Perdue keeping close tabs on commodity prices
Story Date: 3/24/2020

 

Source: POLITICO'S MORNING AGRICULTURE, 3/23/20

The USDA chief on Sunday said the department is "actively monitoring all ag commodity markets and the flow of food from FARM TO FORK during the [coronavirus] outbreak," following heightened concerns from lawmakers and producers about potential manipulation in the livestock market.

Cattle ranchers have asked USDA for "emergency measures" to keep livestock producers afloat amid the pandemic, which is exacerbating the financial disparity between suppliers and the meatpackers who buy their livestock. In a letter to Trump last week, R-CALF USA claimed large processors are paying producers the same price for cattle as they did a decade ago — even though consumers are now paying 25 percent more for beef at the grocery store.

On Sunday, Perdue assured livestock producers that "we hear you! I expect all of our producers and stakeholders to be patriotic, honest brokers ... while we weather this pandemic." In a series of tweets, he wrote, "We are paying special attention to the difference in prices from the farm gate to the grocery shelf."

Industry response: The North American Meat Institute, which represents packers and processors, said on Sunday its members are "mindful of the disruption the pandemic has caused in cattle markets and will do all they can to alleviate adverse effects on critically important suppliers."

The big picture: There's growing, bipartisan interest among lawmakers and regulators about ensuring fairness in the meat market. USDA's probe of potential beef price-fixing is ongoing, and Perdue told Senate appropriators earlier this month that he "would love to have some tools to operate" on the issue. On the other hand, the department has repeatedly been criticized for siding with big agribusinesses over small farmers.

























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