The long-awaited rule implementing a law that requires meat packers to report the prices that they pay food-animal producers was issued today.
The Livestock Mandatory Reporting Act was first approved in 1999, it was then amended and reauthorized in October 2006. USDA administers the act, which is designed to provide information to producers, packers and other market participants related to pricing, contracting for animal purchases as well as supply and demand conditions for livestock, livestock production and livestock products.
Packers have been voluntarily reporting livestock prices since the law expired on Sept. 30, 2005. By making the reporting mandatory, means that USDA can then audit the reports, points out the National Pork Producers Council.
“During this time of economic crisis for many pork producers, having mandatory price reporting helps producers make business and production decisions that will let them get the best price for their hogs,” says Bryan Black, NPPC president and Ohio pork producer.
The reauthorized price reporting law, which will take effect on July 15, includes three enhancements to the pork reporting provisions:
More sows are included in pricing reports to more accurately reflect the sales and prices paid in the sow market.
Changes in the timing for data reporting to help USDA with its workload and, thus, to increase report accuracy and efficiency.
USDA may publish price distributions for net prices to provide more information that is more reflective of market situations.
Source: National Pork Producers Council