SALEM — The Oregon Cattlemen’s Association reported its board of directors voted to support a concept called “30/14” to require a minimum 30% of each packer processing plant’s weekly volume of beef slaughter to come as a result of purchases made on the open market, defined under a Negotiated Purchase Agreement.
“Four of the largest packing companies in the United States, Tyson Foods, JBS, Cargill and National Beef, have owned more than 80% of the packing capabilities in our country,” the association stated in a news release. “This monopolistic percentage has gained and continues to gain unprecedented control of cash markets, flow of cattle, and the retail beef pricing structures.”
The beef processor has been enjoying higher and higher profits, according to the OCA, while the rest of the cattle industry hurts for revenue and has no opportunity for leverage.
“This has led to wild market volatility,” the association continued.
The OCA wrote a letter to U.S. Department of Agriculture officials recommending 30/14 to encourage fair, competitive and transparent markets.
The Livestock Mandatory Reporting Program is due for legislative reauthorization Sept. 30.
To learn more about the association’s recommendations for market changes, read the letter at www.orcattle.com.