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Today, a small handful of corporations dominate the nation’s food supply. The market control of the top four firms in food retailing and grain, red meat, poultry and milk processing is at a historic high.
Three meat packers now slaughter over 80% of the fat cattle in the U.S. This unprecedented level of market consolidation effectively eliminates free market competition to the detriment of independent family farmers and consumers.
Furthermore, the public policies shaping the U.S. farm and food system are failing the family farmers and ranchers who produce our food. Farmers and ranchers have lost income and independence. Too many have lost their farms and ranches to a system favoring multi-national corporations.
Fair and open livestock markets enable farmers and ranchers, feeders and auction yard owners to keep their independence, run their businesses, provide for their families, and build their rural communities.
WORC members are stepping up to return competition to the livestock markets and economic viability to family farmers and ranchers and their rural communities.
Captive Supply
The Captive Supply Reform Act, S. 1017, would return fair competition to livestock markets by
- Requiring contracts and agreements have fixed base prices
- Requiring trading of contracts in open, public markets to which all buyers and sellers have access
S. 1017 would restore competition because packers would bid against each other and livestock producers would bid against each other to win contracts.
More on Captive Supply.
The livestock market is broken. Big meat packers are taking advantage of honest, hardworking family farmers and ranchers by manipulating the price they pay for livestock.
Fair and open livestock markets enable farmers and rancher, auction yard owners and feeders to keep their independence, run their businesses, provide for their families and build their rural communities.
t’s time to fix the broken livestock market.
Congress is deciding funding for the Community Foods Projects in the 2007 Farm Bill. This effective program provides grants to local communities to build the infrastructure to support local foods processing and markets. The House-passed Farm Bill made the funds for this highly valued program optional. Congress should continue funding at $5 million a year.
Read commentary on the risk to the local food program.
The 2002 Farm Bill required mandatory Country-of-Origin Labeling of beef, lamb, pork, fish, fresh and frozen fruits and vegetables, and peanuts by September 2004. A label stating the food’s country of origin would be placed on foods sold in grocery stores. To date, only seafood and shellfish bear a label.
Learn more about Mandatory Country-of-Origin Labeling
Prohibition on Packer Owned Livestock
Allowing packers to own the animals they slaughter reduces competition for livestock raised by independent farmers and ranchers. The deadly combination of high market concentration and the increased use of captive supplies - livestock owned outright by packers or controlled through contracts with farmers and ranchers - has meant lower prices, a smaller share of the retail dollar and shrinking livestock markets for farmers and ranchers.
Learn more about the packer ban
Competition Title of 2007 Farm Bill
Congress has an opportunity to address the changing structure of agriculture through the 2007 Farm Bill. The issues of competition and concentration in agricultural markets are as important to the health of our agricultural economy as the federal price support and direct assistance programs.
Learn about specific competition legislation (link to Competition title page)
Segments of the beef industry and USDA have been working to develop a comprehensive animal identification and tracking system capable of tracking domestic livestock from birth to slaughter. Although program implementation has begun, major questions remain unanswered, leaving livestock producers to wonder how this program will impact their business.
Learn more about Animal ID
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