News Update
Aug. 30, 2010

USDA, DOJ Hold Workshop Focused on Competition Issues in the Livestock Industry

The U.S. Department of Agriculture (USDA) and the Department of Justice (DOJ) Aug. 27 conducted the fourth of five joint public workshops to explore the appropriate role for antitrust and regulatory enforcement in American agriculture. The workshop, led by Agriculture Secretary Tom Vilsack and U.S. Attorney General Eric Holder, examined competition in the livestock industry and featured panel discussions on trends in the livestock industry, market consolidation and market transparency. The workshop also included opportunities for public comments.

Friday’s meeting was the fourth in a series of workshops intended to promote dialogue among interested parties and foster learning with a diverse group of stakeholders regarding competition and regulatory issues in the ag marketplace. The workshops are the first-ever to be held by the DOJ and the USDA to discuss competition and regulatory issues in the agriculture industry.

“Given the consolidation that has taken place in the livestock industry over the past decades, it is critical to ensure a fair market still exists to give all players an honest chance at success,” Vilsack said. “A fair and competitive marketplace is important not only for producers, but also for consumers, and today’s open and transparent dialogue with ranchers, farmers, academics and other industry stakeholders will provide us with a[n] understanding of the complex issues in this important industry.”

“Ultimately, today’s conversation is about much more than simply last year’s trends or this year’s challenges. It’s about livelihoods, families, this region’s economy and our centuries-old American way of life,” Holder said. “We’ve made these workshops a cabinet-level priority so that we can most effectively and efficiently determine how to ensure a fairer, more competitive marketplace for producers and consumers alike.”

Secretary Vilsack and Attorney General Holder began the workshop with opening remarks before leading a roundtable discussion, in which Christine Varney, assistant attorney general for the Antitrust Division, participated with other federal and state officials, on competition issues in agriculture and the livestock industry. After the roundtable discussion, a panel of producers and feeders from throughout the country shared their firsthand experiences and perspectives on the industry. USDA and DOJ officials then listened to public testimony from audience members.

In the afternoon, another panel discussed trends in the livestock industry, including issues associated with contracting, price transparency and the effects of concentration. The final panel of various market participants discussed market structure issues in the livestock industry. 

The workshop was in Fort Collins, Colo., at the Lory Student Center on the Colorado State University campus and was attended by several key federal and state leaders, including Governor Bill Ritter, U.S. Rep. Betsy Markey, Colorado Attorney General John Suthers, Colorado Commissioner of Agriculture John Stulp and Montana Attorney General Steve Bullock.

Additional information about the series of workshops can be found at http://www.justice.gov/atr/public/workshops/ag2010/index.htm#overview. Videos and transcripts from Friday’s workshop will be available for review at a later date on the Antitrust Division’s website at http://www.justice.gov/atr/public/workshops/ag2010/index.htm#dates. Individuals seeking more information on the workshops should contact magriculturalworkshops@usdoj.gov.

— News release provided by USDA.

CAB Offers Testimony at USDA/DOJ Hearing

Certified Angus Beef LLC (CAB) President John Stika presented testimony Friday, Aug. 27, at the USDA/Justice workshop on competition in Fort Collins. The workshop was largely concerned with whether new rules from the Grain Inspection, Packers & Stockyards Administration (GIPSA) should be put in place — rules which may affect value-based marketing of cattle.

As CAB Director of Industry Information Steve Suther noted in a Black-Ink list comment, “CAB stands for unlimited opportunity for all producers to be paid for producing higher quality beef. That incentive drives herd improvement and consumer demand for beef.”

Following is the text of the testimony John Stika presented in Fort Collins:

“Members of the Panel, fellow concerned members of the beef industry:

“The Certified Angus Beef® brand is a not-for-profit subsidiary of the American Angus Association®, which has a long tradition of helping producers add value to their cattle. Producer-members of the Association planned ahead for the value-based future we have today, by investing in genetic evaluation and establishing this brand more than 30 years ago. Since then, value-based opportunities have only expanded, and our licensees will sell more than three-quarters of a billion pounds of branded product this year worldwide, returning at least $25 million to cattlemen through alternative marketing agreements (AMAs) such as grids.

“Pull-through demand from consumers has functioned successfully because of increasingly available value-based marketing opportunities. Cattle-Fax research says the current system allows producers to receive $500 million per year in value-based premiums paid into the system by consumers, the only source of new dollars in the cattle industry. It is in our mutual best interest to see that any persons who have been excluded from value-based marketing opportunities may soon take advantage of that ability to be paid for cattle according to consumer desires. We urge that great care be given to ensure that no one who has worked to add value to their herd in an effort to meet consumer demands finds fewer marketing opportunities — even if that development is unintended.

“We recognize a stated intent in the proposed rules to level the playing field. We urge that any low spots be raised to enhance access to consumer-focused marketing, rather than knock down the high spots of opportunity currently available to any enterprising beef producer.

