Regarding concerns and opposition with the GIPSA rule. First, I went to the hearing in Ft.Collins and have read many posted comments that support -as I do - the "clarification" on the rule. I think this is where many in the media and some producers are out of touch with the reality of what needs to be addressed. By large margin - it was accepted by the majority of producers that "something needed corrected and cleaned up."
Regarding packers unprofitability, has anyone asked any USPB stockholder how bad the profits have been? I know several who deposited "thousands upon thousands" into banks (I am glad they made money.). Go to USPB's website and get the details on how good of a business model it has been (We wish there were 50 more). It's in the USA and it's profitable. Then follow up on why more people don't get into the business. Remember that economic rule of "market access?" As a valid example, go build a retail store ,compete against Walmart in a small town, and you'll find out.
Some, within the U.S.Cattle industry, constantly cut down USA producers and fight against COOL. Shouldn't we all promote USA BEEF with a Country of Origin Label (COOL)? We have asked producer funded "Beef Checkoff" for help... but get NOTHING. Seems the bureacracy of a fraternity doesn't get it (it's alot like GIPSA, it needs cleaned up).
Those who say it's the retailer who controls the packers... simply don't get it. I stated at the GIPSA hearing if it were so, just ban packer ownership or feeding of cattle for more than 14 days... then see who has the market power. If packers are losing all this money why don't we just hire them to process our cattle? I pay a local processor (who slaughters my cattle) a pretty healthy fee. So why not the big packers, if they are losing money? Would they not then become profitable? Do they then lose control?
Theoretically the retail system is already in place... is it not? So now we could then just go another 14 days for a check when the retail side is sold. I would say simply that "producers would regain the marketing power they have lost by those who think they are "special" and sleep with the packers".
We all have different interests, and with that comes diversity. That is good as long as we all have a fair shot in a open and competitive marketing environment.
One thing for sure "we have the best consumers of beef in the world! I hope someday we give them the very best USA BEEF that is available!
Mike Schultz
Cattle producer,
R-CALF USA Country of Origin Labeling Committee Chairman
Brewster, Ks.