Common Ground
Market unrest and a seat at the table.
Consumers are depending on farmers and ranchers more than ever right now, yet producer livelihoods are being threatened. The discrepancy is beyond ironic and suggests a broken system.
“While many will agree on the problems, the proposed solutions are complicated, varied and often conflicting to one another. For that reason, I highly encourage and support cattlemen to find a seat at the table and engage in this critical dialogue.”
The subjects of price discovery, market transparency, packer concentration and equitable margin sharing have been controversial within the cattle industry for decades. The concerns around these issues, however, have reached a new level following the packing plant fire in the summer of 2019 and now through the COVID-19 crisis.
The American Angus Association serves a diverse membership with different and sometimes contradictory viewpoints. We don’t engage in political or legislative issues but focus on genetic improvement, making Angus cattle more valuable for the commercial producer, and expanding the market for high-quality Angus beef.
With that all said, it is very hard to sit silent at this time when so much anguish, financial hardship and uncertainty exists across our cattle industry. Our commercial cow-calf producers, the backbone of the beef supply chain, are seeing drastically reduced calf prices while prices at the retail counter go up. If this continues, the long-term sustainability of our industry will certainly be compromised.
We need fair and equitable markets, systems that allow for price discovery and value-based marketing, and effective risk management tools for all industry segments. Of course, while many will agree on the problems, the proposed solutions are complicated, varied and often conflicting to one another. For that reason, I highly encourage and support cattlemen to find a seat at the table and engage in this critical dialogue. I encourage cattleman to talk with their elected officials and policy-makers, and to be involved in organizations they feel best represent them politically and give them an opportunity to voice their collective concerns in a meaningful way.
I believe this is a very critical period for the cattle business, and we must act with urgency. I implore our industry organizations to set aside their differences and align on common goals for our grassroots producers. Collectively we can identify solutions and make meaningful changes to ensure the success of our industry for decades to come.
Editor’s note: Mark McCully is the CEO of the American Angus Association.
