Rapid changes in the number, size and makeup of businesses in the beef industry, and shifts from traditional ownership and marketing patterns have raised questions about the beef industry s future structure. In this dispersed, segmented beef industry, industry structure will continue to evolve as is shaped by competitive market forces. The beef industry cannot halt change in the domestic pork and poultry industries, nor can it change the makeup of the beef industries in competing countries. Operators in the segmented beef industry have adapted in order to compete. Efficient markets, especially in situations with many sellers and few buyers, require greater availability of accurate and timely information.
Data availability helps ensure that competitive market forces exist.
Fewer buyers cannot have undue leverage when market information is widely available to more sellers. Government policy such as mandatory price reporting will work to ensure that cattle producers have access to more market information. The law calls for mandatory reporting of prices paid for cattle, boxed beef and exports. It also assures competitive pricing as the beef industry goes through a difficult transition. NCBA will aggressively work to restore trust and confidence in cattle and beef markets, assuring that the government doesn t compromise the free-market system.