The combination of low prices to cattle producers, but high prices for beef to consumers has to be addressed, according to Nebraska Third District Nebraska Rep. Adrian Smith.
Smith said there needs to be more done to mitigate issues that lie between the ranch and the end consumer.
“Beef in grocery stores is more expensive than usual, and prices to cattle producers are low,” Smith said. “That is not just frustrating, but it needs some resolution.”
Consolidation in the processing industry has led to perceived efficiencies, but the consumer isn’t seeing the result.
“Those so-called efficiencies are not benefiting consumers,” Smith said. “We’re trying to get to the bottom of that. It’s not an easy solve, and it’s not a clear-cut solve.”
Smith said he believes that making available more meat inspectors will help out on both ends — the producer and the consumer. By doing so, the goal is to be able to maintain high standards for safe products in more innovative ways, perhaps involving states more than they currently are, Smith said. In so doing, the thinking is that it would empower smaller processors to produce more rather than just have either the very small processor for custom processing or the giant plants where one plant within one company, such as Dakota City, produces enough to feed 18 million people a day.
“When there is disruption, even cleaning the plant for a couple of days, which would be considered a fairly minor disruption, that becomes a major disruption to the supplies to the consumers,” Smith said. “Then producers themselves get kicked hard. This cannot go on for very long, so we need to get to the bottom of that.”
Officials are sorting through findings from an investigation into the industry, but Smith said one thing is clear.
“We need more bidders at the sale barns,” he said. “I think that can help achieve more balance in terms of supply and demand and offer a more fair price, both to producers and consumers alike.”
By providing more inspectors, Smith said, the smaller processors would have greater agility to meet the demands of consumers.
Smith compared the situation to micro breweries and their impact on the beverage industry.
“Not that this is the exact same situation, but we have a micro brew industry, across America, in small towns, all across the Third District even,” he said, “but when you look at all of the production of these micro breweries combined, believe me, the big companies, Anheuser-Busch and others, I’m guessing they see these numbers on their radar. So, smaller operators have a role in our economy, and I would like to see more opportunity for smaller processors to be empowered to meet the needs of consumers.”
The Link LonkAugust 13, 2020 at 01:00PM
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Congressman Adrian Smith concerned about beef industry | Local News - Scottsbluff Star Herald
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