What is NCBA's view of government involvement in the marketplace?
Stop Government Intrusion in the Marketplace
- The government should not be in the business of manipulating domestic supply, cost or price.
- The most effective way for industry and Congress to ensure the marketplace stays fair and competitive is through the enforcement of current law, including the Packers and Stockyards Act (PSA).
- USDA’s enforcement of PSA and other anti-trust laws and regulations are critical in identifying, investigating, and prosecuting anti-competitive actions by packers, dealers, markets, and others who fall under its jurisdiction.
How do innovative marketing arrangements allow producers to meet consumer demand?
- Value-added marketing programs allow cattle producers to maximize profitability by getting paid for the value they add to their cattle.
- These programs allow producers to be rewarded for investing in cattle genetic improvements and herd-management practices in order to produce high-quality cattle which they can then sell for a premium through a marketing arrangement.
- This enables producers to stay in control of their own businesses, as “price makers” rather than “price takers.”
- A recent 3 ½-year study by the Grain Inspection Packers and Stockyards Administration (GIPSA) overwhelming concluded that alternative marketing arrangements help all sectors of the industry, not just those that participate.
- The report also found that alternative marketing arrangements gave producers the ability to buy or sell higher quality cattle; improve supply chain management; and obtain better prices. And conversely, reductions or restrictions on alternative marketing arrangements would cause a decrease in the supply of cattle; a decrease in the supply and quality of beef; and an increase in retail beef prices.
At the end of the day, we are not just cattle producers, we are beef producers, and we must be in tune with our consumers’ preferences at local retail meat cases.
What type of marketplace does NCBA support?
NCBA Supports Free-Market Principles
- Cattle producers, like other businesses, support free-market principles in the buying and selling of their products.
- We rely on federal regulators to ensure that the marketplace is free from anti-trust, collusion, price fixing, and other illegal activities that damage the viability of the market and interfere with market signals.
- It’s important that we maintain a business and regulatory climate that ensures commerce is fair, open, transparent, and not overly burdensome.