WPX 2011: Renewed Call for Rethink on GIPSA Rule

US - If the new Grain Inspection, Packers and Stockyards Administration (GIPSA) rules in the US farm bill come into force, they could see the pig industry shrink by two per cent.
calendar icon 10 June 2011
clock icon 2 minute read

Speaking at the World Pork Expo, National Pork Producers Council Director Mark Legan said that the new rules could cost the agricultural industry $1.5 billion and the pork industry about $740 million.

He said the NPPC was concerned that the rules will place additional regulations on producers and alter the way they draw up marketing contracts with processors and other producers.

They will also change the competitive marketplace for producers.

Mr Legan said the NPPC was concerned that the rules had been drawn up on a flawed analysis from the USDA and the council called for a new analysis of the situation.

He said the present rules could speed up the integration of the industry.

The final rule is expected to be issued later this year, but Mr Legan said that a number of congressmen have already raised objections and have also called for a rethink.

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