The USDA’s Agricultural Marketing Service (AMS) has announced the final rule implementing mandatory wholesale pork price reporting, as required by the Mandatory Price Reporting Act of 2010. The rule outlines what information packers will be required to submit to AMS, how the information should be submitted and other requirements.
USDA developed the rule through negotiated rulemaking by a committee including members representing pork producers as well as pork packers, processors, retailers, and buyers. The rule requires packers to submit the price of each sale, quantity, and other characteristics (e.g., type of sale, item description, destination) that AMS will use to produce market reports that will be made public.
The National Pork Producers Council (NPPC) worked to get the reporting provision included in legislation that reauthorized the Livestock Mandatory Reporting Act and helped develop the regulation as part of a negotiated rulemaking process.
“America’s pork producers are grateful for USDA’s cooperation in helping develop this valuable tool for pork producers since it is becoming increasingly common to sell hogs based on the cutout price,” said NPPC President R.C. Hunt, a pork producer from Wilson, N.C. “This important addition to the price reporting law allows for a more competitive market and will provide greater transparency in the livestock market.”
Implementing the mandatory wholesale pork reporting program provides market participants with considerably more market information than they have had in the past, according to AMS. “A mandatory wholesale pork reporting program will ensure that accurate, unbiased market information is available to all market participants, benefitting consumers through improved price discovery in the sector,” said Craig Morris, deputy administrator of the AMS Livestock and Seed Program.
The Mandatory Price Reporting Act of 2010, passed by Congress, added wholesale pork cuts to the commodities required to be reported by larger packers through the livestock mandatory reporting program. Cattle, swine, sheep, boxed beef, boxed lamb, and imported lamb meat already are covered under the program.
Notice of the final rule will be published in the Aug. 22 Federal Register. The program will be effective on Jan. 7, 2013.