NCBA: More price discovery is needed, but not through government mandate
The CEO of the National Cattlemen’s Beef Association says the organization wants to see more price discovery and an increase in cash trade.
But as Colin Woodall tells Brownfield a government mandate isn’t the way to do it. “Depending upon what region you’re in, depends upon how much cash trade you need to have in order to have true price discovery,” he says. “Our concern is a blanket 50 percent across the country might work in some areas, but it wouldn’t necessarily be a true national fit.”
He says historically the organization shies away from government decisions and mandates related to cattle markets. “Our past experience has been you can have the best of intentions but usually, Congressional legislation and government action doesn’t always work out the way you would like it to work out,” he says. “And then you spend a lot of time trying to fix the unintended consequences. And that’s what we’re trying to be careful of here.”
Woodall says the organization has established a cash market working group to look at price discovery and cash trade and what the industry can do to find solutions.
AUDIO: Colin Woodall, CEO – National Cattlemen’s Beef Association