Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 7/2/10

The American Meat Institute has asked USDA to extend the comment period on proposed new rules that would limit meatpackers' ability to buy and sell livestock from each other.

Two weeks ago USDA announced a list of proposals aimed at protecting livestock producers from unfair practices, including prohibiting packers from purchasing, acquiring or receiving livestock from other packers and communicating prices to competitors. 

The new rules "would have a highly restrictive impact on how livestock is procured in the United States," AMI general council Mark Dopp wrote in a letter to Dudley Butler, administrator of USDA's Grain Inspection, Packers and Stockyards Administration.

"Because of the breadth of the proposal and the impact it almost certainly would have on how packers and producers interact, the proposed rules warrant careful scrutiny, analysis, and the submission of comprehensive comments," said Dopp.

He went on to say an initial review of USDA's economic analysis of the proposed rules indicates the agency understated the direct and indirect costs to producers, processors, and packers and does not appear to have considered the rules' direct and indirect economic impact on consumers.

Dopp asked that the 60-day comment period be extended to 120 days.

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