The US Department of Agriculture (USDA) has unveiled new initiatives to enhance competition, affordability, and transparency in the domestic poultry market. These proposed rules under the Packers and Stockyards Act aim to promote fairness for contract poultry farmers and improve cattle market transparency.
These measures, announced recently, are part of the Biden administration’s efforts to address inequalities within the poultry and meat industries, which have been plagued by price-fixing scandals in recent years. The USDA is committed to utilizing all available tools to ensure fair competition, protect producers, lower costs for consumers, and combat unfair practices in the industry.
Andy Green, USDA’s senior advisor for fair and competitive markets, emphasized the importance of providing poultry growers with fair pricing and consumers with reasonable prices. The proposed rule aims to establish clear base prices in contracts, ensure fair comparisons, and prevent coercive investment demands for growers.
Additionally, USDA introduced new tools for cattle market transparency, including the Livestock Mandatory Reporting (LMR) Live Cattle Data Dashboard, to provide users with easy access to market information. The agency also aims to increase processing capacity, boost domestic fertilizer production, and create a fairer market for agricultural inputs to strengthen the supply chain.
These investments are expected to generate economic opportunities, leading to more affordable prices and choices for consumers while enhancing revenue for producers. However, industry body the National Chicken Council raised concerns, stating that the new regulations may impose unnecessary requirements on chicken-growing contracts, potentially impacting innovation and increasing costs for consumers.
Overall, USDA’s initiatives are geared towards fostering competitiveness, fairness, and transparency in the poultry and meat industries, ultimately benefiting both producers and consumers. By implementing these measures, the agency aims to create a more robust and resilient food supply chain while promoting economic growth in the sector.
