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May 14, 2002
The Executive Committees of the Kansas Livestock Association Cattle
Feeders Council and the Texas Cattle Feeders Association met in a joint
session to discuss the fed cattle market.
The two groups reaffirmed their opposition to political solutions
to the livestock industry's economic problems or attempts to narrow the
business options or limit the individual freedom of livestock producers to
innovate in the management and marketing of their production without
additional government regulations. KLA
and TCFA, just as they have since the inception of both organizations,
will continue to aggressively guard members' freedom to conduct their
own business and utilize their own marketing programs as they see fit.
While the
two groups agreed that no single solution will turn the market around
because there is no single problem facing cattle feeders, they agreed to a
number of actions:
·
Pursue an in-depth systems analysis to identify specific
problems and opportunities in the beef industry.
This study will be conducted by experts outside the beef industry.
·
Develop recommended improvements for changes and additions
in the futures market that will be useful to the entire beef industry as a
risk management tool.
·
Support a uniform definition of captive supply.
This definition should be, "Captive supply includes all cattle
sales except for negotiated sales shipped within seven days."
·
Determine production capacity and slaughter capacity by
region and determine why full packing capacity isn't used.
·
Develop incentives for retailers to stimulate beef sales,
particularly during periods of heavy supply.
"This was a unique meeting," said TCFA Chairman Paul Engler of
Amarillo
. "This was the first time the Executive Committees of KLA and TCFA have
ever met in a joint session. We
had a very open meeting and discussed a very wide range of issues and
approaches to the devastating market situation facing cattle feeders."
Roy Brown
of
Satanta
,
Kan., chairman of the KLA Cattle Feeders Council, added that the joint group
represents about 50% of the fed cattle production in the
United States
. "The level of openness and
cooperation was very evident and indicates the concern that both
associations have about the market. We
have the obligation to do everything within our power to address the
situation, and our members can be assured that's exactly what we'll
do. These are indeed
interesting and challenging times, but the spirit of cooperation and the
intensity that members of both Executive Committees showed today is a
clear indication that we'll continue to represent our members'
interests."
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Amarillo,
Texas U.S.A. 79106