OCM to Co-Sponsor Livestock Price Crisis Meeting in Amarillo, Texas

The Organization for Competitive Markets (OCM), Desha Agrimedia and R-CALF USA (United Stockgrowers of America) will hold a Livestock Price Crisis Meeting in Amarillo, Texas on July 25, 2002. The meeting will be held from 8:30 am to 4 pm at the Clarion Hotel in Amarillo. This will be an informational session on market failures with a focus on potential solutions. Attendees will vote on their top market competition priorities at the end of the meeting. All U.S. livestock producers are invited to attend.

U.S. livestock producers are suffering from a devastating price crash, which is not explained by the market fundamentals. Large numbers of producers have lost substantial amounts of money and equity; consequently many will be forced out of the business.

Yet, meat packers and retailers are increasing margins and profits. In fact food giant Tyson/IBP reported their fiscal second quarter net earnings had increased $65 million, as of March 30. Retail supermarket profits have increased even more than packer profits. While antitrust law is designed to address this mis-allocation of resources and profits, enforcement agencies have been less than equal to the task.

Presentation topics:

1. Packer Concentration: The problem of monopoly;

2. Captive Supplies: Shrinking demand in the cash market;

3. Rebirth of the Packers & Stockyards Act: Pickett v. IBP and newly filed antitrust cases against the Big 3; and

4. Futures Markets: To fix or to ditch

The Place: Clarion Hotel, 7909 IH-40 East and Lakeside, Amarillo, TX (806.373.3303)

The Time and Date: 8:30 am to 4 pm, Thursday, July 25, 2002

Invitees: All U.S. livestock producers.

Presenters:

Larry Desha, Desha Agrimedia

A Texas viewpoint

Fred Stokes, President, OCM

Problems and solutions in the cattle market

Bill Bullard, CEO, R-CALF USA

Challenges and opportunities in trade and marketing

Robert Taylor, Auburn University

Concentration and captive supplies: the numbers

David Domina, attorney, Domina Law

The role of the courts: Pickett v. IBP

Michael Stumo, general counsel, OCM

Is it efficiency or market power?

Luke Schweiterman, livestock futures broker, Schweiterman, Inc.

Futures markets: Fix ‘em or ditch ‘em

Open microphone period and vote on market priorities

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.

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