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Pork producers, AMI praise pork mandatory price reporting rule

Both the National Pork Producers Council and the American Meat Institute have praised the Agriculture Department's final rule on mandatory price reporting, which was published in the Federal Register today.

The rule, which goes into effect on January 7, implements mandatory wholesale price reporting as required by the Mandatory Price Reporting Act of 2010.

The act added wholesale pork cuts to the commodities required to be reported by larger packers through the livestock mandatory reporting program. Cattle, swine, sheep, boxed beef, boxed lamb, and imported lamb meat already are covered under the program.

The final rule outlines what information packers will be required to submit to the USDA Agricultural Marketing Service, how the information should be submitted and other program requirements. The rule requires packers to submit the price of each sale, quantity, and other characteristics such as type of sale, item description and destination that AMS will use to produce market reports that will be disseminated to the public.

Craig Morris
Craig Morris
“Implementing the mandatory wholesale pork reporting program provides market participants with considerably more market information than they have had in the past,” AMS Livestock and Seed Program Deputy Administrator Craig Morris said in a news release.

“Further, a mandatory wholesale pork reporting program will ensure that accurate, unbiased market information is available to all market participants, ultimately benefitting consumers through improved price discovery in the sector.”

The National Pork Producers Council, which worked to get the pork reporting provision included in legislation that reauthorized the Livestock Mandatory Reporting Act in September 2010, praised the final rule.

R.C. Hunt
R.C. Hunt
“America’s pork producers are grateful for USDA’s cooperation in helping develop this valuable tool for pork producers since it is becoming increasingly common to sell hogs based on the cutout price,” said NPPC President R.C. Hunt, a pork producer from Wilson, N.C.

“This important addition to the price reporting law allows for a more competitive market and will provide greater transparency in the livestock market.”

The American Meat Institute, whose members will have to make the reports, also praised the ruling, which was developed by AMS with the help of an industry panel.

Mark Dopp

Mark Dopp
“We are pleased by the publication of the mandatory price reporting final rule for wholesale pork,” said AMI Senior Vice President of Regulatory Affairs and General Counsel Mark Dopp.

“The rule reflects an industry consensus that was achieved through the negotiated rulemaking process. The final rule offers a practical approach to improving market transparency.”