Wednesday, March 2, 2022
A4
OPINION
OTHER VIEWS
$1B bet on
more meat
processing
capacity
P
oliticians have a way of oversimpli-
fying complex problems. Often, their
answer to a problem is to add money,
and lots of it.
If only it was that simple.
During the past two years — the Era
of COVID — the main answer to almost
every problem that arose was to add
money. Trillions of dollars were injected
into the economy to keep the doors open at
certain businesses. Those were the success
stories; many other businesses closed per-
manently. Millions of people were thrown
out of work for extended periods and
received money, sometimes more than they
were making on the job.
Most recently, the Biden administration,
with Agriculture Secretary Tom Vilsack on
board, has decided to “solve” the complex
problem of low cattle prices and high meat
prices by spending $1 billion to subsidize
the construction or expansion of small and
medium-sized meat processing plants.
If only it was that simple.
First the facts. About 85% of the beef
processing capacity is owned by four large
companies — Tyson, Cargill, JBS and
National Beef. During the COVID pan-
demic, they struggled to keep up with
demand as employees fell ill. Until they fig-
ured out how best to keep employees safe
and healthy the processors could not keep
up with consumer demand, and retail beef
prices jumped.
At the same time, because the processors
were struggling just to keep their plants in
operation, they didn’t need to buy as much
cattle as usual. Those prices dropped — a
body blow to ranchers and feedlot own-
ers who bought cattle anticipating a certain
price range but received far less.
It was a worst-case scenario for cattle
producers.
Even before COVID, cattle produc-
ers worried out loud that processors held
too much sway over the markets. They
called for more openness in price discovery
through public auctions so everyone could
see what the prices were and who was pay-
ing them.
USDA under Vilsack has opened some
of those doors, even promising to work
with the Department of Justice to look for
antitrust violations.
We have to wonder why the USDA and
DOJ weren’t doing that all along. One of
their jobs is making sure all U.S. commod-
ity markets are open and competitive.
We believe in competition. It is the life-
blood of capitalism. But we worry about
the unintended consequences of injecting
$1 billion into the beef processing industry.
Will it go to the processing plants that
are already under construction? Will it go to
plants that are struggling? Will it convince
reticent local politicians that new process-
ing plants are good for their communities?
And, ultimately, will it increase cattle
prices and decrease beef prices?
These are questions without answers,
and certainly without any guarantees
attached.
All we know is it will be a long time
before new plants — or additions to small
and medium plants — go online.
And when that happens, we can only
hope the supply of labor will be adequate.
Getting and keeping good employees has
been one of the largest challenges facing
processors of all sizes.
We hope Vilsack and President Biden
have thought this through. The new worst-
case scenario that we don’t want to see is to
be five years down the road and still have
low cattle prices and high beef prices even
after spending $1 billion.
— Capital Press
LETTERS to the EDITOR
Reporting needed
on modernized dam
Certainly of late, your in-depth reporting
of local happenings has been insightful and
thorough. The cattle abandonment story
and the efforts to recover them put readers
on the site, if not literally, at least mentally.
An issue that I would like to see
re ported on with equal intensity and with
regular updates is one that will affect all of
us currently living in this gorgeous valley
and those who will be privileged to over
the next century, anyway. Though seem-
ingly absent from in-depth reporting and
receiving occasional mention, the design
of and implementation of the modernized
dam on Wallowa Lake’s north end seems
a lasting edifice that will shape agriculture
and fish populations and, thusly, all of our
lives.
Please consider an in-depth look at and
a monthly update on this dam’s progress
and thank you.
David Hayslip
Enterprise
Gail Swart will
truly be missed
It has been good to read in the Chief-
tain about one of Wallowa County’s most
distinguished citizens — Gail Swart. Here
CONTACT your REPRESENTATIVES
U.S. PRESIDENT
Joe Biden
The White House
1600 Pennsylvania Ave. NW
Washington, DC 20500
Comments: 202-456-1111
U.S. SENATORS
Ron Wyden
221 Dirksen Senate Office Bldg.
Washington, DC 20510
202-224-5244
La Grande office: 541-962-7691
Bobby Levy, District 58
900 Court St. NE, H-376
Salem, OR 97301
503-986-1458
Rep.BobbyLevy@state.or.us
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editorial board. Other columns, letters and cartoons on this page express the opinions
of the authors and not necessarily that of the Wallowa County Chieftain.
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Office: 209 NW First St., Enterprise, Ore.
Phone: 541-398-5502 • Fax: 541-426-3921
Contents copyright © 2022. All rights reserved.
Reproduction without permission is prohibited.
• • •
Bill Hansell, District 29
900 Court St. NE, S-423
Salem, OR 97301
503-986-1729
Sen.BillHansell@state.or.us
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SENATOR
Greg Smith, District 57
900 Court St. NE, H-482
Salem, OR 97301
503-986-1457
Rep.GregSmith@state.or.us
Member Oregon Newspaper Publishers Association
USPS No. 665-100
Cliff Bentz
1239 Longworth House Office Building
Washington, DC 20515
202-225-6730
Medford office: 541-776-4646
REPRESENTATIVES
GOVERNOR
Kate Brown
160 State Capitol
900 Court St.
Salem, OR 97301-4047
503-378-4582
U.S. REPRESENTATIVE
Jeff Merkley
313 Hart Senate Office Building
Washington, DC 20510
202-224-3753
Pendleton office: 541-278-1129
Wallowa County’s Newspaper Since 1884
VOLUME 134
is another accolade of her unselfish shar-
ing of her musical talent. Each week —
rain or shine, spring, summer, fall or win-
ter, Gail would drive from her home at
Wallowa Lake (at her own expense) to
play the piano for the residents at Alpine
House Assisted Living. She would ask
the residents if anyone had a favorite or
request and she played them all using no
written music. She played the oldies, reli-
gious, classical, popular, boogie woo-
gie, and jazz. She entertained and blessed
many senior citizens over the years who
looked forward to her weekly visits. She
is and will be truly missed.
Residents of Alpine House
Joseph
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