Meat + Poultry - June 2007 - 25
WASHINGTON
Farm Bill implications
I
f we're halfway through 2007, that
means the every-five-year Farm Bill
is winding its way through Congress.
Every half-decade, Congress sets the
direction for agriculture policy in this
country, and at the same time, modernizes and updates the direction farming,
ranching and related agri-businesses
are going to take in America for the
foreseeable future.
One of the "related agri-businesses"
the Farm Bill deals with is the meat
and poultry processing industry. For
much of the American public, this is
somewhat of a surprise. While not huge
numbers of Americans know much
about the Farm Bill, or even agriculture in general, many think of the Farm
Bill as an every-five-year giveaway of
taxpayer money to undeserving rich
farmers and growers who don't need
it. Specifically, subsidies to the sugar
industry, cotton growers and formerly
to the tobacco growers.
Mike Brown, senior vice president
for legislative affairs at the American
Meat Institute, Washington, agrees that
many of the issues in the 2007 Farm Bill
seem to be geared to production and
"row-crop" agriculture. Yet there are
issues that pertain to meat and poultry processors, both large and small,
and that affect the meat and poultry
industry.
One such issue sure to be part of
the Farm Bill, Brown points out, is the
rising cost of feed because of government mandates on ethanol. "Regardless of the size of the (slaughter or
processing) company, a recent study
from Iowa State Univ. conservatively
estimates that increased corn prices
driven by rapidly expanding U.S. ethanol production already have increased
U.S. retail food prices by $14 billion
annually," Brown says. "The study
shows that we are reaching a tipping
point, and that over-reliance on cornbased ethanol to meet stringent government mandates would further drive
26
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MEAT&POULTRY
I
June 2007
I
up retail food prices, reduce domestic meat and poultry production, and
erode our vital meat and grain export
markets," he says.
Another big issue sure to come out
of this Farm Bill will be Country-ofOrigin Labeling, which would require
processors and retailers to identify
what country the animals used in meat
products come from. While mandatory
COOL is already part of the law, an effort is being made in the 2007 Farm Bill
to move back the implementation of
mandatory COOL for the meat industry
from September 2008 to September of
this year, says Ron Fouche, director of
the Eastern Meat Packers Association, a
trade association whose small and midsize members are located in the MidAtlantic and New England states.
If plants and meat retailers are going
to be forced to put country-of-origin labels on products, then September is just
around the corner, says Jeremy Russell,
director of government relations and
communications for the National Meat
Association, Oakland, Calif. "What this
means is that retailers are not going to
do country-of-origin labeling themselves. So they will force it back on the
processors, who will have to bear the
burden," Russell says.
What happened when the seafood
industry was forced to begin COOL several years ago will be repeated in the
meat industry (poultry was exempted
from the requirements). The labeling
and other requirements for seafood
COOL ended up costing three times as
much as the Food and Drug Administration's original estimates.
Big meat packers fear efforts will be
made in the Farm Bill to restrict livestock contracting, also known as "alternative marketing arrangements." AMI's
Brown thinks these AMAs increase the
economic efficiency of the cattle, hog
and lamb markets, providing economic
benefits to consumers, producers, and
packers. He cites a report released by
www.MEATPOULTRY.com
By Bernard Shire
meatpoultry@sosland.com
USDA's Grain Inspection, Packers and
Stockyards Administration. Such agreements, says Brown, shelter producers
from risk, provide raw materials for
packers, and superior product quality
for consumers.
Not surprisingly, there are some
who disagree with this assessment of
livestock contracting. Many small cattle producer groups are opposed to
AMAs, "forward contracting," and similar arrangements, believing they will
be forced out of the marketplace. The
Centennial, Colo.-based National Cattlemen's Beef Association, opposes efforts to put "anti-competitive" measures
in the Farm Bill. Tanya Augustson Camarra, a spokeswoman for NCBA, says
the organization supports a producer's
ability to market cattle - "however,
whenever and to whomever.
"National agriculture policy should
be based on a free, private enterprise,
competitive market system," she says.
"We want to keep federal involvement
out of agriculture production as much
as possible." Even packer ownership,
a bugaboo to producers years ago, can
help producers without hurting competitiveness of the marketplace. Reducing alternative marketing arrangements could hurt cattle producers,
NCBA believes.
There will be many amendments offered to the Farm Bill this month as it
is marked up by the House and Senate
agriculture and appropriations committees, as well as action on the House and
Senate floor. What provisions affecting
meat and poultry processors remain in
the bill and what end up on the cutting
room floor will have great effects on
industry for at least the next five years,
and beyond that.
Bernard Shire is a food safety consultant and writer
for Shire & Associates in Lancaster, Pa., and previously was director of regulatory and legislative affairs
for the American Association of Meat Processors.
We would like to hear from you - to comment on
this story or to request reprints, contact us by
e-mail at: meatpoultry@sosland.com.
http://www.MEATPOULTRY.com
Meat + Poultry - June 2007
Table of Contents for the Digital Edition of Meat + Poultry - June 2007
Contents
Meat + Poultry - June 2007 - 1
Meat + Poultry - June 2007 - 2
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Meat + Poultry - June 2007 - Contents
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