Great Falls - Earlier this month, member leaders of American Farm Bureau Federation, National Cattlemen’s Beef Association, National Farmers Union, R-CALF USA, and the United States Cattlemen’s Association met in
Record Packer Profits: Details Emerge from Closed Door Meeting
Wednesday May 19th, 2021 On Monday, May 10, 2021, member leaders of American Farm Bureau Federation, National Cattlemen’s Beef Association, National Farmers Union, R-CALF USA, and the United States Cattlemen’s Association met in Phoenix, Arizona.
These groups convened at the request of the Livestock Marketing Association to discuss challenges involved in the marketing of finished cattle with the ultimate goal of bringing about a more financially sustainable situation for cattle feeders and cow-calf producers.
The group talked openly and candidly about a wide range of important issues facing our industry today, including but not limited to:
Cattle producers have faced significant challenges over the last few years. And as Brett Crosby, fifth-generation cattle rancher from Wyoming, explains, 2020 was a tipping point for everybody.
Crosby, who also serves as a board member of the U.S. Cattlemen’s Association, was one of just under two dozen members of the cattle industry who came together May 10 at the request of the Livestock Marketing Association to discuss challenges involved in the marketing of finished cattle with the ultimate goal of bringing about a more financially sustainable situation for cattle feeders and cow-calf producers.
Four meatpacking companies control over 80% of the cattle processing industry. “This simple fact leaves the cattle industry particularly vulnerable to market disruptions,” says Randy Feenstra, R-Iowa, while speaking about the cattle market challenges during a House Agriculture Committee discussion on May 18.
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Level of captive supply, and
Packer capacity.
The group also agreed to take to their respective organizations for consideration these action items:
Expedite the renewal of USDA’s Livestock Mandatory Reporting (LMR), including formula base prices subject to the same reporting requirements as negotiated cash and the creation of a contract library.
Demand the Department of Justice (DOJ) issue a public investigation status report and as warranted, conduct joint DOJ and USDA oversight of packer activity moving forward.
Encourage investment in, and development of, new independent, local, and regional packers.
This unprecedented meeting brought together diverse producer organizations to identify issues and discuss potential solutions. These issues and action item lists are not comprehensive, due to time constraints of this meeting. Attending organization representatives were pleased to have reached consensus on many issues and are committed to the ultimate goal of achieving a fair a