Keeping meat packing plants open is a top priority, but right behind it, is market transparency.
The National Cattlemen’s Beef Association says it is a complicated issue which is why they asked the USDA to investigate.
The reason for this is because the major meat packers are making big profits on cattle and the producers are missing out. They agree the industry needs more gas trade for price discover, but they say plans requiring 30-50 percent cash trade volume could hinder the industry more than help it, if it is not done properly.
“Our concern is doing a blanket across the board percentage that is mandated by the government. Our luck with mandates from Congress, especially on market issues, isn’t all that great,” NCBA CEO Colin Woodall said. “Typically if you have a mandate that congress implements, it takes a long time to roll back, if it doesn’t work the way you want it to.”
The NCBA paid for and authorized a study by Colorado State University to see how many cattle in each state would be traded on a negotiated basis and it found each state is different. The group is working to find the best methods to increase cash market activity without causing financial harm to the industry.