HELENA, Mont. (Aug 4, 2020) – Last week, the Montana Stockgrowers Association leadership attended NCBA’s Summer Meeting to develop policy and meet with other states across the nation to discuss the issues facing the cattle industry.
One of the more prominent issues
of discussion was the extreme market degradation to the producer segment,
followed by sharp increases and unseasonal profitability of the packing segment
through boxed beef prices.
MSGA has actively participated on
an industry wide working group over the past six months, to develop and examine
potential ways to achieve robust price discovery in the cattle market.
Two policies were brought to the
Live Cattle Marketing Committee regarding fed cattle price discovery. Neither
policy explicitly mentioned legislation like 30/14 or 50/14 but where more
broadly addressing whether or not policy should allow the cattle market to be
addressed by legislation and regulations or by voluntary, industry-led efforts.
After a lengthy debate, a
compromise was struck which allows for a continued “voluntary” approach. This
compromise includes specific time frames and triggers to ensure action will be
taken if the voluntary approach does not produce the expected change. By
October 1, 2020, the working group will determine triggers, which will evaluate
if robust price discovery has been accomplished or if there is a need to pursue
a legislative or regulatory approach.
The policy passed by the Live Cattle Marketing Committee can be viewed here.
Director of Marketing & Communications
To view more MSGA news, visit https://mtbeef.org/news/