and Stockyards Act. That ruling, which upheld the Texarkana Division of the Eastern District of Texas court ruling in the case, is in contrast to how other courts have long interpreted the act. Some courts have required that any plaintiff under the act must demonstrate "an adverse effect on competition." The brief argues that these decisions are contrary to the explicit language of the statute and congressional intent. "The current question before this court will have a dramatic effect on key provisions of the Packers and Stockyards Act allowing farmers and ranchers to enforce the act's protections," the brief states...read more