September 21, 2011

US grapples with critical issues on meat industry

There are a number of decisions that could affect the meat industry as Congress and the administration grapple with issues, including an upcoming farm bill and proposed USDA regulations, according to National Meat Association CEO Barry Carpenter's speech to meat processors at the North American Meat Processors Association annual conference.

Proposed user fees for poultry and meat plant inspection services are top of mind for the meat industry as Congress debates spending cuts through the appropriations process.

Carpenter warned that just as the meat industry is trying to stop these fees from coming to pass, so does every other industry that is trying to protect their interests, but significant spending cuts still must be made.

He said if the so-called "super committee" of legislators tasked with coming up with US$1.5 trillion in future spending cuts over ten years fails or Congress fails to pass those cuts by December 23, then US$1.2 trillion in across-the-board cuts will go into effect, leaving the meat industry little chance to row back on specific cuts that affect the industry.

Last week, 20 groups sent a letter to the committee warning the fees would boost meat prices at a time lower and middle class families can ill afford it.

NMA and other meat industry groups are also fighting controversial livestock marketing rules proposed by USDA's Grain Inspection, Packers and Stockyards Administration on three fronts – regulatory, legislative and through litigation.

Carpenter said NMA has been pushing the White House to reconsider the proposals, working with legislators to eliminate the proposals in the next farm bill and if necessary, would seek a preliminary injunction to stop the rules from going into effect.

Carpenter warned that a congressional committee is working on bill that would mandate meat processors to use the government's E-Verify program to screen worker eligibility. Under the legislation, meat processors could face criminal penalties "for things you can't control, like identity theft."

The House Judiciary Committee is expected to finish marking up the bill, sponsored by Lamar Smith (R-Texas), this week.