U.S. Sen. Mike Rounds (R-SD) is addressing the nation’s ongoing cattle market crisis, which has been magnified during the recent COVID-19 pandemic.
“We’re at the point where many South Dakota ranching families are on the brink of going under. This is unacceptable,” Sen. Rounds said on March 19. “However, there are steps we can take to reverse this trend if we act now.”
In addition to the coronavirus, Sen. Rounds said that cattle producers have suffered from an undervalued product and low market prices, despite a consistent and growing demand for U.S. beef.
“Today, I’ve taken a number of steps that I believe would provide much-needed assistance for our cattle producers,” he said on Friday.
Among those steps are those to provide immediate relief for cattle producers who are being harmed due to COVID-19 market disruption; supporting efforts to reinstate Mandatory Country of Origin Labeling (MCOOL); and urging a federal investigation into multiple allegations of anti-trust violations by meatpackers, according to the senator.
“Our producers are on the frontlines of our food supply chain,” said Sen. Rounds. “We cannot allow unjustified, unfair and unwise practices to put them at a disadvantage — or worse — force them out of business altogether.”
Sen. Rounds said he has asked the U.S. Department of Justice to investigate continued allegations of price-fixing within the cattle market, and to answer whether a packer oligopoly exists within the cattle market that creates an anti-competitive marketplace.
“The reality is that there is an inverse correlation between the producer’s price and the consumer’s price,” said Sen. Rounds. “We want to know why. If the Department of Justice finds that there are no violations, then we must reconsider the statutory environment of this industry, because the status quo isn’t working.”
Likewise, the senator sent a March 19 letter to President Donald Trump urging that he remove trade barriers to MCOOL for commodities, including beef and pork, in trade negotiations with Canada and Mexico.
And Sen. Rounds on March 20 sponsored a bipartisan bill, S. 3552, with lead cosponsor U.S. Sen. Jon Tester (D-MT) to require the U.S. Secretary of Agriculture to provide payments to cattle producers to offset losses due to COVID-19, according to the congressional record bill summary.
The bill, which has eight other cosponsors, has been referred for consideration to the U.S. Senate Agriculture, Nutrition, and Forestry Committee.