Articles in this document:
Meatpacking executive says Senate bill would have chilling effect
Tyson executive concerned about Iowa meatpacking bill
Iowa Senate OKs meatpacker bill
Meatpacking executive says Senate bill would have chilling effect
Thursday, March 29, 2007, 8:59 AM
By O.Kay Henderson
Radio Iowa
An executive from one of the nation's largest meatpacking companies says a bill that's cleared the Iowa Senate would have a chilling effect on his industry. The bill would force large meatpackers in Iowa to buy at least one-quarter of the hogs they slaughter on the open market -- from independent pork producers.
Many farmers have long-term contracts with a meatpacker that buys their hogs and Gary Machan, vice president of pork procurement for Tyson Fresh Meat, says farmers like the stability those long-term contracts provide.
"Certainly if packers in this state, not only ourselves but all the other packers, have to offer less contracts obviously some producers in seek of contracts -- if they're not offered here -- may well go to the fringe states to deliver their hogs under contracts," Machan says. "You might expect some flight of hogs, if you will, out of this state."
Machan says that would bring changes in the meatpacking industry in Iowa. Machan says Tyson's four meatpacking plants in Iowa could be "at risk." Tyson currently slaughters about 50,000 hogs per day at its operations in Storm Lake, Waterloo, Perry and Columbus Junction. About 10,000 Iowans work at those four plants. Machan made his comments Wednesday before the Ag Committee in the Iowa House.
radioiowa.com
Tyson executive concerned about Iowa meatpacking bill
Thursday, March 29, 2007, 11:54 AM
by Julie Harker
Brownfield
A bill that would force large meatpackers in Iowa to buy from independent pork producers has the meatpacking industry concerned. An executive from one of the nation's largest meatpacking companies says the bill, which has cleared the Iowa Senate, would have a negative impact on his industry.
Many farmers have long-term contracts with a meatpacker that buys their hogs and Gary Machan, vice president of pork procurement for Tyson Fresh Meat, says farmers like the stability those long-term contracts provide. Machan tells the Iowa House Ag Committee that Tyson's four meatpacking plants in Iowa could be "at risk."
Tyson slaughters about 50,000 hogs a day at its operations in Storm Lake, Waterloo, Perry and Columbus Junction. About 10,000 Iowans are employed at those plants.
brownfieldnetwork.com
Iowa Senate OKs meatpacker bill
By Gene Lucht, Iowa Farmer Today
Wednesday, March 28, 2007 2:57 PM CDT
DES MOINES -- A bill that would require Iowa meatpackers to buy 25 percent of their animals from non-affiliated livestock producers is making its way through the Iowa Legislature this year.
The bill, SF 504, was passed by the Iowa Senate last week where it garnered 34 out of 50 votes.
All 30 Democrats in the Senate voted for the bill, and they were joined by four Republicans, including Senate Minority Leader Mary Lundby, R-Marion, and former Senate Agriculture Chairman Thurman Gaskill, R-Corwith.
It awaits action in the House.
“This was copied after the Grassley proposal in the 2002 farm bill,” explains Senate President Jack Kibbie, D-Emmetsburg.
HE SAYS the idea is to require packers to buy at least 25 percent of the animals they buy from entities they do not own or control.
The bill also contains language requiring packers to buy at least 10 percent of their animals on the spot market in the first year. That figure eventually would rise to 20 percent over the next four years.
A recent USDA study indicated only 11 percent of hogs slaughtered nationally were bought on the open-cash market.
Iowa’s ban on packer ownership of animals has come under fire in the courts in recent years. The state attorney general has entered into agreements with several of the largest packers in the state that allows them to contract feed animals.
THOSE AGREEMENTS include language saying the packers will abide by the 25 percent figure for several years. Such agreements have been signed with Smithfield Foods, Cargill and Hormel.
Meanwhile, Sen. Charles Grassley, R-Iowa, and Sen. Tom Harkin, D-Iowa, have been working to pass legislation with similar language on a national level.
The proposed Iowa legislation is supported by the Iowa Farmers Union.
The Iowa Pork Producers Association has not taken an official stand on the bill, association officials say.
Kibbie says his goal is to maintain a market for the state’s independent livestock producers.
