Walmart will source beef for its new case-ready beef plant in Kansas from Sustainable Beef, a rancher-owned packing plant in which Walmart has a minority stake. Founders say this is the future, other ranchers say its the end of competitive price discovery.
Read MoreWholesale beef prices have jumped to record levels, as shoppers stockpile meat in response to the global coronavirus pandemic. But this run on beef isn’t helping cattle ranchers. On the contrary, cattle prices have plummeted since January, putting many ranchers on the brink of collapse.
Read MoreLast week, nearly 500 cattle producers from 14 states rallied in Omaha, Nebraska to denounce corporate control over cattle markets and to demand that the Trump administration do something to fix it.
Read MoreOn Tuesday, several Midwestern feedlot owners along with the Ranchers-Cattlemen Action Legal Fund (R-CALF) filed a class-action lawsuit alleging that dominant meatpackers conspired to depress cattle prices starting in 2015. The case argues that JBS, Tyson, Cargill, and National Beef strategically cut back on open market cattle bids, closed plants, and imported costly foreign cattle in order to force farmers to accept lower prices and manipulate spot market cattle values.
Read MoreLast month, the nation’s fourth-largest beef packer, National Beef, announced plans to take over Sysco-owned Iowa Premium, a regional packer focused on processing Black Angus steers for the Upper Midwest. National Beef is majority owned by Brazilian firm Marfrig.
Read MoreLast month, the USDA’s Agricultural Marketing Service announced that the world’s largest meatpacker, JBS, made inaccurate and non-transparent payments during early 2018 to ranchers at its Grand Island, Nebraska plant.
Read MoreVirginia State Senator A. Benton Chafin last week introduced a bill that would significantly hike “checkoff” taxes that cattle growers in the state must pay. The move follows efforts in other states—including recently in Oklahoma—to increase or introduce state-level checkoff taxes, which are charged in addition to the $1 per head tax collected at the federal level. Many local ranchers oppose both the tax and the idea that it will be imposed by the legislature, saying the process effectively shuts independent cattle producers out of having a say in this sector specific levy.
Read MoreDuring President Donald Trump’s recent trip to China, Montana Senator Steve Daines (R-MT) negotiated a $300 million beef cattle deal between the Montana Stockgrowers Association and the Chinese e-retailer JD.com. The deal calls for the retailer to buy $200 million of cattle between 2018 and 2020, and invest $100 million in a new feedlot and packing plant in Montana. Some ranchers are concerned that this unusual deal will favor certain ranchers over others, and further concentrate power over the American livestock sector in the hands of Chinese companies.
Read MoreBig Ag is back on the offensive in Oklahoma, less than a year after voters defeated a bill that would have stripped the state’s residents of their ability to regulate corporate farming. The Oklahoma Cattlemen’s Association wants ranchers to pay an additional $1 tax per head of cattle sold in the state, and will hold a November 1 vote on the tax for Oklahoma cattle producers. Family farm advocates say that much of the money collected under such checkoff taxes is funneled to private industry groups that use it to promote the interests of corporate agriculture over independent farmers.
Read MoreCattle prices hit historic lows in some parts of the country in November, even as the first shipments of Brazilian beef arrived in U.S. ports after the USDA’s recent decision to lift a 13-year-old ban on that country. Ranchers say the combination will likely drive many American ranchers out of business.
Read MoreThe most recent attack by American ranchers on the Department of Agriculture’s beef checkoff tax reached a federal court two weeks ago. The suit, filed by the Ranchers-Cattlemen Action Legal Fund (R-CALF), challenges how the checkoff program operates in Montana. But the outcome of the case could reshape how the checkoff tax system operates across the whole country.
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