Cattle industry looks to increase price discovery
The executive vice president of the Missouri Cattlemen’s Association says the USDA’s report on its investigation into cattle markets supports the need for change.
Mike Deering tells Brownfield the report shows the distribution of profit between producers and meat packers is unknown.
“We have to take bold measures and we have to move forward with making some changes in LMR and other avenues that allow for robust price discovery.”
He said on top of changes to Livestock Mandatory Reporting, more negotiated trade is needed…
“Do we want to hope for the best and hope that the packers participate more in negotiated cash trade,” Deering said. “Or, do we need to take bigger measures and look at a regulatory or a legislative amendment to LMR to compel the packers to do that?”
He said while a voluntary price discovery system might be best, other options need to be available if a voluntary system doesn’t work. Deering said price discovery was one of the main discussion points at the National Cattlemen’s annual meeting in Denver this week.