NCBA Chief Executive Officer Colin Woodall sent a letter yesterday to the North American Meat Institute and the four major beef packing companies asking them to be aggressive in the cash market and base their bids on the increased cutout value. The letter stated this would help with market liquidity and transparency, thus helping bring some stability back to the cattle markets.
This request comes in response to the Coronavirus pandemic that has sent shockwaves through the global economy, leading to a major downturn in the cattle market. The price of boxed beef continues to increase due to strong demand in the retail segment, but cash price for cattle has taken a significant hit.
“This is a national emergency that is impacting every American. It will have a lasting impact on America’s cattle producers, your suppliers, unless something changes immediately,” Woodall stated in the letter.
NCBA and KLA are continuing to engage with Congress, USDA and other regulatory agencies to ensure the entire beef supply chain remains fully operational. For more information on the actions that have been taken, go to www.kla.org. KLA members are encouraged to contact staff with any questions or concerns about the current situation.