Nebraska Pork Producers Association, Inc. / For Immediate Release: March 10, 2000
(Lincoln, Neb.)-According to key leaders of the Nebraska Pork Producers Association (NPPA), a major Nebraska-based packer has wrongfully misled the public. Per the recommendation of NPPA legal counsel, the name of this packer is being withheld from this release.
NPPA has learned, from direct comments made by company officials, that the company distributed a Nebraska Legislative Alert, March 6, to their buying stations as well as those Nebraska pork producers who sell hogs to them.
This Alert specifically dealt with AM 2420, an amendment to LB 1071.
NPPA emphatically declares the Alert inaccurately states the Association's position on AM 2420. According to the Alert, "It is anticipate(d) that Nebraska State Senator Cap Dierks will introduce (shortly - maybe even this week) an amendment on his priority bill, LB 833 currently on General Orders for debate and vote, which will have a major impact on the contracting of hogs. The Nebraska Cattlemen have asked to be excluded from the amendment and we understand that they will be. The amendment does have the support of the Nebraska Pork Producers. This is a critical amendment and it is crucial that producers should be encouraged to contact their state senators explaining the amendment is not necessary and could hurt Nebraska pork producers."
NPPA as well as the Nebraska Cattlemen have not supported amendment AM 2420. "What this particular packer has stated most assuredly is not our position. Moreover, as it stands now, there is no amendment, only discussion on a draft amendment," said Joy Philippi, NPPA President. "I and other NPPA leaders have received numerous calls from producers who are livid. It is extremely unfair that such an inaccuracy, created by a single company, is causing an astronomical wave of confusion and anguish."
"The Nebraska Pork Producers Association is a producer organization working to help maintain profitability and lessen the control and ability of packers to negatively affect their profitability. NPPA is in no way trying to eliminate the ability of producers to contract," said the NPPA executive director, Steve Cady. "This packer is leading the public to believe otherwise. We cannot help but question the motives of a company who would release such information at a pivotal point in the drafting of legislation that has the potential to greatly affect Nebraska's producers."
On Feb. 29, Sen. Dierks invited Cady, on behalf of NPPA, and leaders from the Nebraska Farm Bureau, the Co-op Council and the Cattlemens Association to discuss and draft amendment AM 2420, a draft amendment to LB 1071. At that time the consensus was to not support the amendment because of the clause it contained about control. It appears as though LB 1071 will not pass out of committee, therefore the group determined that some of the language might be added as an amendment, in the form of AM 2641, to LB 833. LB 833, Competitive Livestock Markets Act, is a priority bill for Senator Cap Dierks. AM 2641 addresses packer contracts - more specifically, a producer's right to renegotiate contract terms if the packer decides to change the contract pricing grids during the span of the contract.
"As of today, we still have not made a final decision as to our position on the draft version of AM 2641," said Philippi. The NPPA Board of Directors will fully discuss their options and determine their support or lack there of at their Spring Board of Directors meeting, Monday, March 13.
"We only know for certain that we have made it very clear that we do not support the amendment referred to in the Alert, AM 2420. The packer who distributed this Alert used outdated information and falsely stated our position; worse yet, they appear to be unwilling to make a correction," said Cady.
NPPA contacted the company for an explanation and asked that the appropriate measures be taken to correct the false statement. "We were lead to believe a retraction would be distributed by the packer but one has yet to be seen. The state's producers do not understand why they are being ambushed. They are not revengeful; they just want to be treated fairly," stated Cady.
NPPA, a grassroots organization created to promote the swine industry through research, promotion and education, represents Nebraska's pork producers on a wide variety of industry and public policy issues. Annually, Nebraska's pork industry generates approximately $3.5 billion in state economic activity and employs 33,000 Nebraskans from the farm through processing.:
