Citizens of foreign countries can do it. Illegal aliens can do
it. Felons can do it. Virtually any U.S. citizen or company can do
it. Except for a couple of classes of citizen the Senate is
attempting to strip of constitutional rights.
Newspapers can own trees or paper companies. Paving companies can
own gravel pits. Car companies can own steel companies. Builders can
own timber or lumber companies. A vintner can own vineyards.
Nearly anyone can own the raw material from which they
fashion a product. Or, to save capital and preserve long-term
flexibility, they can sign contracts or long-term agreements or
fashion joint ventures with suppliers. It's a way to guarantee
quality, insure supply, control integrity and safety and control
costs.
But if you are a cattleman or pig producer or meat packer,
you do not have the rights other U.S. citizens have. Your business
cannot operate like other U.S. businesses. You don't even have the
rights foreign companies have. At least under an amendment to the
Farm Bill in the Senate this week*, rights to contract
livestock would be stripped from livestock producers and to
contract or own livestock from packers. Cattlemen who have shared
ownership of cattle or hogs in joint ventures to supply high quality
beef, "organic beef" or "natural" beef would be stripped of the
right to associate in business with the one class of business
to which they can sell slaughter cattle or hogs.
As a result, livestock producers would become dependent on
marketing channels crippled by Congress, deprived of the right to
join in business ventures other food producers can. According to the
most recent Congressionally mandated research - fully 29 percent
of the cattle on feed, for example, would become illegal
because they would have been produced under marketing
agreements. Another four to five percent forward contracted
could be, depending on the number of days from slaughter when they
were contracted. Incredibly, cattlemen who own packing plants or
wanted to build one, would become illegal.
Shoppers who have become devoted customers of brands like
"Rancher's Reserve," various Angus brands and dozens of "natural"
brands, could find themselves unable to buy their special beef. Pork
customers could see some favorite brands disappear because the
company guaranteed quality and supply by contracting or owning pig
operations. Those business models would now be banned.
Why? Supposedly, to stop alleged "manipulation" of livestock
prices Congress' own research - extensive studies by respected
business and livestock economists and costing millions - have
conclusively proved does not exist. Other studies have
concurred.
The real reason: some livestock producers' fear: fear of
competition, fear of change, fear of the higher standard of quality
and safety consumers are demanding. And maybe some jealousy,
jealousy that some cattlemen and pig producers have figured out a
way to make a little more money -- by using their thinking caps
devising ways to satisfy the consumer better. Horrors!
Meeting 21st century consumer demand requires livestock producers
to work harder, hunt for ways to increase quality, reduce product
variation, eliminate inefficiencies in the system and participate in
sectors with higher margins. Dairy producers for years have been
using their check-off money to buy into cheese making and ice cream
processors, to participate in business sectors with higher margins
than milk production. That reduced their exposure to the production
phase, where biology, weather, fluctuating costs and prices hurt
profitability. They shared in higher-margin, more stable sectors of
the production chain.
The Senate is attacking the efforts of producers to join with
packers and retailers to improve quality, lock in a market, reduce
risk, get premium prices for improved genetics and management and
become more intelligent and efficient producers and marketers. What
has happened to our country? How could Congress sink to attacking
hardworking cattlemen -- and the packers and retailers willing to
work with them, share the risk and share information so that the
meat production chain can serve consumers better?
Consumers should be very angry. Voters should be very angry.
Congress has no business pandering to lagging producers trying to
turn emotional fears - not facts and certainly not the
interests of consumers - into vindictive legislation
taking away the rights of livestock producers and
packers. Anyone's business or manufacturing plant could be
next, stripped of the rights to own or contract for raw
materials.