WASHINGTON — The U.S. Senate Committee on Agriculture, Nutrition, & Forestry formally announced it will convene a hearing on the state of the U.S. livestock industry. “A Review of the U.S. Livestock and Poultry Sectors: Marketplace Opportunities and Challenges” will be heard on Thursday, May 26th at 10:00am in the Hart Senate Office Building.
The United States Cattlemen’s Association (USCA) called on Congress to investigate the current state of the livestock industry. Following the largest loss of equity in the history of the U.S. cattle industry, USCA has requested an in-depth review at the possible components contributing to ongoing market volatility.
USCA has requested U.S. Senate Committee on Agriculture, Nutrition, & Forestry Chairman Pat Roberts and Ranking Member Debbie Stabenow to convene a hearing focused on the contributing factors to the market collapse and its current state, including: algorithmic and anti-competitive buying practices, consumer confusion, ongoing block of funding for a final GIPSA rule, and additional industry concerns.
USCA President Danni Beer stated, “2015 saw record-breaking prices, followed by a swift and significant collapse which we are still experiencing today. The volatility of the market has created unintended consequences for U.S. cattle producers, and one in need of immediate review. The livestock industry is historically a fluctuating marketplace, dependent on domestic and international policies, consumer trends and fiscal realities. However, the radical fluctuations experienced in less than a 12 month span have raised concern by those across the industry.”
“Responsible policies guiding our product are essential for the market to operate at an optimal level. The continued and increased use of algorithmic trading, coupled with anti-competitive buying practices and now, a block of funding for a final GIPSA rule, have placed U.S. cattle producers at a severe disadvantage. The additional loss of origin information and subsequent consumer confusion in the marketplace, along with additional industry concerns on the horizon have created a highly volatile market for producers.”
“The countryside has brought their concerns before Congress. In order to once again establish and maintain a viable market, USCA has requested the U.S. Senate Committee on Agriculture, Nutrition & Forestry to immediately convene a hearing focused on the multiple factors resulting in the current state of the industry. USCA looks forward to working with the Senate Committee, Chairman and Ranking Member, in addressing the issues at hand and reestablishing confidence and transparency in the U.S. livestock market.”
Following today’s hearing announcement, USCA President Danni Beer stated, “The countryside called on Congress, and Congress answered. USCA looks forward to working with Chairman Roberts, Ranking Member Stabenow and Committee staff in preparation for the hearing.”
“As we identify and address the multiple issues contributing to today’s market volatility, USCA is confident that concrete solutions can be reached to once again achieve and maintain market stability.”
A live video of the hearing will be available HERE on Thursday May 26, 2016 starting at 10 am EST.
Source: United States Cattlemen’s Association