CONGRESS APPROVES MARKET REPORTING PILOT PROGRAMS

WASHINGTON, D.C. (October 21, 1998) – Congress today gave final approval to a measure that implements two price reporting pilot programs, one that covers those who market a significant share of fed cattle and beef, and another that covers export market reporting. The pilot programs are expected to lead to more timely market information for cattle producers, the National Cattlemen's Beef Association (NCBA) said.

"Once the information becomes available, price reporting will increase market transparency for cattle producers by giving them the best, most complete information possible with which to make their marketing decisions," said NCBA President Clark Willingham, Dallas, Texas. "It's not everything we wanted, but it is a positive first step in laying the groundwork for permanent, mandatory price reporting for boxed beef and exports."

"Since increasing marketing opportunities for producers is a priority for NCBA, we plan to work closely with the Secretary of Agriculture to ensure that the price reporting program is beneficial to cattle producers," he added.

The mandatory price reporting provision amends the Packers & Stockyards Act to establish a 12-month pilot study on mandatory price reporting. It would require:

1. any person or class of persons who buy, sell or market a significant share of domestic or imported fed cattle and fresh muscle cuts to report price information for these products,
2. the Secretary of Agriculture to make a final report to Congress within six months of the conclusion of the pilot on the effectiveness of the program, and
3. that no information collected under the pilot investigation be disclosed until the report is submitted.

Another provision establishes a 12-month export market reporting pilot program which directs the Secretary of Agriculture to establish a streamlined, electronic system for issuing meat product export certificates and disseminate summary data from these certificates within two weeks of issuance.

"NCBA will work with the 106^th Congress to achieve better availability of market information for our cattle producers," Willingham said.

-- NCBA --

Initiated in 1898, NCBA is the marketing organization and trade association for America’s one million cattle farmers and ranchers. With offices in Denver, Chicago and Washington D.C., NCBA is a consumer-focused, producer-directed organization representing the largest segment of the nation’s food and fiber industry.