Grassroots cattlemen aren’t smart enough to protect their own livelihood, says NCBA.

Posted on October 16, 2020 by Mike Callicrate

January 31, 2000

Long held elitist philosophy finally exposed at National Cattlemen’s Beef Association convention

By Mike Callicrate

Cattlemen attendees at the National Cattlemen’s Beef Association (NCBA) convention were aghast at hearing the statement of Jon Ferguson, newly elected chairman of the Beef Checkoff division of NCBA.

In effect, Ferguson told his audience that NCBA leadership had all the brains when it came to the betterment of the beef industry and that grassroots producers didn’t know what was good for them—implying that NCBA leaders did.

“The large group of grassroots producers we are always hearing about are not informed enough or knowledgeable enough to understand these issues.”

Ferguson had no compunction in stating to members that, “It is important the decisions of the cattle industry be made by this group of educated people [NCBA Executive Committee] that are knowledgeable about the issues facing our industry. The large group of grassroots producers we are always hearing about are not informed enough or knowledgeable enough to understand these issues.”

So that there was no misunderstanding on this point, Ferguson’s statement was recorded by several cattlemen in attendance at the NCBA Executive Committee meeting, January 26, 2000.

Ferguson is a Kansas Livestock Association (KLA) past president and current NCBA Executive board member. Like those at the top in the NCBA, Ferguson and the KLA in his own state of Kansas are currently seeing a grassroots revolt to this top-down control style of leadership.

“We are simply not going to follow KLA’s or NCBA’s leadership into a corporate-controlled, industrialized-factory model for the beef industry.”

Ivan Riemer, Meade, Kansas cattle feeder, and a board member of the newly formed Kansas Cattlemen’s Association (KCA), stated, “We are simply not going to follow KLA’s or NCBA’s leadership into a corporate-controlled, industrialized-factory model for the beef industry. Like the top-down corporate control of the poultry industry, KLA’s constant defense of the big packers’ interests simply leads to chicken farmer-sharecropper status for cattle producers.

“KCA represents what is good for grassroots producers and consumers. We will aggressively fight the destructive and non-sustainable big corporate control of the cattle and beef industry.”

In other convention business, grassroots heated debate over the Blue Ribbon Commission recommendations ended in a deadlock and will be continued later.

“We now have an organization no one wants and we are looking for a place to discard the remains.”

One Montana cattle producer said, “After today’s fight we have killed, mutilated and divided the baby [NCBA]. On one side we have the big packer and big feeder, and on the other side we have the cattle producer. We now have an organization no one wants and we are looking for a place to discard the remains.”

“Once you have given away your power, it’s very difficult to get it back,” stated an Oregon cattleman in referring to the merger which gave NCBA control of the $80 million per year Beef Checkoff and the big meatpackers voting power on the NCBA board.

IBP head buyer and NCBA board member, Bruce Bass, as has become standard practice, once again dominated the NCBA Live Cattle Marketing Committee meeting. Bass congratulated the mostly big feeder-packer aligned committee for “being positive” in passing a resolution directing the NCBA to oppose legislation banning packer ownership of livestock. THIS resolution was later passed into policy and will oppose current efforts in Congress to help independent producers.

“We are afraid. We are intimidated. We have to sell our cattle to one of the big packers every week and we can’t afford to be blackballed.”

Evaluating the entire cattle situation, under agreement of anonymity, an independent Texas cattle feeder when asked why more feeders don’t stand up to the packer control of their markets said, “We are afraid. We are intimidated. We have to sell our cattle to one of the big packers every week and we can’t afford to be blackballed. Many of us have already given in to packer pressure and are now under contract.

“Some of us have discretely complained about illegal anti-competitive packer practices to the USDA’s Packers and Stockyards agency. However, even if we win, there is no provision in the Packers and Stockyards Act for a feeder to recover damages and we still have to do business with the packer. If something isn’t done now to stop the abuse of cattle producers, there won’t be an independent feeder left in the Texas panhandle within three years.”

The low point of the convention according to a New Mexico rancher came when U.S. Premium beef and their partner and big packer, Farmland, received the Vision Award for “best beef innovator of the year.” “U.S. Premium Beef continues to be lauded by NCBA, when in fact, U.S. Premium Beef has done nothing more than provide Farmland with price depressing captive supplies.

“U.S. Premium Beef and Farmland boast of an insulting $13.87 per head return to their owner-members. According to USDA, we have lost over $300 per head of our share of the consumer beef dollar.

“We will continue to lose as long as the NCBA ignores the abusive market power of the big packers, including Farmland. Packers and retailers are reporting record profits on beef, we are going broke and NCBA says we should be happy.

