The North American Meat Institute is campaigning against federal government proposals to force market-ready beef cattle to be sold in open bidding.
It would end contracting between producers and packers.
Institute president Julie Anna Potts said this is not about transparency, as the government says, but “is about the government dictating how cattle may be bought and sold.”
She said it’s farmers who want contracting so that prices reflect their efforts to improve genetics and other traits.
She said open markets still establish industry pricing which is at record high levels.
Potts said “cattle production operations are not all the same and the cattle they produce are not one-size-fits all. Moving back in time to a commodity cattle market will reduce competition, innovation, and quality, ultimately hurting the entire industry. Livestock producers ought to be rewarded for their innovation in the marketplace.”
On the other hand, the farmers pressing for the new regulations point to class-action lawsuits against the largest beef packers, claiming they collude to rig the markets for cattle and beef.
