NCBA PUSHES CONGRESS FOR MEAT LABELING, PRICE REPORTING

WASHINGTON, D.C. (July 23, 1998) – The U.S. Congress could help improve the bottom line for struggling cattle producers by approving meat labeling legislation and mandatory price reporting for boxed beef and beef exports, the National Cattlemen's Beef Association (NCBA) said today.

NCBA President Clark Willingham of Dallas, Texas, urged support for the measures in a letter sent today to all House and Senate members who will be meeting in conference to approve a final version of the bill to provide funding for agricultural programs. Both meat labeling and price reporting provisions were attached last week to the Senate Agricultural Appropriations bill.

"The bipartisan, meat labeling measure will addresses a frustration among U.S. producers who question why beef cattle imported into the United States for immediate slaughter are marketed as U.S. beef," Willingham said. "Import labeling will help differentiate products in the retail meat case and increase competition among product lines."

The provision would require beef to be labeled as "U.S. beef" or "imported beef." During 1997, beef imports were equal to about nine percent of total U.S. beef production. Most of this imported beef was blended into ground beef or processed beef products, or was sold at the retail meat case as U.S. product. In addition to beef imports, nearly 1.1 million live cattle were imported from Canada directly to U.S. packing plants during 1997. Although the value-added production took place in Canada, once these cattle were processed in the United States they were effectively sold as U.S. beef.

Increased availability of market information helps ensure that competitive market forces exist and that even a limited number of buyers cannot have undue leverage in the market, Willingham said.

USDA data shows that during 1997 the four largest U.S. packers slaughtered 80 percent of all steers and heifers marketed. Current concentration levels now exceed levels that triggered regulatory action during the 1920's.

NCBA is working to modify the proposed legislation, including the removal of a measure that would mandate price reporting for live cattle, to be consistent with all price-reporting aspects of NCBA policy.

"While the current, longstanding deficiencies in accurate, timely reporting of beef exports, and incomplete price information for boxed beef create a competitive disadvantage for U.S. cattle producers relative to the highly concentrated packing sector and to other major beef exporting countries," Willingham added. "I don't think we need to add additional reporting burdens on cattle producers."

– NCBA –

Initiated in 1898, the National Cattlemen’s Beef Association 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.