Feeder files lawsuit

ST. FRANCIS -- St. Francis cattle feeder Mike Callicrate has filed a lawsuit in U.S. District Court in Kansas City against a meat packer whose practices Callicrate claims is forcing his feedlot to close.

Callicrate's lawsuit alleges Farmland National Beef quit buying cattle from Callicrate because he publicly criticized Farmland and other large meat packers for having too much market power.

The Kansas City Star and St. Francis Herald report the lawsuit seeks actual damages of $5,345,000, punitive damages and attorney fees.

Callicrate's lawsuit is similar to a complaint filed by the U.S. Department of Agriculture against Farmland National Beef, of Kansas City, in 1999. The USDA alleged then that National Beef used its market muscle to retaliate against Callicrate.

Farmland National Beef is a partnership of Kansas City-based Farmland Industries Inc. and U.S. Premium Beef Ltd. It operates beef processing plants in Dodge City and Liberal, Kan.

The USDA dropped its 1999 complaint last year after National Beef agreed to repay the government the costs of the investigation.

Callicrate claims that administrative action did not keep Farmland from continuing to refuse to buy cattle from him at competitive prices.

Callicrate said he has had to let 12 employees go, and he now must close his feed yard.

"None of the meat packers will buy from me," Callicrate said in a story in the Kansas City Star, reprinted in the St. Francis newspaper.

John Miller, chief executive of Farmland, said when Farmland National Beef settled the complaint with the USDA, the agency's order found that National Beef was not required to buy from any particular producer.

"National Beef owes an obligation to its customers and owners to buy the highest-quality cattle at the lowest possible price," Miller said.

Callicrate has been an active critic of the consolidation in the meat processing industry, which has concentrated about 80 percent of that business in the hands of four major companies. Farmland National Beef is the country's fourth-largest beef processing company.

Callicrate was a plaintiff in a class-action lawsuit against meat packer IBP for allegedly uncompetitive practices at the time Farmland began its boycott of the Callicrate feed yards.

Callicrate said Farmland National Beef has the closest meat processing plant to his yards and does most of the cattle buying in the area. Callicrate said the company was his main customer for 12 years before it essentially stopped buying from him in 1998 after he and an employee spoke out against prices National Beef was offering to cattle ranchers who sold direct to the company.

The new lawsuit alleges National Beef violates the Packers and Stockyards Act of 1921 and the Kansas Consumer Protection Act. Both acts forbid retaliation against a critic, boycotting a cattle feeder and engaging in any act or practice to promote a monopoly.

David Domina, the Omaha attorney who filed the lawsuit for Callicrate, said the fact the federal government settled the USDA complaint without finding fault does not prevent Callicrate from filing his own action.

Domina said he believes there has been no political will for years to enforce federal laws against anti-competitive practices in the meat industry.

Callicrate said, "This is why other people won't speak out. As a result, we are going to lose our markets and our domestic cattle industry."