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South Dakota Stockgrowers applaud plaintiffs of packer suitMembers of the South Dakota Stockgrowers Association appreciate Herman Schumacher, Herreid, S.D., Mike Callicrate, St. Francis, Kan., and Roger Koch, Omaha, Neb., for their pursuit of justice for America's cattle producers. Recently, a jury in Aberdeen agreed with the plaintiffs that three of the nation's four big packers had purchased cattle for less than the fair market value, taking advantage of a glitch in USDA's market calculating system. Experts estimate sellers lost over $40 million during the period of the misreporting of prices. South Dakota Stockgrowers Association's president, Rick Fox, Hermosa, S.D., who attended part of the trial is pleased about the jury's "guilty" verdict. "The jury found Excel, Swift and Tyson all guilty of using USDA's wrong figures, which in fact are numbers that USDA received from the meat packing industry. The jury obviously agreed that the packers knowingly bought cattle for less than true market value, without disclosing that to the sellers. Clearly that's unethical and unacceptable business behavior." According to Fox, the class action lawsuit alleged that Excel, Tyson Fresh Meats (formerly IBP), Swift (formerly ConAgra Beef) and National Beef (formerly Farmland National) purchased cattle for less than actual market value, while USDA was misreporting current market value for choice, select, and no roll boxed beef. The fact that USDA miscalculated prices was not the issue, but rather the fact that the packers knowingly used that wrong data to price, and subsequently buy cattle during that time period. The end result was an artificial lowering of the market, with the packers being able to buy cattle for less than the actual worth. "I appreciate the jury's understanding of the situation, and their actions to remedy the unfairness. An attorney for the defendants told the jury that they have a partnership with cattle producers. The ranchers I know do not tolerate dealings that are knowingly unfair like this case proved. Date: 4/19/06
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