PIERRE — The Senate Ag Committee held a hearing on Wednesday to look at issues in the cattle market. Testimony addressed packer concentration and the lack of competition, recent supply chain disruptions, limited processing capacity and changes in the amount of Alternative Marketing Arrangements verses negotiated cash cattle trade. South Dakota Senator John Thune says they were looking for answers to the huge disconnect in the market that has packers making record margins at the expense of producers and consumers…
Thune says this isn’t a new problem, but with the lack of competition lawmakers need to step in with a solution…
Thune anticipates follow up hearing that will include the packing industry so they can shed some light on the impact the oligopoly in beef processing is having on other sectors of the food chain…
Various bills have already been introduced to mandate more negotiated cash cattle, create a formula contract library, increase market transparency, expand processing and ask for another DOJ investigation.
