Rosa, OCA Support Packers Investigation

On Wednesday, Ag Secretary Sonny Perdue announced that the USDA will look into allegations of price manipulation against the Packers and Stockyards. Perdue announced the investigation after mounting pressure from Congressional members that felt producers were not receiving a fair pay for their cows.

This investigation welcomed news for northwest ranchers. Late last month the Oregon Cattlemen’s Association penned a letter to Perdue asking that he look at market manipulation during the coronavirus pandemic. OCA Executive Director Jerome Rosa said he’s not opposed to the packers enjoying a profit.

“But we want to see the profits shared throughout the entire profit chain, and we don’t want ranchers being the only ones not seeing, in fact seeing their prices drop.”

Retail prices for beef surged following the virus outbreak while prices that processors pay for cattle dropped. According to the America Farm Bureau Federation, the margin between the two more than doubled between late February and March 21^st. While Perdue announced an investigation into manipulation during the COVID-19 pandemic, producers are still waiting to hear the results of an investigation that looking into price fixing following August’s fire at a processing facility in Holcomb, KS.

Rosa said when obvious market manipulation is taking place and they get no response from the feds, it’s very frustrating.

“We know that there is something that is not right here, because, OK, the public process can work in some ways, but then in others it’s not.  And you know, it’s not acceptable to continue to ask for answers and we’re just not getting them.”

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