“If we don’t maintain that market, there’s not going to be anybody left in the business,” he explains. Kibbie also says many livestock contract production agreements are based on the open market price. Maintaining a certain amount of independent producer access will make determining fair contract prices more fair, he says.
iowafarmer.com
Meatpacking executive says Senate bill would have chilling effect
Tyson executive concerned about Iowa meatpacking bill
Iowa Senate OKs meatpacker bill
Meatpacking executive says Senate bill would have chilling effect
Thursday, March 29, 2007, 8:59 AM
By O.Kay Henderson
Radio Iowa
An executive from one of the nation's largest meatpacking companies says a bill that's cleared the Iowa Senate would have a chilling effect on his industry. The bill would force large meatpackers in Iowa to buy at least one-quarter of the hogs they slaughter on the open market -- from independent pork producers.
Many farmers have long-term contracts with a meatpacker that buys their hogs and Gary Machan, vice president of pork procurement for Tyson Fresh Meat, says farmers like the stability those long-term contracts provide.
"Certainly if packers in this state, not only ourselves but all the other packers, have to offer less contracts obviously some producers in seek of contracts -- if they're not offered here -- may well go to the fringe states to deliver their hogs under contracts," Machan says. "You might expect some flight of hogs, if you will, out of this state."
Machan says that would bring changes in the meatpacking industry in Iowa. Machan says Tyson's four meatpacking plants in Iowa could be "at risk." Tyson currently slaughters about 50,000 hogs per day at its operations in Storm Lake, Waterloo, Perry and Columbus Junction. About 10,000 Iowans work at those four plants. Machan made his comments Wednesday before the Ag Committee in the Iowa House.
radioiowa.com
Tyson executive concerned about Iowa meatpacking bill
Thursday, March 29, 2007, 11:54 AM
by Julie Harker
Brownfield
A bill that would force large meatpackers in Iowa to buy from independent pork producers has the meatpacking industry concerned. An executive from one of the nation's largest meatpacking companies says the bill, which has cleared the Iowa Senate, would have a negative impact on his industry.
Many farmers have long-term contracts with a meatpacker that buys their hogs and Gary Machan, vice president of pork procurement for Tyson Fresh Meat, says farmers like the stability those long-term contracts provide. Machan tells the Iowa House Ag Committee that Tyson's four meatpacking plants in Iowa could be "at risk."
Tyson slaughters about 50,000 hogs a day at its operations in Storm Lake, Waterloo, Perry and Columbus Junction. About 10,000 Iowans are employed at those plants.
brownfieldnetwork.com
Iowa Senate OKs meatpacker bill
By Gene Lucht, Iowa Farmer Today
Wednesday, March 28, 2007 2:57 PM CDT
DES MOINES -- A bill that would require Iowa meatpackers to buy 25 percent of their animals from non-affiliated livestock producers is making its way through the Iowa Legislature this year.
The bill, SF 504, was passed by the Iowa Senate last week where it garnered 34 out of 50 votes.
All 30 Democrats in the Senate voted for the bill, and they were joined by four Republicans, including Senate Minority Leader Mary Lundby, R-Marion, and former Senate Agriculture Chairman Thurman Gaskill, R-Corwith.
It awaits action in the House.
“This was copied after the Grassley proposal in the 2002 farm bill,” explains Senate President Jack Kibbie, D-Emmetsburg.
HE SAYS the idea is to require packers to buy at least 25 percent of the animals they buy from entities they do not own or control.
The bill also contains language requiring packers to buy at least 10 percent of their animals on the spot market in the first year. That figure eventually would rise to 20 percent over the next four years.
A recent USDA study indicated only 11 percent of hogs slaughtered nationally were bought on the open-cash market.
Iowa’s ban on packer ownership of animals has come under fire in the courts in recent years. The state attorney general has entered into agreements with several of the largest packers in the state that allows them to contract feed animals.
THOSE AGREEMENTS include language saying the packers will abide by the 25 percent figure for several years. Such agreements have been signed with Smithfield Foods, Cargill and Hormel.
Meanwhile, Sen. Charles Grassley, R-Iowa, and Sen. Tom Harkin, D-Iowa, have been working to pass legislation with similar language on a national level.
The proposed Iowa legislation is supported by the Iowa Farmers Union.
The Iowa Pork Producers Association has not taken an official stand on the bill, association officials say.
Kibbie says his goal is to maintain a market for the state’s independent livestock producers.
“If we don’t maintain that market, there’s not going to be anybody left in the business,” he explains. Kibbie also says many livestock contract production agreements are based on the open market price. Maintaining a certain amount of independent producer access will make determining fair contract prices more fair, he says.
iowafarmer.com