“I wasn’t sure how I wanted to vote in the upcoming referendum on the NCBA controlled Beef Checkoff.  Now I think I know.”

——————–

October 16, 2020 – We have now lost nearly half our ranchers and over 84,000 feeding operations that once supported a competitive market for cow-calf producers. Let’s finally end this NCBA/Checkoff menace and rebuild our cattle industry. Go to: Cattle Industry Launches Petition Calling for Beef Checkoff Referendum

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The Four Recommendations of the Federal Trade Commission Regarding the Meat Packing Industry

Posted on October 15, 2020 by Mike Callicrate

1: That the Government acquire through the Railroad Administration all rolling stock used for the transportation of meat animals and that such ownership be declared a government monopoly.

2: That the Government acquire through the Railroad Administration the principal and necessary stockyards of the country, to be treated as freight depots and to be operated under such conditions as will insure open, competitive markets, with uniform scale of charges for all services performed, and the acquisition or establishment of such additional yards from time to time as the future development of live stock production in the United States may require. This to include customary adjuncts of stockyards.

3: That the Government acquire through the Railroad Administration all privately owned refrigerator cars and all necessary equipment for their proper operation and that such ownership be declared a Government monopoly.

4: [That the Government] acquire such of the branch houses, cold-storage plants, and warehouses as are necessary to provide facilities for the competitive marketing and storage of food products in the principal centers of distribution and consumption. The same to be operated by the Government as public markets and storage places under such conditions as will afford an outlet for all manufacturers and handlers of food products on equal terms. Supplementing the marketing and storage facilities thus acquired the Federal Government establish, through the Railroad Administration, at the terminals of all principal points of distribution and consumption, central wholesale markets, and storage plants, with facilities open to all upon payment of just and fair charges.

“The Commission believes that those four suggestions strike so deeply at the root of the tree of monopoly that they constitute an adequate and simple solution of a problem the gravity of which will be unfolded to you in the pages which follow.”

Thanks to NFU historian Tom Giessel

 

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Meatpacker Monopoly Sinks Cattle Industry – A Look Back

Posted on October 9, 2020 by Mike Callicrate

The following was written after the 1996 South Dakota Governors Beef Conference. IBP President and CEO, Bob Peterson, and I had a heated exchange.

Written January 1, 1997

IBP’s Bob Peterson and friends steal the wealth from our farms and ranches.

“It’s unfortunate that the barter system has driven a wedge between the packer and the producer.  Packers want to buy low and producers want to sell high.”  IBP CEO and Chairman, Bob Peterson, speaking at the South Dakota Governors Conference.

The United States has seen many years of a free enterprise, democratic society that has led to the most efficient and productive agricultural system in the world.  One key element in the rapid growth and technological change of the last century has been the presence of intense competition.  Competition motivates.  Good things happen when people are motivated to improve.  People listen intently, sensing consumers’ wants and needs.   Efficiency is improved.  Costs are reduced.  Both producers and consumers benefit.

The “Wedge” Mr. Peterson talks about is real.  When producers are denied access to free, open, and competitive markets, and when anti-trust laws that protect our free enterprise system are ignored by large corporations, the Justice Department, and the USDA, the “Wedge” becomes a barrier of distrust.  Producers in most areas of agriculture feel helpless.  They are not only being denied a fair price for their output, but they are also being exploited by some of the same corporations on their input costs for food production.

“Non-enforcement of anti-trust laws have cleared the way for a few large corporations to become major predators instead of competitors, forcing producers’ prices far below their cost of production.” 

This lack of competition is destroying the very base of wealth creation.  Agricultural producers invest vast amounts of capital and labor.  They take extreme risks to transform soil, water, and sunshine into the wealth, which is the very foundation of our economic system.  Non-enforcement of anti-trust laws has cleared the way for a few large corporations to become major market predators instead of competitors, forcing producers’ prices far below their cost of production.   Farm and Ranch families are consuming the precious little equity they have left. 

Predator – One that victimizes, plunders, or destroys, especially for one’s own gain.

The three major packers, IBP, ConAgra, and Cargill have acquired 80% control of the finished cattle market.  All these companies have a history of market aggression and illegal activity.  With this enormous level of concentration and the large numbers of captive supply cattle, the three major packers don’t have to compete.  They are predators.   How would the officers and shareholders of these corporations like it, if their stock was traded in the same way they trade livestock?    These companies have become global, looking for the lowest cost commodities, the cheapest labor, and the highest priced consuming markets.  They are commodity dealers with little regard for sustained agricultural practices or regulations and health inspection, that ensure a continuous supply of high quality, safe food.  If they can make more money trading commodities in other countries without the regulations and health inspection that make U.S. production safer and higher-priced, they will do so.

