Friday, May 20, 2011

147 US Congress members reject proposed GIPSA rule

A rule on the marketing of poultry and livestock that would "make profound changes in the relationship between ranchers and farmers who produce cattle, swine, chickens and turkey and the companies that bring meat and poultry products to market" is being opposed by 147 members of the U.S. Congress.
The rule, proposed by the U.S. Department of Agriculture’s Grain Inspection, Packers and Stockyards Administration, should be withdrawn and revised once GIPSA completes an economic analysis, according to a statement made by Congress. “I am grateful for the action taken by so many members of Congress in urging the Secretary of Agriculture to withdraw and re-propose the GIPSA rule,” said Mike Brown, president of the National Chicken Council. “The GIPSA rule clearly needs more careful review in light of its impact on economic growth, jobs and the administration’s stated goal of doubling exports.”
The USDA published the proposed rule in June 2010 with a cursory economic analysis, and Vilsack has agreed to conduct a more detailed analysis before a final rule is published. Members of Congress also asked for an update from Vilsack on the timeline for completion of the economic analysis and further action on the proposal. The rule would change, among other things, live poultry dealer behavior, including the tournament system often used for poultry contracts and how the contracts are written.

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