Monday, August 30, 2010

Colorado meeting illustrates divide over future of cattle industry

A Friday meeting in Fort Collins, Colo., about competition in the agriculture industry was met with equal support by both sides of the argument for and against further government regulation. "About half the audience supported sweeping change in how the government regulates the ailing cattle industry," Jason Blevins of The Denver Post reports. "The other half bemoaned the possibility of more regulation they fear will clog the industry with lawsuits and curtail cattlemen's ability to harvest top dollar for their herds." The meeting, hosted by Attorney General Eric Holder and Agriculture Secretary Tom Vilsack, was the fourth of five workshops about agricultural issues scheduled across the country.

"At the center of the arguments are new rules floated by the Obama administration that would make the powerful meatpacking companies — Tyson Foods, JBS, National Beef and Cargill — provide evidence supporting the prices paid for contracted cattle and give small ranchers more opportunities to contest that pricing," Blevins writes. Some ranchers say the rise in sales from the big four companies from 20 percent of all sales a decade ago to half in 2010 helps them by getting top dollar for their beef. Others say the consolidation leaves ranchers without the ability to fairly negotiate prices.

"While the two ideologies clashed, there was agreement on many issues, including the trouble facing the nation's cattle industry," Blevins writes. "The number of American cattle farms has dropped from 1.6 million in 1980 to 950,000 today. In 1980, cattlemen earned 62 cents for each dollar spent on their beef. Today, they get 42 cents." Some, including Robbie LeValley, president of the Colorado Cattlemen's Association, said the key to fixing the cattle industry was both sides working together. "We should not be circling the wagons and shooting inward," she said. (Read more)

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