Meat Industry Scheduled to Take Center Stage on Capitol Hill
Meat Industry Hearing 062321
Later today the meatpacking industry will take center stage on Capitol Hill as members of the Senate Ag Committee hold a hearing designed to take a deep dive into the cattle markets amid accusations of price imbalances.
Among the list of speakers for today’s meeting are Justin Tupper of the U.S. Cattlemen's Association and economist Glynn Tonsor of Kansas State University.
This hearing comes on the heels of an event AgDay first reported on last month: an unprecedented meeting among major cattle industry representatives.
Six groups, including NCBA, R-CALF, U.S. Cattlemen's Association, American Farm Bureau, National Farmers Union and the Livestock Marketing Association all took part. The groups are typically at odds but are working together with the goal of bringing about what they see as a more financially sustainable situation for cattle feeders and cow-calf producers.
“Unfortunately, these farmers are facing tough times. Independent cattle farmers are losing money on each head of cattle while packers are profiting $1,200 per head,” says Senator Chuck Grassley (R-Iowa). “Now, that was one week. Another week they were profiting $800, but can you believe $800 or $1,200 when the price at the at the consumer hasn't gone down any and the farmers are losing money? These farmers have every reason to be fed up with the anti-competitive practices in the marketplace."
The North American Meat Institute, which represents meat companies, reports the big four beef processors' share of the market has held roughly steady for 25 years. It says some cattle producers earned record profits as recently as 2014. One official saying recent low prices for cattle ranchers showed fundamental market forces at work, as disruptions closed meat plants, leaving a greater supply of cattle on the market and pushing down livestock prices.
Sarah Little, the Vice President of Communications issuing the following statement ahead of today's hearing: "We look forward to hearing the witnesses' testimony. We will be submitting detailed written testimony that proves market fundamentals drive the cattle and beef markets, and we are prepared to discuss these issues and work with the Committee on the issues facing the industry."
Today's hearing gets underway at 2:30 p.m. Eastern time. You can watch it live here: https://www.agriculture.senate.gov/hearings/examining-markets-transparency-and-prices-from-cattle-producer-to-consumer
