ORGANIZATION FOR COMPETITIVE MARKETS

P.O. Box 6486

Lincoln, NE 68506

Web site: www.competitivemarkets.com

Date: January 28, 2003 For Immediate Release

Contact: Michael C. Stumo: 860.379.6199

OCM Announces Major Initiative on Cattle Industry Competition:

Cattlemen’s Competitive Market Project

Lincoln, NE. It’s all about horsepower. The majority of cattlemen across the nation agree that they continue to suffer from low market prices while packer and retail margins have steadily increased to record levels. They also agree on the reasons why: concentration at the packing and retail levels and captive supplies, which have destroyed the free market system. So what’s missing? A vessel that’s capable of defining the problem, centralizing strategy and coordinating a nationwide effort to effectively impact policy decisions so crucial to restoring true competition in the marketplace.

That vessel is missing no longer. "The Cattlemen’s Competitive Market Project (CCMP) has been developed to provide the tools producers need to address today’s market issues," says Michael Stumo, general counsel for the Organization For Competitive Markets. "Never before has there been an effective program to centralize efforts to restore true competition in the marketplace. This is a ‘no frills’ solution-oriented program, backed by a steering committee of experienced individuals who derive their income directly from the cattle industry. Our mission is three-fold: to present the legal and economic case for antitrust enforcement, to provide for the appropriate research and data analysis needed to support that case, and to develop a communications ‘arm’ to deliver the message to consumers, policy makers, and the media on the crucial importance of competition," Stumo says. "Until now cattlemen have lacked the horsepower to win the competition battle but CCMP is the answer."

According to Jerry Adamson, a Valentine, NE cattleman and steering committee member, CCMP will bring together the brightest minds, the best ideas and the most comprehensive strategy to solve the issues of reduced competition and market fairness. "Those who so adamantly oppose competition and the enforcement of antitrust laws have full time staff, legions of attorneys and researchers working day in and day out to protect their interests. So far, they’ve been successful. USDA has failed to protect competition, claiming that by doing so will harm meat packer efficiency. Cattlemen’s interests are virtually lost in an orchestrated attack, whether that’s from the well-heeled American Meat Institute, the Food Marketing Institute or misguided producer organizations. CCMP has been established with a singular purpose in mind – to win the ongoing war against competition, giving grassroots producers an effective voice," said Adamson.

Stumo says the CCMP Steering Committee will provide practical advice and guidance to assure that all efforts focus on grassroots concerns and to see to it that the overall program remains cost-effective. "All contributions to the CMMP will be voluntary," Stumo says. "This is a call to arms. We’re inviting per-head contributions from willing participants like feedlots and auction markets along with other sources. Because all contributions are voluntary, producers will be in control of funding. Our opponents have deep pockets, but through a collective per-head contribution, we can gather the necessary funding in a relatively painless way."

The CCMP Steering Committee includes Tom Spencer, Circle T Cattle Company, Pueblo, CO; Brett Gottsch, Gottsch Feeding Corp., Elkhorn, NE; Randy Stevenson, Double S Livestock, Wheatland, WY; Korley Sears, Ainsworth Feedyars, Ainsworth, NE; and Jerry Adamson, cattleman, Valentine, NE. According to Stumo, the Organization For Competitive Markets (OCM) Board of Directors will ultimately be responsible for project accountability.

Contributions to CCMP will be tax deductible because OCM is a non-profit, charitable organization. Annual audits will be conducted and will be subject to disclosure to all contributors.

"In the past, we have given money to those who claimed to be strong advocates of our interests, only to find that they opposed our efforts to make our markets function competitively and fairly. We cannot make that mistake again," says Sears. "CCMP will be fully accountable and those who pay the bills will be in control. Those of us who have already signed on with the project have made accountability and effectiveness our primary goal." In the near future, Sears says, Steering Committee members will begin making personal contacts with feedlots, auction markets and individual producers throughout the Central Plains to present the program and seek funding.

Gottsch says a CCMP Research Advisory Committee has also been established, which will function in tandem with the Steering Committtee to help identify research needs, oversee research projects, provide for data analysis and engage in writing and presentation of white papers. The Research Advisory Committee includes Dr. Neil Harl, Agricultural Law, Iowa State University; Dr. Ron Cotteril, Agricultural Economics, University of Connecticut; Dr. Roger McEowen, Agricultural Law, Kansas State University; and Dr. Peter Carstensen, Antitrust Law, University of Wisconsin. "These individuals represent some of the finest minds in academia today," says Gottsch. "They’ve been asked to serve in a capacity that will provide the intellectual and analytical horsepower cattlemen need to make their economic and policy cases."

Steering Committee member Tom Spencer says he’s thrilled at the opportunities CCMP presents. "Finally, cattlemen have the chance to get behind a program that will be responsive to their interests and one that will, in turn, be responsible to them. I’ve chosen to support this program because I believe in it and I intend to do everything in my power to see it succeed."

If you’d like more information on the Cattlemen’s Competitive Market Project, contact Michael Stumo at 860/379-6199.