Less than 20 percent of the fed cattle are sold on the spot cash market. However, U.S. Cattlemen’s Association President Justin Tupper said those 20 percent set the base price for the other 80 percent of cattle sold under an AMA or grid pricing system. Tupper, who ranches and owns the St. Onge Livestock Auction, said there is too little competition with just four packers controlling the cattle market. “It’s no different than when the government years ago had to break up Big Oil or they had to break up Ma Bell,” said Tupper. “Those are huge lifts but they’re things we have to think about when it gets so big that there are no other ways to do it.” Tupper was part of a breakout session at the USDA Ag Outlook Forum.
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