Government data and economic analyses show that the U.S. meat packing industry is dynamic and competitive.
For that reason American Meat Institute President J. Patrick Boyle told the House Committee on Agriculture, Subcommittee on Livestock, Dairy, and Poultry that the U.S. meat packing industry will oppose legislative and regulatory efforts to restrict livestock marketing and meat packing procurement opportunities that have helped grow the industry and provided consumers the most affordable meat supply in the world.
Boyle told committee members that the many marketing options available today – such as spot market transactions, production contracts, cooperatives, bargaining associations and marketing agreements – provide producers the ability to diversify or concentrate their marketing plan to best match their skills, experiences, capital base or tolerance of weather and price risks. Many producers and packers enter these types of arrangements, Boyle said, in order to manage price risks to aid in the access of credit and capital.
Boyle also noted that consumers have benefited from improved efficiencies – including increased diversity in the meat case and more competitive prices at the supermarket.
In his testimony, Boyle also cited two recently released studies – both mandated by Congress – that affirm AMI’s assessment of the competitive and rational nature of the livestock and meat market, as well as the resulting benefits to American consumers.
Source: American Meat Institute (AMI)