7/23/2006

R-CALF: Cattle Producers Listen to Industry Leaders in Reno

Reno, Nev. – For the second consecutive year, cattle producers across the country recently met in Reno, Nev., at an R-CALF USA regional meeting hosted by Region IV Director Jon Wooster. R-CALF USA leaders, President and Region V Director Chuck Kiker, CEO Bill Bullard, and Director of Government Relations Jess Peterson, discussed concerns about USDA’s proposed National Animal Identification System (NAIS), captive-supply cattle and various international trade agreements, as well as the organization’s support of Mandatory Country-of-Origin Labeling (M-COOL) and more protections against bovine spongiform encephalopathy (BSE).

Bullard explained the conditions that caused the formation of R-CALF USA. He said the industry suffered through a dozen years of depressed prices, during which producers underwent unprecedented herd liquidation - despite the fact that during this period, beef consumption in the U.S. grew significantly since 1993, demand increased, and retail beef prices were hitting all-time highs. The cattle market was not responding properly to competitive market signals, he said.

“Consumers desire beef, and we need to capitalize on that as a competitive industry,” Bullard stated. “The reason it took so long for live cattle prices to respond favorably – after 11 years of increased beef consumption and 6 years of increased beef demand – was because meat packers were interfering with the competitive market by capturing the demand signals that should have been driving domestic cattle prices higher, and they were satisfying the increased consumption and increased demand with growing volumes of undifferentiated imported cattle and imported beef, and they were managing domestic prices with their captive-supply cattle.

“In 2003, the first discovery of BSE in Canada broke the packers’ stronghold over the market by cutting off for over two years their access to Canadian bone-in beef and cattle,” said Bullard. “Imagine where your prices would be today if the USDA, packers, and NCBA had not banded together to lift the injunction that disallowed the importation of Canadian cattle.

“We need to build our organization so it is large enough and strong enough to protect the interests of U.S. cattle producers,” Bullard noted. “If we don’t do it, no one else will. We have gone too long without producers receiving their competitive share of the consumer’s beef dollar.”

Peterson spoke about R-CALF USA’s 2005 and 2006 legislative, regulatory and trade victories. He said resolutions of disapproval are rare, yet, in 2005, the U.S. Senate passed a resolution of disapproval on USDA’s Final Rule, which allowed the resumption of Canadian cattle and beef imports.

“R-CALF’s litigation against USDA’s Final Rule has increased USDA’s accountability and has limited the meat packers’ ability to interfere with our markets,” Peterson said. “R-CALF worked to block a single private entity from controlling Animal ID, which ensured that existing state and group systems are still being considered, and that the program is kept voluntary. All mandatory language has now been removed from the USDA proposal.”

Peterson then gave an update on R-CALF USA’s continuous work to represent cattle producers in free trade agreements (FTAs) so that competitive safeguards are included and cattle producers are not undermined by models similar to the U.S.-Australia FTA.

“R-CALF USA opposed the U.S.-Central American FTA (CAFTA) because it fell short of a proper model,” he said. “CAFTA became the closest FTA vote in history, in both the House and Senate. Now, the Administration is working harder to address the concerns of cattle producers on FTAs.”

Kiker spoke about his recent trip to Australia to observe its mandatory Animal ID program. He noted the system has been in place two years and it is not working. Many of the identification numbers do not make it into the government database.

“The numbers are not matching up,” he said. “For instance, if someone owns 30,000 head, the database might say 45,000. When producers upload identification numbers, they sometimes get error codes and can spend hours trying to straighten out the problem.”

Kiker also addressed R-CALF USA’s positions on international trade. He said R-CALF USA is not against trade, but when a trade agreement disadvantages the industry, then someone needs to represent producers in Washington, D.C., and let Congress know about it. The playing field needs to be level and producers must be able to compete, he said.

“USA born, raised and slaughtered is the greatest brand U.S. cattle producers will ever own,” continued Kiker. “We have meetings, such as these, to get producers’ input so that we have the correct position – the position that represents U.S. cattle producers.

“Our position is your position,” he emphasized. “We are just producers. We are not radicals or extremists. We are cattle producers working to guarantee that our interests are represented in Washington, D.C., to ensure the continued profitability and viability of the U.S. cattle producer.”

R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) represents thousands of U.S. cattle producers on domestic and international trade and marketing issues. R-CALF USA, a national, non-profit organization, is dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. R-CALF USA's membership consists primarily of cow/calf operators, cattle backgrounders, and feedlot owners. Its members - over 18,000 strong - are located in 47 states, and the organization has over 60 local and state association affiliates, from both cattle and farm organizations. Various main street businesses are associate members of R-CALF USA. For more information, visit www.r-calfusa.com  or, call 406-252-2516.