Lancaster farming. (Lancaster, Pa., etc.) 1955-current, November 26, 1994, Image 15
Commission Initiates Investigation Of Lamb Imports DENVER, Colo. —At the urging of the American Sheep Industry Association and mem bers of Congress, the U.S. Interna tional Trade Commission has been requested by the office of the U.S. Trade Representative to investigate competitive conditions affecting the U.S. lamb market. That investigation is under way and is expected to report on U.S. and foreign industry profiles and whether there is government assistance to the industries in Aus tralia and New Zealand. If it is determined that there is assis tance, the investigation will look into whether it constitutes a sub sidy under U.S. countervailing duty law. In addition, the investi gation will examine U.S. and for eign markets, U.S. imports and Y(MFkmCreditßankec NobcxiyKrxMsThe Reid Better: Sure, youll find Rum Credit bankers all That means when you talk to a Rum Credit buttoned up, ready to talk short- or long-term loans, loan officer about any kind of ag loan, you won’t have mortgages and sophisticated lines of credit. to waste your time translating to someone who’s book But underneath the shirt and tie, you’ll find smart but farm foolish, theonethingtheotherbanksdon’toffer. Afellowfarmer. What’s more because Rum Credit loan Most Rum Credit loan officers were bom officers understand fanning as well as they understand and raised on farms and got their college degrees finances, they’re not only smarter, they’re fester After from ag schools Nearly all cl them grew up with 4-H all they have the same loan closing authority as many and the Future Rumers of America. local bank presidents And, if that’s not enough every single one of So when you need competitive rales or our loan officers goes ma v\ f f /tfVTMMWA creative options, see your through the toughest ag rAKlfl I V r.l II MO) local Rum Credit banker lending training program ..V , « f .T® Because nobody knows in America. NODOdyITOOWS the field better. the field better. KEYSTONE FARM CREDIT, ACA exports, U.S. market penetration, price comparisons of domestic and imported lamb, and any other information relating to competi tive factors that affect the U.S. lamb industry. The report will focus on the period 1991-1994 and will be sub mitted to the USTR at the earliest possible date, but no later than Aug. 14,1995. In 1994, industry members have been heard discussing the “flood of foreign lamb” as they watched imports rise to near 1993 levels. In 1993 the market saw imported lamb at the highest lev els since 1979, and at the second highest levels in 20 years. This rise represented an annual increase of 46 percent, to bring the market share held by imports to about 11 411 W. Roseville Road Lancaster, PA (717) 291-1855 percent of the total U.S. lamb sup ply. A strong concern raised by these facts is that, despite the industry’s intense promotion of domestic product to U.S. con sumers, import levels continue to rise. So far in 1994, information compiled by ASI and federal agencies shows imports are near levels during the same period in 1993. The primary cause for the increasing market share of imports can be summed-up in two words cheap prices. Spot checks this fall at the wholesale level of U.S. boxed cut prices compared with current import price quotes shows import pricing to be as low as half of domestic prices in some cases. For exam Lancaster Farming, Saturday, November 26, 1994-Al5 ple, U.S. loins averaged $5.50 per pound compared to $2.20 per pound for imported loins. U.S. French racks averaged $8.30 a pound compared to $5.50 for imported French racks. These unfair prices are further supple mented by advertising programs. “Since July of this year, due mostly to a temporary short sup ply, the average price for Ameri can lamb reached historical high levels,” said Cindy Siddov'ay, ASl’s Legislative Council chair. “The increase in supply of foreign lamb, coupled with aggressive pricing, is cause for alarm and great concern.” The concern is twofold. When foreign lamb prices at the retail level are consistently $1 to 50 cents a pound lower than the domestic product, it makes it diffi cult for domestic producers to maintain their market share. In addition, it forces U.S. growers to lower their prices to below break even levels for American growers, even though the U.S. product is clearly of superior quality. “It's obvious that the pricing practices are a huge concern to domestic growers,’’ said Sid doway. “The ITC study to be completed in 1995 will help set the stage for actions to address the lamb import problem either through legislation or action by the administration." The U.S. International Trade Commission has scheduled a for mal public hearing in connection with the investigation for Feb. 23, 1995 in Washington, D.C. 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