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President ’s Per spec tive can we find a silver lining? By OCA’s President Tom Sharp sharpranches@aol.com
As we struggle to survive the social and economic chaos being presented by the current COVID-19 global pandemic, let’s ask, “Will there emerge a “silver lining” that our cattle industry can learn from and develop new actions to make needed changes to benefit our future?” Sometimes it requires a disaster or a crisis event to shake the conscience and come together in efforts to change or create a better system. Clearly, we have been given that opportunity now. What We Know • People still need to eat. • Agriculture production is “Essential”. • Consumer panic buying can quickly clear a retailer’s meat shelves (people want “real beef”). • “Fake meat” shelves remain stocked and we have seen it is not the consumer preference. • COVID-19 has shifted beef consumption from restaurant dining to the retail market channels. • The beef industry will not survive in a “Zero-sum” market environment, where if one segment profits another segment must lose (remember, as an industry: “We’re all in this together”).
• Fair and functioning cattle markets are vital to the sustainability of our industry. Short Term Actions (so far) • Immediate assistance relief for cattle producers to keep ranches and the U.S. industry operating. • USDA Market Facilitation Program (MFP) inclusion of beef commodities for disaster assistance. • OCA introduced Market Assistance policy resolution at the February 2020 NCBA Convention. • NCBA Board of Directors requested USDA MFP assistance in March 2020. • CARES Act relief assistance is on its way. • SBA loans and Payroll Protection Program assistance. • Expedited investigation, oversight and finding conclusion of requested USDA and Department of Justice Antitrust Division investigation of beef market volatility and possible inappropriate market/pricing influence occurrences extending back to last summer’s Holcomb, Kansas pack-
April/May 2020
• Packers need to keep packing (operating reliably), Producers need to be able to stay in business (profitably) and beef supply chains need to keep the market supplied.
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• From live cattle to the beef dinner plate, it is a twoyear process (breeding, calving, weaning, feeding, packing). • Unlike many commodities, beef production cannot be turned on and off like a manufacturing line. • Cattle need to go to market when they are ready to go to market (not put into storage inventory).
Tom welcoming attendees to OCA’ s Spring meeting dinner in Salem, two weeks before the first Stay at Home Order was issued.
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