Cattle Market Reform

Cattle-producing areas have become some of the poverty-stricken in our nation.  Lack of income to cattle producers is the result of anti-competitive practices in the cattle industry.  Today just three companies slaughter over 80% of the nation’s cattle.  These companies are able to use their market power to create a “captive supply” of cattle they never have to bid for.  They do this by pressuring the federal government to keep the Canadian border open despite the risk of “mad cow” disease, by fighting country-of-origin labeling, by owning increasing numbers of feeder cattle themselves, and by forcing cattle feeders to accept forward contracts without a fixed base price.  Their monopolistic efforts hurt rural communities and prevent consumer choice.

Captive supply reform.  DRC asked the U.S. Department of Agriculture in 1996 to stop anti-competitive practices in cattle buying by writing new rules under the Packers and Stockyards Act of 1921 to ban secret forward contracts without a fixed base price.  We are still waiting for an answer.  In the meantime, DRC has worked with the North Dakota Congressional delegation to introduce legislation to stop this practice. 

Stop the latest big pork merger.  The latest industry move to consolidate the meat industry is the proposed merger of Smithfield and Premium Standard, the nation’s two largest pork producers.  DRC has joined National Farmers Union and others in calling for an antitrust investigation. 

The next farm bill.  Within the next two years, Congress will be deliberating new comprehensive farm legislation.  Consumers and cattle producers won a big victory in the last farm bill debate when country-of-origin labeling was made the law of the land.  Unfortunately, the cattle monopoly has successfully prevented enforcement.  Congress needs to include a strong competition title in the next farm bill that includes not only country-of-origin labeling but also captive supply reform and a ban on packer ownership of cattle. 

Buy local beef.  North Dakota cattle producers in every corner of the state are willing to work with consumers who want to buy locally-produced beef.  This practice benefits both the consumer and the rancher.  Consumers get a pure, delicious product, and ranchers get a better price by eliminating the “middle man.”  Call DRC at 701-483-2851 for suggestions about who to contact in your area.

Join DRC.  You can help fight for fair markets and more wholesome meat by joining DRC.