A project of the
Organization for Competitive Markets
 
Date: September 3, 2003
FOR IMMEDIATE RELEASE
 
Contact: Steve Cady: 402.792.0041

OCM’s Hog Competition Fund Endorsed
by County Producer Groups in Iowa

Lincoln, NE ~ The Organization For Competitive Market’s (OCM) Hog Competition Fund (HCF) was endorsed by the Kossuth County Pork Producer’s Association and the Palo Alto County Pork Producer’s Association during the last week of August. Both Iowa counties are among the top hog production counties in the state.

Dave Bjustrom, Kossuth County Pork Producer’s Assoc. president, says the board of directors feels strongly that competition and price discovery are the primary issues in the pork industry today. "Pork producers, whether they’re involved in independent or contract production, know their number one issue is profitability. The time is ripe to push aggressively in both of these areas. We hope to obtain the support of other county and state pork producer organizations and will be working towards that goal."

Lisa Siebrecht, Palo Alto County Pork Producers secretary, says HCF will be key to the survival of independent producers. "After fighting for the independent pork producers for years, it became evident the reason our plight was falling on deaf ears was because almost everyone, from legislators, to economists, to the consumer, and even some of our own livestock groups were mistaking market power for economic efficiency. I call it the Wal-Mart mentality. Bigger does not mean increased efficiencies. To the delight of the packers, processors and retailers, many in our industry are so focused on debunking environmental and animal rights groups they ignore what is really killing our industry and that’s loss of competitive markets. That loss has, and continues to be, what is putting pork producers out of business or forcing them into less than favorable marketing agreements."

OCM announced the establishment of HCF on August 26. OCM is a multidisciplinary, nonprofit group of farmers, ranchers, academics and attorneys dedicated to reclaiming the agricultural marketplace for independent farms, ranchers and rural communities. OCM has become a major force in the national agricultural policy debate through its research and advocacy on the issues of concentration, antitrust and competition bringing together scores of farm, rural, consumer, faith-based and other groups working together for fair and equitable agricultural markets.

Michael Stumo, OCM’s legal counsel, recently completed a swing of hog producer meetings in Iowa and surrounding states measuring support for HCF. "I was pleasantly surprised at the extent of positive response. Although this effort should have begun 10 years ago, we cannot get to the end unless we start at the beginning. Hog producers are suffering from low market prices even as consumer pork prices continue rising at rates above that of general food inflation. Meat packers and retailers are using undue market power to increase their share of the consumer dollar at the expense of both consumers and producers. Further, packers are changing contracts and formula pricing arrangements unilaterally every day to the detriment of producers. HCF will remedy this scenario by incorporating antitrust law and economics to bring the pro-competition effort to a whole new level," commented Stumo.

HCF is a completely voluntary program. Producers are encouraged to enroll estimated production in the program at a rate of ten cents per head. All contributions are tax deductible under OCM’s non-profit status.

HCF functions under the guidance of a steering committee that includes Stan Rosendahl, Rosendahl Farms, Creston, NE; Jim Merritt, Elbow Lake, MN; Linus Solberg, Cylinder, IA; Max Waldo, Waldo Farms, DeWitt, NE; and Dave Bjustrom, Kossuth County, IA.

If you’d like more information about the Hog Competition Fund or would like to enroll, contact Michael Stumo (860.379.6199) or Steve Cady (402.792.0041).

CCMP is not a membership organization. Funding comes from livestock auction markets and independent feeders on a per-head basis at the point of sale. All contributions are tax deductible under OCM’s non-profit status. For more information, contact Steve Cady at 402.792.0041 or visit the web site at www.competitivemarkets.com. 

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.