USDA's final mandatory price
reporting rule will create an enormous burden
on meat packers and provide few off-setting
benefits to anyone in the livestock or meat
industry. AMI has long opposed mandatory price
reporting and continues to believe that
voluntary price reporting programs have
provided adequate information without being
unduly burdensome.
The mandatory price
reporting law was passed by Congress in
response to fluctuations in the livestock price
cycle - fluctuations that AMI and most
economists attribute to fundamental laws of
supply and demand. These fluctuations are the
result of classic, economic cycles and cannot
be remedied simply by reporting more
data.
Although the Agricultural
Marketing Service (AMS) modified the rule in
response to some of industry’s concerns
stated in comments, problems remain. Those
problems include extremely tight reporting and
information turnaround times, the fact that
packers may not always have complete
information at the reporting deadline and the
overly broad reporting provisions for some
categories, which exceed the intent of
Congress.
Only time will tell what
the precise impact of the law will be. AMI
speculates that a year from now, AMS will
have amassed massive quantities of data that
are of little benefit to anyone in the
livestock sector, while imposing significant
costs on the packing sector, and potentially
upon the consumer. None of this will serve to
increase demand – the real key to economic
success for everyone involved in meat
production and distribution.
AMI
represents the interests of packers and
processors of beef, pork, lamb, veal and turkey
products and their suppliers throughout North
America. Headquartered in Washington, DC, the
Institute provides legislative, regulatory and
public relations services, conducts scientific
and economic research, offers marketing and
technical assistance and sponsors education
programs.
Statement on Final Mandatory Price Reporting Rule
Thursday, November 30, 2000
For more information contact:
Janet Riley Vice President, Public Affairs 703-841-2400 jriley@meatinstitute.org |
Josee Daoust Manager, Public Affairs 703-841-2400 jdaoust@meatinstitute.org |

