And this follow up that is not on the website, but has been emailed around.
February 24, 2006
Business As Usual at GIPSA Part II
The last month provides a vivid illustration of just how the packers can manipulate cattle prices. The fact that the big four packers, which control more than 80% of the market, are all staying out of the cash market at the same time isn't mere coincidence, while packers were reported to be leaning on captive suppliers to fulfill slaughter needs. Chain speeds have been reduced and plants went dark. We have never seen such "synchronized swimming" by the packers. Consequently, the packers have carved about $8 per cwt off fed cattle prices in just one month's time.
This is anti-competitive behavior, plain and simple. Two things need to happen. GIPSA must be prodded to do its job; and we must support legislation introduced by Senators Harkin, Enzi and Thomas to close the loopholes the courts and federal administrators have laid claim to within the Packers and Stockyards Act. The Competitive and Fair Agricultural Markets Act of 2006 deserves a hue and cry of support from agricultural producers everywhere. Once again, Wyoming's delegation is riding point for cattlemen.
Last week in Washington, DC the boss at the Grain Inspection Packers and Stockyards Administration (GIPSA) said the agency has no interest in examining the expert economic testimony provided on behalf of cattlemen plaintiffs in the historic Pickett v. Tyson (IBP) cattle price-fixing trial. This statement was made despite the fact that GIPSA spent $4.2 million in taxpayer money funding a captive supply study that was conducted, in part, by Kansas State University.
It was K-State faculty that testified for the packers during the trial - without examining Tyson's transaction records. Only one economist did so, and he testified for the cattlemen, but GIPSA officials refuse to talk to him or examine his analysis. GIPSA is willing to consort with the packers and funnel public money to their lackey institutions, but refuses to review any balancing evidence provided by the plaintiffs.
Examination of this evidence would provide insight into what's happening with our markets today. "See no evil; hear no evil; speak no evil" seems to be GIPSA's modus operandi.
February 24, 2006
Business As Usual at GIPSA Part II
The last month provides a vivid illustration of just how the packers can manipulate cattle prices. The fact that the big four packers, which control more than 80% of the market, are all staying out of the cash market at the same time isn't mere coincidence, while packers were reported to be leaning on captive suppliers to fulfill slaughter needs. Chain speeds have been reduced and plants went dark. We have never seen such "synchronized swimming" by the packers. Consequently, the packers have carved about $8 per cwt off fed cattle prices in just one month's time.
This is anti-competitive behavior, plain and simple. Two things need to happen. GIPSA must be prodded to do its job; and we must support legislation introduced by Senators Harkin, Enzi and Thomas to close the loopholes the courts and federal administrators have laid claim to within the Packers and Stockyards Act. The Competitive and Fair Agricultural Markets Act of 2006 deserves a hue and cry of support from agricultural producers everywhere. Once again, Wyoming's delegation is riding point for cattlemen.
Last week in Washington, DC the boss at the Grain Inspection Packers and Stockyards Administration (GIPSA) said the agency has no interest in examining the expert economic testimony provided on behalf of cattlemen plaintiffs in the historic Pickett v. Tyson (IBP) cattle price-fixing trial. This statement was made despite the fact that GIPSA spent $4.2 million in taxpayer money funding a captive supply study that was conducted, in part, by Kansas State University.
It was K-State faculty that testified for the packers during the trial - without examining Tyson's transaction records. Only one economist did so, and he testified for the cattlemen, but GIPSA officials refuse to talk to him or examine his analysis. GIPSA is willing to consort with the packers and funnel public money to their lackey institutions, but refuses to review any balancing evidence provided by the plaintiffs.
Examination of this evidence would provide insight into what's happening with our markets today. "See no evil; hear no evil; speak no evil" seems to be GIPSA's modus operandi.