October 20, 2021


  1. The beef cattle industry is one of the most complicated markets in agriculture.

  2. With respect to fed cattle pricing, research shows that AMA's (alternative marketing arrangements) do not create market power because they do not change underlying supply and demand fundamentals.

  3. Most economic research confirms that the benefits to cattle producers due to economics of size in packing largely offset the costs associated with any market power exerted by packers. Research indicates that there is market power, but its effect has been small.

  4. There was general agreement that price discovery in fed cattle markets is still robust despite the fact that less than 30% of the transactions are negotiated.

  5. The experts repeatedly stressed the cyclical nature of the cattle business. Recently, cattle supplies have outpaced available packing capacity. The decline in packing capacity has occurred over several decades.