The NCBA Regional Triggers Report
The National Cattlemen’s Beef Association recently released its proposal to improve price discovery without mandating participation by producers or packers.
NCBA President-Elect Jerry Bohn (bone) explains...
The report also identifies several qualifications each region will need to achieve to avoid tripping price triggers:
Achieve no less than 75% of the weekly negotiated trade volume that current academic literature indicates is necessary for “robust” price discovery in that specific region,
Achieve this negotiated trade threshold no less than 75% of the reporting weeks in a quarter,
Achieve no less than 75% of the weekly packer participation requirements, to be determined in short order, and assigned to each specific region,
Achieve this packer participation threshold no less than 75% of the reporting weeks in a quarter.
NCBA is pursuing this voluntary approach in an effort to avoid government intervention through a legislative or regulatory remedy. Smith, however, notes that if the voluntary approach fails to achieve the price discovery sought by the industry, NCBA would be open to considering legislative solutions.