Pork Producers Move from Neutral to Opponent Status

January 30, 2002

The National Pork Producers Council has switched gears on its position regarding the amendment to the Senate farm bill that seeks to prohibit packers from owning livestock 14 days prior to slaughter. One particular feature of the amendment the NPPC found unacceptable was that it applies to pork, beef and lamb but not poultry.

Although not indicating whether it would lobby to have the amendment taken out of the farm bill, the NPPC board said it "cannot support" the amendment because it puts at risk forward contracting of hogs and other contractual agreements; provides the poultry industry an economic competitive advantage; establishes an unfair playing field for world competitors such as Denmark, Canada, Mexico and Brazil; risks potential plant closures resulting in the reduction of hog shackle space and risks "potential economic hardship on all U.S. pork producerS."

The board tripped over the word "control" and "its implication for eliminating the ability of pork producers to enter into forward contracts or other contractual agreements"; that was "the primary concern of the NPPC Board and the justification for changing the previous industry position."

Further, the NPPC explained that the previous position "dealt only with the question of packer ownership of hogs, not the additional provisions relating to feeding and controlling. The previous position stated that NPPC ‘recognizes an individual's right in a capitalistic society to pursue their economic benefit and clarify NPPC's position to be neutral on packer ownership of hogs.'"

The National Cattlemen's Beef Association and the American Meat Institute are working actively to reverse the amendment.