Increasing Beef’s market share through higher quality, more consistent, convenient, value-added products doesn’t interest them as long as they are making plenty of money in a non-competitive commodity marketplace. Improving Beef’s quality, consistency and the development of value-added beef products will make no difference for the producer until competition is restored.   Beef can regain market share, but until the competitive marketplace that ensures a fair distribution of the benefits is restored, the producer will come up short.

“Strict enforcement of the P&S Act is critical, to prevent beef from going the way of the sheep industry.”

Both producers and consumers must realize that the same factors that will restore free enterprise and fair distribution of the consumer meat dollar, also will create the competitive environment to increase beef’s market share, and eliminate the ridiculous, so-called cyclical fluctuations in beef supplies.   Strict enforcement of the P&S Act is critical, to prevent beef from going the way of the sheep industry.  Lamb producers were denied access to a competitive market, which led to there demise.  A Meeker Colorado sheep producer said, “There isn’t enough lamb produced to even create a demand.”

“We need to understand that predatory pricing to the big packers is not an expense, it’s an investment.”

Today’s predatory market environment blocks producers’ access to the consumer.  Mr. Peterson, at the South Dakota Beef Conference, said, he welcomed the newly formed, producer-owned, Northern Plains Premium Beef cooperative to compete.  What chance do they have?   We need to understand that predatory pricing to the big packers is not an expense, it’s an investment. It is the Justice Department and the USDA’s responsibility to open the way for these producer-owned cooperatives and other new entries to the market by strictly enforcing the current anti-trust laws, which eliminate the non-competitive and manipulative practices of the Big Three Packers.  Remember, capitalism without anti-trust enforcement, results in self-destruction.  The December 1996 issue of Forbes magazine in an article, “Capitalism with a conscience” stated, “Adam Smith, the intellectual founder of modern capitalism saw a definite but limited role for government in helping create an environment in which both capitalism and social virtues can flourish.  No advocate of unfettered capitalism, he wanted laws against monopoly and carefully devised government programs to strengthen the institution of the family and otherwise advance the “public good.”

At the South Dakota Beef Conference, I stated, “In the spring of 1994, IBP pulled out of the cash market for six weeks, driving the cash market $17.00 lower.”  Mr. Peterson shouted, “That’s a bold faced lie, a bold faced lie! IBP has never stayed out of the cash market for six days let alone six weeks.”  I answered, “You’re right Bob, you had to buy enough cash cattle to at least set the formula price.”  IBP is considered the world leader in the beef industry.  IBP has broken the other packers to lead, sort of speak.  The profitability of trailing behind IBP has made them happy to follow.   A Canadian producer said, “IBP is the price leader in Canada, they always have been and always will be.”  When IBP steps out of their leadership role in the cash market and kills large numbers of non priced negotiated formula cattle, the effect on the cash price is devastating in all beef producing countries whose price is set off the U.S. market.

“What is the long-term effect of replacing high quality domestically produced beef with imports?”

An example of how seriously the current marketplace is failing is the current severe shortage of choice beef.   Restaurant owners and Exporters report partial deliveries on orders.  One restaurant owner stated, “The U.S. could sell 10 times more choice beef if it was produced.”  Clearly there is a great demand for choice cattle.  So, why are we driving the full-time rancher that produces the best cattle out of business?   The U.S. has opened its borders to lower-priced, lower-quality imported beef.  Beef’s market share compared to poultry and pork is declining.  What about the U.S. domestic beef producers share of beef sold in the U.S.?  Close to 17% of the beef consumed in the U.S. last year was imported, up dramatically from previous years.  What is the long-term effect of replacing high quality domestically produced beef with imports?

“Your KLA executive Committee decided that rather than try to be popular, they owed it to the membership to be something more important…..truthful …”

Cattleman organizations are considered our spokesmen.  The past president of the Kansas Livestock Association stated in his departing address in December, “Your KLA Executive Committee decided that rather than try to be popular, they owed it to the membership to be something more important…..truthful.  The facts were and are that during every single cattle cycle in history, we have always searched for some outside scapegoat in order to explain our lack of profitability.”  The Executive Committee??  What about the membership?  He suggested that large beef production and loss of market share were the reasons for low cattle prices.  Can you blame these people for their lack of understanding?  Many in the beef industry are still basing their beliefs on the recent, faulty USDA research.  If you still have trouble understanding the problem, go to the restaurant and grocery store and check quality and prices, and on the way, stop by the car dealer, (if you still have one) and see, how many calves it takes to buy a pickup today, compared to 1975.  Also, if you see any consumers, apologize for the lack of beef’s quality and consistency, and tell them we are working on correcting the problem.

