Jayapal Hosts Field Hearing on Corporate Consolidation, Rising Food Prices

SEATTLE, WA - U.S. Representative Pramila Jayapal (WA-07), co-chair of the Monopoly Busters Caucus, hosted a field hearing with Representatives Kim Schrier (WA-08), Val Hoyle (OR-04), and Emily Randall (WA-06) titled From Farm to Kitchen Table: How Consolidation Spikes Food Prices. They were joined at this hearing by Governor Bob Ferguson and Seattle Deputy Mayor Brian Surratt.

"I was proud to be hosting this hearing to address consolidation in one of the most basic necessities of our lives: food," said Jayapal. "We have all seen prices of groceries skyrocketing in recent years. For decades, corporations have swallowed up smaller competitors to the point that they can now raise prices and reduce choice without consequence - from the farms where the food is sourced, to the factory where the food is manufactured and distributed, and to the grocery store where the food is sold to American consumers. It is time that we address this consolidation head-on. This hearing is a first step towards understanding and addressing the root cause of why our economy has failed to deliver affordable food for Americans."

"With 4 large corporations controlling nearly 70% of the grocery market, consumers are at the mercy of a system built to return shareholder profits and not one working in the best interest of consumers, suppliers, farmers, or local economies," said Rep. Hoyle. "The facts are clear: mergers and lack of competition increase prices for us, lower quality and consumer choice, and reduce the prices that local farmers and manufacturers can charge to cover their costs."

"When private equity firms control hospitals, nursing homes, emergency room staffing, like when they invest in grocery stores, they use that power to cut care, raise prices, and sacrifice the impact on individuals…to line their own pockets," said Rep. Randall. "That's why I fought hospital and health system consolidation here in Washington state. And that's why I'm excited to be a part of the Monopoly Busters Caucus to work on grocery store consolidation and health care consolidation in the other Washington."

This hearing was a deep dive into a major root cause of rising food prices for consumers: corporate consolidation. From farms and food production to grocery store shelves, consolidation exists at every level, allowing a handful of corporations immense control over costs to drive out small businesses, farmers, and independent grocers. Testimony was heard at this hearing from Former Assistant Attorney General Jonathan Kanter, Mike Callicrate, an Independent Cattle Producer, Cynthia Duran, Founder of Xinca Foods, Melissa Rose, an Employee at Fred Meyer Grocery and a UFCW 3000 Member, and Emily Chase, the Co-Owner of Chase's Market.

"Monopolies throughout our food supply chain have hollowed out rural communities, pushed family farms to the brink, and forced independent grocers out of business. Many of the tools we need have been on the books for more than a century. Now we just need the will to act," said Jonathan Kanter.

"Rural America is being crushed by farming and food monopolists. We either control their power and rebuild local/regional food infrastructure or we will be depending on the benevolence of foreign corporations to feed us," said Mike Callicrate.

"If we care about entrepreneurship, local jobs, food affordability, and consumer choice, then we must care about who is actually able to participate in the market. I urge you to stand with small businesses like mine and help ensure that the American Dream is not something we talk about in the past tense, but something future founders can still realistically pursue," said Cynthia Duran.

"As a result of consolidation, corporate has been running skeleton crews at our store for years. Running that lean makes it harder to deliver the level of service our customers deserve, and it leads to exhaustion and burnout for workers," said Melissa Rose.

"When independents lose access or pay more for the same goods, survival becomes harder. When independents are squeezed, food becomes more expensive, choices disappear, and access shrinks," said Emily Chase.

In conjunction with the hearing, the Institute for Local Self-Reliance released an interactive map showing food deserts, nationally and by congressional district, alongside the location of different types of grocery stores - independent, small chains, large chains, and megachains like Walmart and Kroger. The map was accompanied by a policy brief explaining how failure to enforce federal antitrust laws triggered widespread consolidation in the grocery industry, leading directly to the proliferation of food deserts and persistently high food prices across the United States.

Issues: Jobs, Labor, & the Economy, Science, Technology, & Antitrust