WASHINGTON, D.C. (NAFB) – Packer concentration and beef supply chain resiliency weighed on lawmakers minds on both sides of Capitol Hill, as House and Senate panels looked at food production issues during the pandemic Wednesday
Ag experts told the House Ag Committee, the beef supply chain, stretched to the breaking point by the pandemic, needs help. But simply adding capacity may not be enough.
Purdue University’s Jayson Lusk.
University of Missouri’s Keri Jacobs suggested producer-owned processing cooperatives, but with government help.
Witnesses also stressed doing more on cybersecurity, that ransomware attacks will continue to threaten the U.S. food supply.
Meantime, Senate Judiciary was looking into anti-competitive practices in meatpacking, as Senator Chuck Grassley pushed for more cash trades and he and others sought more competition, price transparency and scrutiny of mergers and acquisitions.
But Tyson Foods’ Shane Miller and Consumer Reports’ George Slover showed just how wide the gap is, not just in boxed beef versus cattle prices, but in opinions. Miller, followed by Slover.
Slover argued, today most cattle are purchased in advance under long-term contracts with pre-arranged prices, giving packers a captive supply and magnifying their control.