In my discussions with cattle feeders and producers recently, I have encouraged their attendance at the upcoming January 29th through February 1st NCBA convention in Kansas City, MO (303-694-0305 for information).  This summer and fall have seen many productive state and local cattlemen meetings, resulting in resolutions, asking for enforcement of anti-trust laws, labeling beef by country of origin, etc.  Many producers don’t have the money to attend the convention and are troubled that the people without the grassroots best interests at heart have the expense accounts to make the trip.  If you have the ability to attend, please do so.  The resolutions must be defended; your survival depends on it.   We can only hope association staff and leadership recognize this situation and will act appropriately.  The future of the Beef industry depends on it!

Mike Callicrate                                                                                                                                     St. Francis, Kansas

Today in late 2020: We’ve now lost nearly half our ranchers and 75% (over 84,000) of our independent cattle feeders. The producers’ share of the consumer beef dollar dropped to 27% in June, the lowest on record, down from over 65% before the industry was monopolized. Small to medium-sized meatpackers are essentially gone due to predation, onerous regulations, and lack of market access. As a nation, we are now unable to feed ourselves and are dependent upon foreign countries and corporations to eat.

When we lose our markets, we lose our freedom!

Food security is national security.

 

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LIBERTY FROM ALL MASTERS: The New American Autocracy vs. The Will of the People

Posted on October 2, 2020 by Mike Callicrate

Monopolies control everything from what we grow and eat, to how and when we travel, to what we read. Wealth and power have never been more concentrated or a greater threat to our society.

Years ago, when I first met Barry, he explained how the Revolutionary War, which led to our founding, was a fight against monopoly power. Once again, in Liberty From ALL Masters, Barry sounds the alarm, this time even louder, while reminding us that it wasn’t always this way and that we have the tools right now to restore our freedom and liberty – all our freedoms and all our liberty, to all of us!

“No one else will fix this for you. American democracy is not a gift of big men in thrones of power. American democracy is not something handed to us by Jefferson or Douglass or Lincoln or Anthony or Brandeis or Du Bois or Roosevelt. American democracy is made by the people imposing their will—and their own systems of control—on “big” men.

It’s time to accept what we have lost. Our lives will never go back to normal. We have nowhere to retreat. Radical change, radical threat, is upon us.

Do nothing and our world ends. Do nothing and the songs of the temple shall all be howlings. Do nothing and our children and our children’s children shall perish in fire.

We have but one way forward.”

For much more on restoring our freedoms, our liberty, and our democracy go to Open Markets Institute.

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THE RIGHT EDUCATION

Posted on September 10, 2020 by Mike Callicrate

The writer is impressed more and more of the importance of giving farmers the right education. They have been educated squarely against their own interests for more than a half-century. We mean, educated to sell their immense and valuable crops to robber profiteers and allow the organized “gang” to price their crops for them. They have been educated to buy millions of dollars worth of farm machinery, fencing, coal, flour, feed, and fertilizer from the organized millionaire trusts and greedy profiteers.

The trusts and profiteers keep up a continual campaign of education, which makes the farmers pay millions of dollars more than they ought to pay for all they buy. The cost of this education is added on to the prices which farmers pay when they buy from the trusts and profiteers. The farmers foot the bill. Costly ads mean additional cost, not value, to what we buy.

From Tom Giessel – The Equity Union Exchange newspaper, Greenville, Illinois, May 12, 1920.

Corporate capture of our land-grant institutions:

Nutrien is a Canadian fertilizer company based in Saskatoon, Saskatchewan. It is the largest producer (monopoly) of potash and the third-largest producer of nitrogen fertilizer in the world. It has 1,500 retail stores and more than 20,000 employees.

Colorado based, Brazilian owned, JBS, is the largest meatpacker in the world. JBS is considered the leader of the global meatpacking monopoly with multiple felony convictions.

More on “THE RIGHT EDUCATION”

Note that we can’t get information on partnerships, without being a partner. So much for the Land-Grant mission!

http://poul.auburn.edu/charles-miller-jr-poultry-center/supporters/

Partners: ADM, PPC/JBS, Wayne Farms, Tyson, and others are getting a huge taxpayer subsidy for their research.

https://www.meatpoultry.com/articles/23687-adm-auburn-university-form-research-partnership

https://www.poultrytimes.com/poultry_today/article_0f098f94-8ed1-11e9-8b7d-a750b31fbb83.html

Charles C Miller Jr. – Building a State of the Art Research & Education Center

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