Opposition to GIPSA intensifies

Sixteen leading food-producing states are now opposing the new rule

The proposed changes to the relationship between contractors and integrators proposed by the USDA Grain Inspection, Packers and Stockyard Administration (GIPSA) is intensifying. The Agriculture Commissioners of 16 leading food-producing states are now opposing the new rule under the leadership of Todd Staples, Agriculture Commissioner of the state of Texas.

Collectively, the opposing states represent 43% of U.S. poultry production and a slightly lower proportion of pork and cattle output. It is the considered opinion of the Agriculture Commissioners that the rules would “fundamentally and drastically changes sophisticated market system.”

In press releases issued by the National Chicken Council, the American Meat Institute, the Food Marketing Institute, International Food Service Distributors Association and the National Council of Farmer Cooperatives, all the organizations deprecated the proposed changes citing the potential for disorder in the market place, jeopardizing the viability of brands and programs and negatively affecting the profitability of cooperatives and their farmer-owners.

The American Meat Institute stated, “GIPSA is hurtling down a path based on anecdotal innuendo but with no regard to the truly significant adverse economic and social consequences this rule would have on livestock producers, consumer and the meat and poultry industries.”