Record Packer Profits: Details Emerge from Closed Door Meeting
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:
Price transparency and discovery,
Packers and Stockyards Act enforcement,
Level of captive supply, and
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 and transparent finished cattle marketing system.
Source: American Farm Bureau Federation, LMA, NCBA, NFU, R-CALF USA and U.S. Cattlemen's Association