Friday, November 19, 2010

GIPSA would affect the poultry industry, too

So asserts the National Chicken Council, which reports:

Proposed new regulations from the U.S. Department of Agriculture will cost the broiler chicken industry more than $1 billion over five years in reduced efficiency, higher costs for feed and housing, and increased administrative expenses, according to a study released today by the National Chicken Council.

And that doesn’t even count the potential costs of litigation, lost export sales, and increased consumer prices, according to the study by FarmEcon LLC, an agricultural economics consulting firm.

“The proposed rule changes are likely to slow the pace of innovation, increase the costs of raising live chickens, and result in costly litigation,” wrote Thomas E. Elam, president of FarmEcon. “Higher costs would put upward pressure on chicken prices, and economic theory strongly suggests that consumers would ultimately bear most of these costs.”

For one thing, GIPSA would complicate chicken companies' ability to pay premiums to their contract growers for efficiency, an official from the NCC told me.

For my story on this, check back to the Capital Press Web site soon.

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