The Montana Cattlemen’s Association (MCA) believes most American consumers want to know about the food they eat and where it was produced.  In the case of beef, the origin of the product is very important.  US producers are required to follow strict standards on how our animals are treated, what they are fed, and what drugs they receive.  Every animal slaughtered here must pass premortem and postmortem USDA inspections before it can enter the retail and prepared food market.  It is highly doubtful that all the imported beef follows all of these strict standards.

Since the repeal of the original MCOOL, the blatant misuse of the Product of USA label has pulled the wool over the eyes of the consumer.  We feel American consumers and cattle producers deserve to have more respect and rights than the huge multi-national processors that process over 80% of our product.  They profit from the current situation of “beef is beef no matter where in the world it is produced”, while the consumers are being taken advantage of and U.S. cattle producers receive even less of each dollar spent on beef.

In this case, it appears that the only way to force change is through legislation.  MCA fully backs the proposed bills circulating in the US Congress that will allow beef to be properly labeled with its country of origin.

Senate Bill S.2716, The American Beef Labeling Act of 2021, we feel is very important because it calls for a mandatory “Origin: USA” label to be placed on product that is born, raised, and slaughtered in the USA.  All other beef that does not fit these criteria will not have to be labeled as to origin; but it will also be illegal to be labeled with the Product of USA label.  When enacted, it will be World Trade Organization compliant so we do not take the chance of having it repealed again.  And yes, it is still hard to understand why any outside organization can dictate to us what we can and can’t do within our own country.  Let’s hope our government is on our side this time.

We feel this will be very easy to implement because it had been done up until late 2015. Most of that same infrastructure is still in place from processor through wholesaler through retailer.  Prepared food services, such as restaurants, could placard their establishments as to the origin of their beef or even identify each item on their menu if they preferred.

We also agree that Senate Bill S.2623 and House Bill HR 4973, both titled the USA Beef Act, would complement the American Beef Labeling Act.  Our consumers are very used to seeing the Made in USA label.  If the label was used correctly, it would have tremendous impact on their buying habits.  The threat of possible fines administered by the USDA (which currently appears to turn a blind eye to the deceptive use of the Product of USA label) would be a very welcome change.

In closing, the current political regime in power in Washington appears to be in favor of only purchasing products produced in the USA as stated in an issued executive order.  The Secretary of Agriculture and the FTC are also in favor of a truthful label with possible fines for violators.  We are still going to have an uphill battle to get these bills through, but now is the time to try.

Montana Board of Directors

WASHINGTON (November 9, 2021) – Sens. Chuck Grassley (R-Iowa), Deb Fischer(R-Neb.), Jon Tester (D-Mont.), and Ron Wyden (D-Ore.) are announcing a compromise cattle market proposal, known as the Cattle Price Discovery and Transparency Act. The bill is part of Grassley’s ongoing effort to return fairness to the cattle marketplace dominated by four major meat packers.

“I frequently hear from Iowa’s independent cattle producers about their struggle to get a fair price for their cattle while the nation’s four largest packers operate in the shadows. I pushed for hearings in the Senate’s Agriculture and Judiciary committees to shine a light on the market unfairness and now have partnered with a bipartisan group of senators to develop a solution.  This bill takes several steps to improve cattle price transparency and will improve market conditions for independent producers across the country,” said Grassley, a member of the Senate Agriculture Committee and ranking member of the Senate Judiciary Committee.

“Robust price discovery ensures that all members of the beef supply chain — cow-calf producers, feeders, packers, and consumers — can be successful. The foundation of price discovery in the cattle market is negotiated cash sales. One or two regions of the country should not have to shoulder the burden of price discovery and that’s exactly what has been happening. Furthermore, even regions that primarily use alternative marketing arrangements (AMAs) such as formula contracts predominantly rely on negotiated cash sales to set their base prices. Our compromise proposal takes regional differences into account and ensures fairness for every segment of the supply chain.” said Fischer, a member of the Senate Agriculture Committee.

Montana ranchers raise the best beef in the world, and more market transparency and fairer prices are essential to fighting consolidation and keeping smaller operations strong. Increasing spot transactions will give producers more control and better information when they sell their livestock, which is critical to helping them meet their bottom line. That’s how we keep markets fair and ensure Montana’s producers remain competitive,” Tester said.

“Family ranchers in Oregon are struggling as they continue to recover from the economic fallout of the pandemic, on top of a cattle market that sets them up at a disadvantage and delivers big for corporate meat packers. Our bipartisan coalition has one aim: level the playing field for the cattle ranchers in our states and allow them to grow their small businesses by restoring market fairness, efficiency, and transparency,” Wyden said.

The senators plan to introduce the Cattle Price Discovery and Transparency Actin the coming days. The legislation will:

July 15, 2021

Sarah Feldman | 202.604.5521

Roy Loewenstein | 202.913.0188

Andy Bixler | 406.230.1721