Opening Statement of Ranking Member John Boozman at the Hearing Entitled Examining Markets, Transparency, and Prices from Cattle Producer to Consumer

WASHINGTON— U.S. Senator John Boozman (R-AR), Ranking Member of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, released the following opening remarks, as prepared, from the hearing entitled “Examining Markets, Transparency, and Prices from Cattle Producer to Consumer”:

Thank you Chairwoman Stabenow for setting the stage for this afternoon’s hearing.

The topic we are here to learn more about is very important to a number of senators both on and off this committee.

The U.S. cattle industry has a storied history. It is the backbone of many rural economies and represents the largest segment of agriculture in many parts of the country.

Many success stories are associated with this industry as it has carved out its place as the world’s most sustainable producer of high quality beef.

In 2019, 14 percent of the beef produced in the U.S. was exported, generating $8.1 billion in value. By comparison, in 1990 only four percent of the beef produced in the U.S. was exported.

Correlating with this growth in exports is the increased quality of beef produced in the U.S. Today, nearly 85 percent of the beef produced in the U.S. is grading prime or choice. In the early 2000s, only about 50 percent of our beef earned these high quality grades.

This improvement in quality is due to producers making investments in their herds—in genetics, management and feeding practices— to produce higher quality and more diverse products for the global consumer base.

These investments are being made across every segment of this complex and inter-connected industry—from the cow-calf producer, to the backgrounder, packer, and further processor—to provide the wholesaler, retailer, exporter and ultimately the consumer a growing variety of nutritious beef products.

While this industry is diverse and modernizing in numerous ways, the nature of the beef cycle dictates that the industry is slow to adapt to even the most immediate changes.

The ribeye I’m having for dinner tonight was derived from a steer that was conceived over two and a half years ago. While changes can be made in the cattle industry overnight, the effects of those changes may not be realized for years.

And when any one segment of this industry experiences an unexpected event—like the fire that occurred at the beef plant in Holcomb, Kansas in 2019—it ripples throughout the supply chain.

When every segment of the cattle industry experienced the effects of the COVID-19 pandemic—that ripple effect was amplified in a manner that has been unmatched throughout modern history.

Though we are moving beyond the havoc wreaked by COVID-19, new challenges are now confronting this industry—a worsening drought in the west that is creeping into the Plains, increasing input costs, severe labor shortages that are limiting utilization of packing capacity, supply chain challenges at our ports that have been worsening for months, and the threat of regulatory overreach.

The past two years have been some of the most difficult this sector has ever experienced. Mounting frustration is resulting in calls for widespread reform of the cattle industry due to these difficulties.

We must carefully consider reforms in response to the exceptional black-swan events that have occurred since 2019, and the consequences, both intended and unintended, of such actions.

An increasing number of producers are marketing their cattle through alternative agreements to manage risk and buffer themselves from market volatility, while also capturing gains for the value-added investment made to their herd.

Yet we are hearing questions about whether current market conditions allow for adequate price discovery for fed cattle, and the effect that a thinning cash market could be having throughout the supply chain.

I’m interested in hearing perspectives from our stakeholders on these topics, and for the committee to gain a better understanding of the impacts of proposed reforms on beef producers, processors, marketers, and consumers.

I thank all of our witnesses for their participation in this important hearing and helping this Committee learn about this multifaceted industry and the unique challenges it faces.

Madam Chairwoman, I have received several letters and written testimonies from cattle producers and stakeholder groups who are interested in today’s hearing. I request unanimous consent to include these documents in the record.

Thank you Madam Chairwoman and thank you for convening today’s hearing. I yield back the remainder of my time.