“We fully understand the proposed GIPSA rules don’t spell out a required end to value-based marketing. However, we are concerned with the potential for overly broad interpretations that treat poultry and beef production alike when they are very different systems. USDA’s stated need for clarification to enhance fairness for poultry growers may result in less clarity when applied to beef producers, where a cooperative approach has taken root over several decades. Efforts to comply with the new provisions could logically result in fewer value-separation opportunities for high-quality cattle, compared to average, commodity cattle that risk a decline in consumer demand for beef. Unintended consequences of rule changes could actually harm the interest of fairness in the beef market; for example, if a proliferation of newly required paperwork makes it less profitable for packers to offer AMAs, then producers will not be paid premiums based on true value. Anything that diminishes today’s value edge for quality could diminish what Angus and other quality-focused producers have accomplished, and reduce the value-added edge their cattle have earned in the marketplace. The idea of improving fairness in the marketing of livestock is something we all should support. How it should be achieved is a matter of opinion, but it does little good to enhance fairness on one hand while potentially restricting it on the other.

“We all want clarity in our rules, but our consumer-driven industry can’t afford the kind that ‘throws the baby out with the bath water.’ We cannot have the kind of clarity that negates its intent by opening the doors to a long series of lawsuits to further clarify. Therefore, we urge caution in attempting to clarify policy by using selected opinions without greater consensus on both the direct effects and potential side-effects resulting from efforts to comply with change.”

— Text to testimony presented by CAB President John F. Stika

AgWired Offers Audio of Friday’s USDA/DOJ Workshop, Background on GIPSA Rule Change Controversy

Chuck Zimmerman of AgWired.com offers a comprehensive overview of the GIPSA issue, along with Friday’s USDA/DOJ workshop and the National Cattlemen’s Beef Association/National Pork Producers’ Association GIPSA Rule Press Briefing the day prior. Visit http://agwired.com/category/gipsa/ to learn more about the issue and hear discussion and testimony presented at the workshop.

For more viewpoints on Friday’s workshop and the proposed rule change, visit newsrooms of the following organizations:

• American Farm Bureau Association (http://www.fb.org/index.php?fuseaction=newsroom.newsroom)
  
• American Meat Institute (http://www.meatami.com/ht/d/Articles/afterdays/7/pid/206)
  
• National Cattlemen’s Beef Association (http://www.beefusa.org/newsncba_policynews.aspx)
  
• National Farmers Union (http://nfu.org/news)
  
• Organization for Competitive Markets (http://www.competitivemarkets.com/)
  
• R-CALF USA (http://www.r-calfusa.com/news_releases/news.htm)
  
• U.S. Cattlemen’s Association (http://www.uscattlemen.org/)
  
• U.S. Premium Beef (http://www.uspremiumbeef.com/)

Temple Grandin HBO Movie Wins Seven Emmys

The HBO movie Temple Grandin, which illustrates the life story of Temple Grandin, Colorado State University animal scientist and renowned animal behaviorist, received a total of seven Emmy Awards — five of which were handed out last night during a primetime broadcast on NBC.

The film swept the major awards, including Outstanding Made for Television Movie; Outstanding Lead Actress in a Miniseries or Movie (Claire Danes); Outstanding Supporting Actor in a Miniseries or Movie (David Strathairn); Outstanding Supporting Actress in a Miniseries or Movie (Julia Ormond); and Outstanding Directing for a Miniseries, Movie or a Dramatic Special (Mick Jackson).
Grandin appeared on stage Sunday night at the Nokia Theater in Los Angeles as the award for Outstanding Made for Television Movie was handed out.

“It makes me very happy. The movie serves as a tool to educate people about autism and shows that autistic children can become something,” Grandin said.

Grandin marveled at how Claire Danes transformed herself into the title character. “She deserves the award for Outstanding Lead Actress. Claire became me. She went way beyond the normal role,” Grandin said.

The awards and recognition were an added birthday present for Grandin, who turned 63 on Sunday. “It was just sort of luck,” Grandin said.

The movie depicts Grandin’s life as a child, during her high school years, and follows her during the 1970s as she begins her career in her chosen field of food-animal welfare and as an equipment designer determined to help reduce stress on animals. The film delivers messages about autism and treating animals humanely.

Grandin’s ability to see pictures in her head and her understanding that cows experience their world mainly as visual stimuli has enabled her to design livestock facilities that treat cattle more humanely.

A professor in Colorado State’s Department of Animal Sciences, Grandin teaches courses on livestock behavior and facility design. She regularly consults with the livestock industry on design, livestock handling and animal welfare. Facilities she has designed are located in the United States, Canada, Europe, Mexico, Australia, New Zealand and other countries around the world. In North America, almost half of the cattle are handled in a center track restrainer system that she designed for meat plants. Curved chute and race systems she has designed for cattle are used extensively throughout the livestock industry.

Grandin has published several books on the humane treatment of animals and on a better understanding of autism. Her 1995 autobiography, Thinking in Pictures: My Life with Autism, is the basis for the HBO movie. She’s also the author of Animals in Translation: Understanding the Mysteries of Autism to Decode Animal Behavior, a New York Times best seller published in 2005, and last year’s Animals Make Us Human.

The film also captured two additional Emmys: Outstanding Music Composition for a Miniseries, Movie or a Special (Original Dramatic Score) and Outstanding Single-Camera Picture Editing for a Miniseries or a Movie.

The movie Temple Grandin is now available on DVD through local stores and online retailers.

— News release provided by Colorado State University.

— Compiled by Shauna Rose Hermel, editor, Angus Productions Inc.