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(Continued from Page 1)
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than help consumers of
beef.”
“The administration is
trying to create the impres
sion that it is helpmg con
sumers at a time when beef
prices have been rising,”
said Richard McDougal,
NCA president. “However,
this action is just another
cosmetic approach to the
problem of inflation which
is largely government caus
ed,” he said.
The NCA statement went
on to explain that Carter’s
decision would discourage
cattlemen from rebuilding
their herds while having lit
tle effect on average retail
prices.
“With the industry finally
starting to make a profit,”
McDougal continued, “the
administration chooses to
play political games with the
laws of supply and demand.
It is destroying the very in
centive that is needed to
rebuild herds and eventually
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bring larger beef supplies
and more moderate prices.”
An Adams County cat
tleman, Frank B. Darcey,
Jr., told Lancaster Fanning
in a Friday morning
telephone interview that he
personally, as well as
numerous organizations of
which he is a member, fmd
Carter’s decision unfair and
ill-conceived. He does
acknowledge, however, that
the decision to import beef
could have been much
worse. Darcey figures that
the beef industry’s lobbying
efforts may have tempered
Carter’s final decision
somewhat.
Nonetheless, the Adams
County Hereford breeder
views Carter’s decision with
doubt.
“We’re in the same posi
tion as the consumer, and we
don’t want the consumer to
rebel, as he might because of
the rising beef prices,”
Darcey began. “Bat with
this action we could face a
real beef shortage down the
road.” Pointing out that
there are very few cattle in
the nation’s major beef pro
ducing areas, he foresees
possible shortages in the
future and another price
spiral this Fall. Carter’s ac
tion on Thursday could also
discourage many cattlemen,
thus putting a damper on ex
pansion plans.
“There’s been too much
meddling by the govern
ment,” Darcey observed,
adding that the Adams Coun
ty Beef Producers Associa
tion, of which he is a former
president and founder, had
lodged a formal complaint
on the matter with Con
gressman William Goodling.
Darcey considers Carter’s
beef import plan ill
conceived for several
reasons.
“This just means that
there are many more dollars
leaving the country, fueling
inflation, and adding lo our
already imbalanced trade
deficit,” the beef producer
noted. “It’s downright un
fair,” he continued. “The
beef industry doesn’t ask for
federal money. We don’t like
the peaks and valleys in
prices any better than the
government and consumers,
but if they’d just realize that
it’s the boycotts and govern
ment intervention that cause
the peaks and valleys we’d
be a lot better off. If they’d
m
Lancaster Farming, Saturday, June 10,1978—25
just let things run their
course it would straighten
itself out. When you mess
with an industry - and the
cattle business is an in
dustry, the nation’s biggest
agricultural industry - it’s
just like fooling with Mother
Nature,” he said.
Darcey noted further that
cattlemen did not want
prices to skyrocket the way
they did. They would have
preferred moderate in
creases and not the headline
making high prices seen in
recent weeks.
Agriculture Secretary Bob
Bergland commented a
week ago during a television
interview that any opening
on beef imports would have
no great effect on cattle
prices. He noted that there is
a world-wide shortage of
beef and there would be “no
great influx even if all
quotas were removed
because there just isn’t that
kind of inventory around.”
While President Carter
was being pressured by his
advisors to increase beef im
ports, Congress was in fact
considering legislation to
restrict such trade. The
Senate had already passed
such a measure. Bergland
commented during the TV
interview that he would
recommend that the bill be
vetoed by the President. He
at that time did not feel that
there would be any change in
beef imports.
The cattle industry,
however, felt something in
the wind weeks before
Carter made his controver
sial announcement.
Despite the increase in
beef, beef prices are ex
pected to remain strong all
Summer, says USDA.
Secretary Bergland defends
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that reasoning because there
are 16 million fewer cattle in
the country today than there
were a couple of years ago.
“Cattlemen had to reduce
their herds because they
weren’t making any money
and the drought in the West
last year also forced them to
reduce cattle numbers,” he
explained.
The 1 Secretary said Thurs
day that the foreign beef
would be mostly lean, grass
fed meat which would be
blended with cuttings from
fat American cattle to make
hamburgers. He doesn’t ex
pect any effect on prices un
til late July or early August
and predicts that there’ll be
no effect at all on the expen
sive beef cuts.
The Administration sup
ports its philosophy because
Americans supposedly want
more beef than is available.
Americans are consuming
125 pounds of beef per per
son, said Bergland. “There
isn’t enough beef in the
world to sustain that rate for
the two or three years need
ed to rebuild domestic
herds,” he said.
While the news of increas
ed imports is being welcom
ed in Australia and New
Zealand, where cattlemen
have been hurting worse
than their American
counterparts, U.S. cat
tlemen aren’t convinced that
the Carter Administration’s
plan will help one bit to put
domestic beef supplies on a
track towards adequate sup
plies and reasonable prices.
Instead, they feel that this
action will just aggravate
the situation and lay the
groundwork for more severe
shortages in months and
years to come.
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