Kansas Congressman Roger Marshall, a Republican and a member of the House Agriculture Committee, was appreciative of the U.S. Department of Agriculture releasing one of its reports about the impact of the Tyson beef plant fire in Holcomb in August 2019, and he noted the continued investigations by federal agencies into investigations about market manipulations.
“The closure of the Tyson beef packing plant in Holcomb, Kansas, after a fire at the facility, and the COVID-19 pandemic clearly disrupted the markets and processing systems responsible for the production and sale of U.S. beef,” said U.S. Secretary of Agriculture Sonny Perdue. “The report examines these economic disruptions and the significant increase in the spread between boxed beef and fed cattle prices that resulted from them. While we’re pleased to provide this update, we assure producers that our work continues in order to determine if there are any violations of the Packers and Stockyards Act. If any unfair practices are detected, we will take quick enforcement action.”
Excepts from Marshall’s statement issued on July 24,
“The USDA’s report on price spread between fed cattle and boxed beef prices following both the Kansas packing plant fire in August 2019 and the ongoing COVID-19 pandemic was helpful and indeed highlighted the substantial impact both events have had on the beef industry. While this report is useful in outlining solutions and reforms we can act on immediately, I continue to look forward to the conclusion and final findings of both the USDA and Department of Justice’s investigations.
“Kansas is one of the leading beef producing states, representing all parts of the beef supply chain and it is essential the we bring solvency back to our family ranches and livestock owners.”
The USDA in its report has stated that is important that any proposals aimed at addressing these complex issues and others associated with the market disruptions caused by the Holcomb fire and COVID-19 receive careful consideration and thorough vetting given their potential to affect everyone whose livelihood depends on the sale of cattle, beef, or related products. USDA stands ready to assist stakeholders and policymakers as they continue to explore options to improve price discovery, level the playing field between producers and large meatpackers in negotiating prices and procurement methods, and to foster a more transparent relationship between the prices for live cattle and the resulting products.
Dave Bergmeier can be reached at 620-227-1822 or [email protected].
