USCA Director Leo McDonnell Addresses CICA
Membership During Summer Meeting

During his speech McDonnell reflected on a discussion he led in Colorado nearly a decade ago during the live cattle trade cases, pointing out that the need to build a national voice for ranchers, one in which every decision made is based on what is best for U.S. ranchers, has not changed in ten years. "Other segments of the food industry chain like retailers, wholesalers, meat packers and cattle feeders have strong organizations representing their segment's interests," noted McDonnell. "U.S. live cattle producers deserve the same level of representation with leadership at the helm who are focused on the things that will impact cattle producers."

"Ten years ago we talked about problems with international trade and our domestic markets. At that time we were seeing imports increase at a faster rate than the U.S. cow herd was declining and the supply impact was literally hammering our markets," he stated. "We talked about failed trade policy and we were told we needed 'to give access to get access'. The problem is the rest of the world did not follow and we saw our agriculture trade surplus go from nearly $25 billion in the 1990's, according to the Department of Commerce, to a $3.5 billion deficit just a few years ago. Obviously, a weaker U.S. dollar has improved this somewhat."

"Back then we discussed the lack of identity for our product - U.S. beef - in both domestic and international markets and the fact that it is impossible to capture real or perceived added value for a product if the product isn't identified. We discussed the fact that the Department of Commerce had reported that no other industry had increased faster in concentration during the last 20 years than the U.S. packing industry. We talked about the record spread increase for the six years following 1993 between retail and producer prices. The price spread had shrunk from 56% in 1993 to 43% in 2000, more than a $200 loss in the producer share of the retail dollar," continued McDonnell.

"More importantly, we talked about solutions and those included a national organization for ranchers, country of origin labeling, interstate shipment of meat, developing special trade rules for cattle and beef, building a strong, respected and continuous presence in Washington, DC, and taking the time to build relationships not only on Capitol Hill, but also within the industry's regulating agencies."

McDonnell said it amazes him to reflect over the past ten years and see the accomplishments made. "We were told that we could not get country of origin labeling or interstate shipment of beef passed. We discovered that our greatest opposition was not from elected officials; instead it emanated from groups within our own industry who claimed to represent ranchers."

McDonnell congratulated CICA members for their work to establish and grow an organization dedicated to finding solutions to the issues and making a difference. "You've made a difference when it comes to pushing back on national animal identification," he noted. "There can be no good that comes out of a government program that uses children to force their parents to comply. CICA has made a big difference in the private property rights arena as well because you have strong, determined leadership who are working day in and day out on the issues."

"The country of origin labeling rule will be released by the Office of Management and Budget soon. Danni Beer of South Dakota has been leading the charge on COOL for cattle producers for years. Danni has committed thousands of hours of her time and resources to work with the National Farmers Union to build the largest coalition in history to get this legislation passed," said McDonnell.

"If it weren't for the efforts of a handful of ranchers in 2002 who developed the first-ever Cattle Chapter in the Farm Bill, the recent passage of an interstate shipment of state inspected meat provision and the teeing up of several competition issues including the packer ownership ban would never have happened," he continued. "With the threat of JBS purchasing additional packing and feeding facilities in the U.S., those competition concerns are escalating."

McDonnell discussed USCA's work in encouraging Congress to amend the Beef Research and Information Act (Beef Checkoff) to devote a portion of checkoff funds for U.S. beef promotion, and to change the contracting agent criteria to permit organizations founded after 1986 to be eligible. "Too often, checkoff programs are tied closely to the National Cattlemen's Beef Association (NCBA)," cautioned McDonnell. "Producers have asked that a clearer separation be made in the checkoff governance system and we must stay focused on achieving that goal if we expect to see a significant return on our checkoff investments. USCA hopes Congress will act upon these requests and introduce legislation to address them."

"Our economy cannot afford the risks of liberalizing our import standards to accommodate nations like Argentina," said McDonnell. "It makes little sense from an animal health safety or sound science position to lower the standards of exposure to such highly contagious disease like foot and mouth disease, while at the same time saddling U.S. cattlemen with a multibillion dollar national animal identification program to track such diseases when they are introduced into the U.S. Since when did USDA's disease control move from prevention to managing diseases," McDonnell asked.

McDonnell concluded by thanking ranchers for becoming engaged and encouraged them to join the U.S. Cattlemen's Association if they haven't already. "USCA has a daily presence in Washington, DC where we've developed a strong voice for U.S. ranchers. USCA is working hard to protect your interests. Every decision made at USCA is with the best interests of cattle producers as the priority and with respect for your hard-earned dues dollars. USCA has been very successful in delivering key legislation and rulemaking to address producers' concerns and advance their issues. We invite you to join the effort."

Established in March 2007, USCA is committed to concentrating its efforts in Washington, DC to enhance and expand the cattle industry's voice on Capitol Hill. USCA has a full-time presence in Washington, giving cattle producers across the country a strong influence on policy development. For more information go to www.uscattlemen.org.

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