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While some of agriculture is going through a down cycle, cattle producers are witnessing an increase in prices coupled with rising demand for their product. "This is because the cattle industry has allowed the market to work for it and not relied on government intervention to fix or manipulate the market," said John Greig, a producer and feeder from Estherville, Iowa. Greig recently testified at a Senate Agricultural Committee hearing on industry concentration and competition. NCBA supports the agriculture secretary working with the Justice Department to assess the impact of mergers and acquisitions; ensuring enforcement of antitrust laws; strong oversight to ensure a fair and competitive marketplace; constant evaluation of price movements and margins so potential abuse of market power can be stopped; additional funding for oversight and enforcement of antitrust laws. "We are hesitant, however, to give the government power to influence how the market works," Greig said. "Currently, four large companies slaughter about 80 percent of all cattle. This percentage has not changed in 10 years, yet the cattle industry has witnessed highs and lows that are typical of the cyclical nature of the industry. To better cope with market downturns, cattle producers have formed ways to add value to their product," Greig said. "We do rely on federal regulators to keep the playing field level by ensuring that the marketplace is free from anti-trust, collusion, price fixing and other illegal activities," Greig said. "However, if allowed to work, the market will recover with little government intervention." |
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