ORGANIZATION FOR COMPETITIVE MARKETS

P.O. Box 6486

Lincoln, NE 68506

 

Web site: www.competitivemarkets.com 

Date:  March 23, 2001                        For Immediate Release 

Contact:           Fred Stokes: 662-476-5568

                        Michael Stumo: 860-379-6199

                                               

The NATIONAL PORK PRODUCERS COUNCIL HAS BECOME A FRONT FOR AGRIBUSINESS

 

The Organization for Competitive Markets (OCM) reacted with grave disappointment to the National Pork Producers’ Council’s (NPPC) continued refusal to represent the interests of independent hog farmers.  OCM stated that NPPC’s failure to adopt policy banning packer ownership was especially disturbing considering the recent referendum that voted to end the Pork Checkoff as well a recent study released by NPPC that shows that the spot market may soon disappear. 

 

Independent producer interests introduced a motion at the National Pork Forum last week that would have banned packers from owning hogs.  Sadly, contract producer and packer interests, which have grown increasingly strong in NPPC, successfully fought the attempt at fairness and equity in this crucial structural issue.  The final resolution stated that NPPC is “neutral on packer ownership of hogs.”

 

“NPPC has made its decision that it is no longer a representative of independent agriculture, it is now a front for the meat packers and hog integrators,” said Fred Stokes, president of OCM.  “The organization has retrenched after its bout with democracy when it convinced USDA to throw out the checkoff vote.”

 

Farmers voted to end the checkoff program that funds NPPC through the National Pork Board by a margin of 53% to 47%, yet the NPPC convinced the USDA to continue the program despite its lack of support.

 

“NPPC is not only ignoring the increased chokehold that meat packers have on independent pork producers, it is helping in the demise of the open market,” stated Michael Stumo, general counsel for OCM.  “The open market will be gone in two years.  Independent pork producers need to seriously consider whether to start a new national organization.”

 

In a recent study contracted by NPPC, Glenn Grimes of the University of Missouri found that the open market, from which nearly all price discovery is derived, may not exist in two years.  Results indicated that only 17% of hogs were sold on the spot market in 2000, compared to 26% in 1999 and 62% in 1994.  Packers owned 27% of the hogs in 2000, compared to 24% in 1999 and 6.4 % in 1994.  The other non-spot market hogs were committed to packers via contracts.

 

“It is painfully clear that NPPC has ignored the interests of hog farmers and endorsed the ‘chickenization’ of the pork industry,” said Stokes.  “Take a look at their lobbying funding.  A far larger share of the money that NPPC receives for doing political issues comes from agribusiness, as compared to producers or members.  NPPC positions closely follow agribusiness positions in Washington and the source of lobbying money explains it.”

 

The Organization for Competitive Markets is a multidisciplinary, nonprofit group of farmers, ranchers, academics, attorneys, and policy makers dedicated to reclaiming the agricultural marketplace for independent farmers, ranchers and rural communities.