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Beef Buzz News


During Testimony to Senate Ag Committee, Dr. Glynn Tonsor Encouraged Lawmakers Not to Take Action That Could Harm Quality of Cattle Market

Fri, 25 Jun 2021 08:11:37 CDT

During Testimony to Senate Ag Committee, Dr. Glynn Tonsor Encouraged Lawmakers Not to Take Action That Could Harm Quality of Cattle Market During his opening comments before the U.S. Senate Agriculture Committee this week, Dr. Glynn Tonsor, Kansas State University Extension livestock market economist, said it is important not to harm the current high quality beef market.

I encourage the industry to proceed forward in a manner that does not deteriorate economic benefits of the industry’s evolution in recent decades to improve beef quality and align effort with beef demand signals.

The KSU economist noted the U.S. beef cattle industry is the envy of the world.

He said the current high quality of beef is the result of the alternative marketing arrangements that have been in place the past several years.

Lawmakers and others want to mandate higher cash cattle trade levels, but Tonsor said that comes with a risk.

I get concerned when we add rigidity to a system and we get in the way of people being entrepreneurs and doing things a little bit differently, Tonsor said. Any kind of government mandate gives me pause, he added.

When the committee asked Tonsor about the possible impact of such mandates on the global market, he said it could hurt the market.

I would be concerned if we erode incentives to have quality enhancement in the industry at one point would the U.S. lose its current comparative advantage in high quality beef, he said.

Eventually I would think you would lose market share in not only the export market but in domestic food service and retail because you’re competing with other proteins. Tonsor said.

In the future, the KSU economist suggested we should rethink the base we use to figure price discovery.

At some point I think the industry will use a different base, he said. We need to be open to other ways to discover value for a commodity in a different way, over time, we need to be open to that, he said.

Click on the LISTEN BAR below to hear more comments from Dr. Glynn Tonsor during his testimony before the Senate Ag Committee this week.

The Beef buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today’s show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.


   
   

Ron Hays Beef Buzzes With Dr. Glynn Tonsor
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