05/12/05 Packer ownership ban

Packer Ownership Ban There is a new attempt to ban beef packers from owning cattle. I'm Jeff Keane; I'll tell you about it right after this. Eight U.S. Senators have introduced bipartisan legislation that would ban beef packers from owning, feeding, or controlling cattle for more than seven business days before slaughter. Ken Salazar, senator from Colorado states the legislation goal is to "&check vertical integration, create open and competitive markets, and ensure a place for the independent producers in the marketplace." A new study shows control over cattle markets by the four major meat packers in the U.S. has increased to 82%. According to U.S. Department of Agriculture statistics, Nebraska has seen a 16% increase in feedlots of 1000 head or more since a state ban on packer ownership has been in effect. In Texas, where there is no packer ownership prohibition feedlots of 1000 head or more declined three per cent in the same time frame. Opponents to the ban are, of course, packers and some livestock organizations that feel a ban will prohibit marketing agreements that producers have with packers. Proponents of the legislation believe making packers bid on cattle in the open market will increase competitiveness within the industry that will filter down from the packers to feedlot owners to producers. While we all know we need the packers, the cattle producers have needed relief from their control of the market for many years now. I'm Jeff Keane. Western Livestock Reporter 4/27/05