Koontz Says Marketing Mandates May Produce Negative Impacts

Feedlot cattle ( FJ )

National Cattlemen’s Beef Association (NCBA) President-Elect Jerry Bohn, released the following statement in response to a letter from Dr. Stephen R. Koontz of Colorado State University providing additional context and clarity regarding his work on cattle markets and the use of that research in conjunction with the 30-14 proposal for mandated cash trade for live cattle:

"NCBA has been working closely with Dr. Stephen R. Koontz to develop solutions that address our concerns with the decline in negotiated cash markets and lack of price discovery. Recently there have been calls for marketing mandates with Dr. Koontz's research being used to support those proposals," said Bohn. "In response to our inquiries regarding his research on this topic, Dr. Koontz released the attached letter to correct the record and clarify his positions and findings on this topic.

"NCBA is committed to finding an industry-led solution, backed by current research and data, to increase the amount of negotiated cash trade in the industry. NCBA's Live Cattle Marketing Committee Working Group has been hard at work crafting industry-led solutions on the best methods to increase cash market activity without causing financial harm to the industry."

Background

The 30-14 policy proposal refers to beef packing companies being required by the government to purchase at least 30% of individual plant fed cattle needs in the negotiated cash market and that those purchases would be delivered to the plant within 14 days.

Read the full letter here.

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