President's Message

In Times of Change, Cooperation is Key

NLPA Represents Leaders Working Together to Improve the
Livestock Industry’s Image and Today’s Marketing Environment

by R. Scott Stuart, NLPA President & CEO

The dramatic changes that occurred in the past year have been astounding. The year started off with continued volatility in commodity prices due to the ever-changing ethanol industry. Then throw in the passage of the new Farm Bill and its many repercussions. Add to that a countrywide economic downturn and an election that rippled change throughout the White House and Congress and 2008 was a year that I am not to eager to repeat.

Another factor that made 2008 less than stellar was the amount of bad press our industry received. It started at a small packing plant in California. When the tapes of animal abuse from the Hallmark/Westland surfaced it seemed our entire industry was put on the defensive in front of the general public. Soon Oprah was questioning our management practices. Finally, the California voters took action by passing Proposition 2, the ballot initiative that will ban the use of veal crates, battery cages and sow gestation crates.

Livestock markets specifically were in the news more this year because of the ban on slaughtering horses in the United States. The media took notice of the markets’ role in the sale of horses and the dire effects this ban has created nationwide.

In general, it seems that people in the livestock industry are more than happy to quietly take care of their businesses and avoid the spotlight. This year made it obvious to me that this approach may eventually cost us our freedom to do business as we know it. As leaders in the livestock industry, we need to not just defend our image, but make sure we work harder to let the world know what we are doing right. We need to stay united toward this goal to protect ourselves, our industry and our patrons.

NLPA has worked hard toward this goal for more than 85 years. We continued to rely on the strong base of expertise provided by our board members and allied organizations to find smart, reasonable solutions to the challenges that face our marketing environment today.

One area where NLPA has had strong representation in providing protection for livestock markets is during the development of the National Animal Identification System (NAIS). In April, NLPA along with the Livestock Marketing Association assisted Kansas State University with the American Institute for Beef Economic Research to complete a study entitled “Electronic Identification Systems at Livestock Auction Markets: Adoption Rates, Costs, Opportunities and Perceptions.”

The study produced valuable information for market owners looking for the best way to incorporate the NAIS into their facilities. The detailed cost analysis and the study’s capture of perceptions of the system with market owners is an important benchmark to help market owners proceed with NAIS.

Also in 2008 mandatory country-of-origin labeling (COOL) was implemented. NLPA joined 70 representatives from more than 30 livestock industry organizations and companies to develop universal procedures for implementing requirements of the Country of Origin Labeling (COOL) law, which will took effect on Sept. 30, 2008. The affidavits developed from this effort are a classic example of our members working together. Several NLPA board members volunteered their time provided thoughtful input to help develop a tool that will benefit and protect all of our members and patrons as the COOL law goes into effect.

Our national organization had an interesting year as well. In February, NLPA moved into its new, member-owned offices north of Colorado Springs, Colorado.

This summer, our Board met in Colorado Springs, Colo., to see the investment made in NLPA’s new offices. In addition to the meeting, the NLPA Board and guests toured livestock facilities in Weld County, Colo. Hosted by Producers Livestock Marketing Association (PLMA-N.Salt Lake, Utah), the tours included PLMA’s beef feedlot, PLMA’s auction facility, the Harper Livestock lamb feedlot, and the Johnson Dairy, all near Greeley, Colo.

The NLPA Sheep & Goat Fund was another bright element. NLPA operates under a long-term management agreement with the American Sheep & Goat Center and was able to provide needed credit to entities in the sheep and goat industries during the year. Since the inception of the program, nearly $20 million has been made available to borrowers.

Since 2004, the Beefmobile project has reflected NLPA’s flexibility to coordinate an effort that promoted the livestock industry on a nationwide scale. It also brought several talented individuals into the fold as Beefmobile Wranglers. Unfortunately, the Cattlemen’s Beef Board was not able to fund the project in 2009 due to budget constraints. I am extremely proud of the efforts made by our Board and staff on behalf of the Beefmobile project and am pleased to have it a part of NLPA’s history.

I am always amazed at the abilities afforded to NLPA through its Board Members. This group of forward-thinkers represents the best of what our industry has to offer and I am privileged to work for them. I am also grateful for the loyal, talented and hard-working staff who believes in this organization and all it represents. I look forward to 2009 and its opportunities. I have no doubt that we will find thoughtful, creative solutions to whatever the year may bring.