Video: Blumenthal Cracks Down on High Egg & Grocery Prices at Antitrust AAG Nominations Hearing, Calls for Aggressive Action to Combat Consolidation in Food Industry

[WASHINGTON, DC] – Today, U.S. Senator Richard Blumenthal (D-CT) raised the rapid increase in egg, meat, and dairy prices as a result of widespread monopolies in the food industry while questioning Gail Slater, nominee to be an Assistant Attorney General for the antitrust division during her Senate Judiciary Committee Nomination Hearing. Blumenthal called for action to combat rising prices, citing the impact of rapid price increases on consumers and producers.

“I want to talk about egg prices and about groceries and about the cost of food. We have seen a rampant, rapid increase over the last year, but really over the past years, in the prices of food in the United States. The result of rampant, rapid consolidation in meat, dairy, and, yes, eggs. This most recent increase in egg prices is not the first—in fact, it’s the culmination of a gradual increase which in turn has produced rising profits in that industry and other food related industries, from the processors to the agricultural industry,” said Blumenthal. “It has squeezed farmers, processors, and consumers.”

Blumenthal called on Slater to take action and challenge consolidation in the food industry, saying, “I want to see you take a tough, unyielding, aggressive approach to crack down on consolidation and monopoly power and the misuse of that power in the industry. Because that’s the reason ultimately that consumers are frustrated and furious right now. And it's not only consumers, it’s farmers and it’s small businesses.”

A transcript of Blumenthal’s full remarks can be found below, and a video of his remarks can be found here.

U.S. Senator Richard Blumenthal (D-CT): Well, let me take the antitrust division. Ms. Slater, you need attorneys and economists and staff to pursue antitrust cases, don’t you?

Abigail Slater: Yes, Senator.

Blumenthal: And what if the President’s executive order means a one quarter cut in the resources available to your unit? Won't that undermine your enforcement efforts?

Slater: Well, Senator, like Mr. Blanche, I am not in the building, so I am not fully aware of what’s going on inside the Department of Justice.

Blumenthal: But you know from having worked with that division how deeply resources matter. We know, because I have enforced antitrust statutes as Attorney General of the state of Connecticut, that antitrust is one of the resource intensive prosecutions in the government.

Slater: I’d absolutely agree with that. And if I could, Senator, I think what this discussion has opened up is an opportunity for me to talk about the merger, finding fees, modernization, legislation, which I know many members of this Committee –

Blumenthal: Well, I am going to interrupt with apologies because my time is very limited.

Slater: Okay.

Blumenthal: And I’ll yield to the Chairman if he wants to give me more time. But I want to talk about egg prices and about groceries and about the cost of food. We have seen a rampant, rapid increase over the last year, but really over the past years, in the prices of food in the United States. The result of rampant, rapid consolidation in meat, dairy, and, yes, eggs. This most recent increase in egg prices is not the first—in fact, it’s the culmination of a gradual increase which in turn has produced rising profits in that industry and other food related industries, from the processors to the agricultural industry. It has squeezed farmers, processors, and consumers. What will you do about it?

Slater: So, Senator, with regard to the eggs, I think it is important also to understand and see that we’ve had a supply-side shock in the form of avian flu on egg supply. So I think that’s an important factor, but broadly I agree–

Blumenthal: It’s one factor, but not even the most important factor. What are you going to do about the consolidation in the industry?

Slater: So what I will say is we have already been tasked by the White House via presidential memorandum to look closely into ways in which we can work to reduce consumer prices. Because it is a very pressing issue. I absolutely agree with you on that. That’s an administration-wide presidential memorandum. And so, to the fullest extent possible, I will absolutely focus on that.

Blumenthal: Well, I want to see you fully focus on the industry, not on the memorandum. I want to see you take a tough, unyielding, aggressive approach to crack down on consolidation and monopoly power and the misuse of that power in the industry. Because that’s the reason ultimately that consumers are frustrated and furious right now. And it's not only consumers, it’s farmers and it’s small businesses. Thank you, Mr. Chairman.

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