IMPORTANCE
The U.S. pork industry has thrived because of the diversity of production operations and marketing options. Restricting or limiting buying and selling arrangements between producers and packers could adversely affect the more than 36 consecutive months of profits the industry has enjoyed.
BACKGROUND
Various legislative proposals have been put forward to ban packer ownership of livestock. A packer ownership that ban could prohibit packers from owning, feeding or controlling livestock more than 14 days prior to slaughter was passed by the Senate in the 2008 Farm Bill, but the provision was removed by the conference committee. A packer ownership ban would hamper industry progress and eliminate the economic benefits of marketing arrangements to producers and consumers. The ban could have many unintended negative consequences while not accomplishing its original goal since banning one group of potential competitors does not ban competition.
NPPC POSITION
NPPC supports the right of all producers of any size or type of production system to market access. The U.S. pork industry opposes legislation that would dictate the type of marketing arrangements pork producers may enter with packers.
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