Proponents of the Pickett v. IBP antitrust decision may see the industry change dramatically, albeit differently than they either intended or hoped. If the antitrust verdict against Tyson stands and packers are prohibited from buying cattle with formu las, forward contracts and other mechanisms outside the spot cash market, ironically, the price at the center of the controversy could be the least affected and the least of producer concerns. Before jumping into that, however, a few ground rules. Forget for a minute whether you're for or against the jury decision that found Tyson (actually IBP before Tyson bought them) guilty of a class-action lawsuit forged on the grounds of the Packers and Stockyards Act of 1921. In essence, plaintiffs argued and the jury agreed that the captive supplies IBP created through formulas and contracts allowed it to depress cash-market prices, thereby causing financial harm to anyone selling cattle to IBP on a cash basis.
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