Cattlemen Find Fault with Packer Ownership Study

March 14, 2002

A new economic study on the issue of packer ownership of livestock fails to demonstrate the benefits of banning packer ownership and only adds to the perplexity on a challenging issue, says the National Cattlemen's Beef Association (NCBA).

"This study fails to prove that banning packer ownership would have any positive effect on producer income and many of the unanswered questions remain unanswered," said Bryan Dierlam, director, public policy, NCBA. "The large body of information available on this issue - and the contradictory findings within that research - illustrate that it is time for hearings and dialogue. It's not time to move forward with an unproven proposal that would have huge repercussions in American agriculture."

Several members of Congress held a news conference and praised the study's findings and disregarding findings from earlier studies which show that banning packer ownership could have severe negative implications for all segments of the beef industry.

"The NCBA is committed to improving opportunities in the beef industry for all producers," said Dierlam. "However, this legislation creates disincentives for investment, could potentially fuel further concentration in all segments of the industry and creates confusion in a complex marketplace."