Bush Budget Includes Funds for Packer Audit

President Bush’s budget plan for fiscal year 2004 includes $1 million for USDA to conduct a packer audit.  The purpose would be to gain a better understanding of the economic workings of an industry where four packers control about 80 percent of slaughter steers and heifers.

“This should help USDA and producers better understand the financial situation and practices of the packing industry,” said Bryan Dierlam, NCBA director of Legislative Affairs.  “NCBA will work with Congress to ensure that this funding is made available through the appropriations process.”

NCBA succeeded in getting Congress to approve $4.5 million in funding in the fiscal year 2003 Appropriations Bill for a broad-based study on the meat protein segment of the economy.  NCBA will work with USDA to make sure the study satisfies producers’ concerns.  The study could include captive supply, packer ownership and successful business models.