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LMA wants outdated regulations lifted to boost competition in markets

The Livestock Marketing Association says antiquated regulations prohibiting livestock auction owners from owning or investing in meat packing businesses are limiting competition in the markets. 

Chelsea Good, vice president of government and industry affairs and legal, with LMA tells Brownfield bills have been introduced in both the US House (the Amplifying Processing of Livestock in the United States (A-PLUS) Act (H.R. 7438)) and US Senate (the Expanding Local Meat Processing Act (S.4709)) to address the issue.  “I have people who want to be part of the solution,” she says.  “Whether it is investing in a small, local locker plant or maybe being part of a larger group of people who are coming together to pool funds to create a regional packer.”

She tells Brownfield there are thresholds in place (either 2,000 cattle per day or 700,000 cattle per year) that would prohibit livestock auctions from investing in large packers. “This would keep the prohibition to livestock auctions couldn’t invest in packers greater than this size,” she says.  “That’s the 10 largest beef packers.  It would then allow the investment in the areas where we’re trying to create competition, and new competitors to those largest packers.  But at the same time it would keep the 10 largest packers from being able to own or invest in a livestock auction.”

She says these bills aren’t a silver bullet fix.  “This bill is not going to fix every issue our industry has in terms of packing capacity and fed cattle marketing,” she says.  “I don’t know if that silver bullet is out there.  However, this is a big step in the right direction.”

Good says she’s optimistic these bills can make it through Congress before the end of the year, but if they don’t, LMA is prepared to get to work on them next year.

In addition to LMA, the National Cattlemen’s Beef Association (NCBA), the United States Cattlemen’s Association (USCA), the American Sheep Industry Association (ASI), the National Pork Producers Council (NPPC), and many state-based groups also support the measures.

AUDIO: Chelsea Good, Livestock Marketing Association

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