NCBA releases plan to increase price discovery
The National Cattlemen’s Beef Association has released its plan to increase price discovery in the cattle industry.
NCBA calls it the “75%” plan. It’s a voluntary and regional approach calling for each region to achieve at least 75 percent of the weekly negotiated trade volume that is, quote, “necessary for robust price discovery in that specific region”.
Ashley Kohls with the Nebraska Cattlemen’s organization tells Brownfield they’re pleased with the plan.
“We’re optimistic that his actually may move the needle as we go into January 1st, when they start measuring negotiated trade against this matrix—this framework,” Kohls says. “We’ll be watching it pretty closely.”
The plan, which will be evaluated on a quarterly basis, contains triggers that must be met. If they are not met, NCBA says it will recommend that the organization pursue a legislative or regulatory solution to compel robust price discovery.
Iowa cattle feeder Brad Kooima, who was part of the working group that developed the framework, thinks that threat of possible government mandates will bring about change.
“It is our hope that, voluntarily, we get to the goals that we need. But there are some of us that feel like, without that lever—if we don’t—then something else happens,” Kooima says. “We’re hoping that’s the leverage that does create change voluntarily.”
Kooima made those comments in an NCBA Beltway Beef podcast. He also visited with Brownfield about the plan.