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1 1 SENATE CONCURRENT RESOLUTION NO. ___
1 2 BY HALVORSON
1 3 (COMPANION TO LSB 1944HH BY CORMACK)
1 4 A Concurrent Resolution urging the Federal Trade Com-
1 5 mission to amend a consent agreement that would
1 6 require the divestiture of the Fort Dodge Friskies
1 7 PetCare Plant.
1 8 WHEREAS, the Federal Trade Commission has published
1 9 an agreement containing a consent order, file number
1 10 941-0124, dealing with the proposed acquisition of
1 11 Alpo by Nestle Food Company; and
1 12 WHEREAS, Nestle Food Company owns a processing
1 13 facility in Fort Dodge, Iowa, operating as Friskies
1 14 PetCare Products; and
1 15 WHEREAS, the consent order requires Nestle to
1 16 divest the Fort Dodge Friskies PetCare plant within 12
1 17 months; and
1 18 WHEREAS, Friskies PetCare Products has operated in
1 19 Fort Dodge for more than 19 years and has been an
1 20 excellent corporate citizen, providing good jobs and
1 21 benefits to 141 employees; and
1 22 WHEREAS, the direct economic impact of the Friskies
1 23 plant in Webster County and Fort Dodge approaches $100
1 24 million per year; and
1 25 WHEREAS, the complaint filed with the Federal Trade
1 26 Commission alleges that the acquisition of Alpo by the
1 27 Nestle Food Company will eliminate substantial actual
1 28 competition between Nestle and Alpo, increase the
1 29 likelihood that Nestle will unilaterally exercise
1 30 market power in the relevant market, and increase the
2 1 likelihood of, or facilitate collusion or coordinated
2 2 interaction among, firms in the relevant market; and
2 3 WHEREAS, the relevant market in the complaint is
2 4 the manufacture and production of canned cat food for
2 5 the geographic market of the United States of America;
2 6 and
2 7 WHEREAS, the Fort Dodge facility produces
2 8 24,000,000 cases of canned pet food per year of which
2 9 66 percent is canned cat food and 33 percent is canned
2 10 dog food; and
2 11 WHEREAS, Nestle officials have stated that they
2 12 will increase the production at other Nestle-owned
2 13 plants to replace the lost production from the sale of
2 14 the Fort Dodge plant; and
2 15 WHEREAS, the Federal Trade Commission has indicated
2 16 that it is unlikely that it will allow the sale of the
2 17 Fort Dodge plant to any other major competitor in the
2 18 pet food industry; and
2 19 WHEREAS, the citizens of Fort Dodge and Webster
2 20 County, the Mayor and City Council of Fort Dodge, the
2 21 Webster County Board of Supervisors, the employees of
2 22 Friskies, and the Webster County Industrial
2 23 Development Commission all believe that the remedy
2 24 proposed by the Federal Trade Commission will not
2 25 accomplish the stated goals, and will, in fact, result
2 26 in the loss of 141 good jobs in Fort Dodge and have a
2 27 disastrous effect on the local economy, including the
2 28 loss of more than $200,000 per year in Iowa sales
2 29 taxes; NOW THEREFORE,
2 30 BE IT RESOLVED BY THE SENATE, THE HOUSE OF
3 1 REPRESENTATIVES CONCURRING, That the Federal Trade
3 2 Commission is urged to amend the agreement containing
3 3 consent order, file number 941-0124, so that Nestle is
3 4 not required to divest itself of the Fort Dodge
3 5 Friskies PetCare Plant; and
3 6 BE IT FURTHER RESOLVED, That the entire Iowa
3 7 congressional delegation, Governor Branstad, and the
3 8 Director of the Iowa Department of Economic
3 9 Development are urged to support the citizens of Fort
3 10 Dodge in their efforts to appeal to the Federal Trade
3 11 Commission to amend the consent order; and
3 12 BE IT FURTHER RESOLVED, That copies of this
3 13 resolution be sent to the Governor, the President of
3 14 the United States, the President of the United States
3 15 Senate, the Speaker of the United States House of
3 16 Representatives, the Chairperson of the Federal Trade
3 17 Commission, and members of the Iowa congressional
3 18 delegation.
3 19 LSB 1944SS 76
3 20 mj/jw/5
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