USCA Takes Issue With Easterday Lawsuit

Easterday Ranches operates a 30,000 head feedlot near Pasco, Washington. In an interview with the Associated Press, owner Cody Easterday estimates that approximately 25 percent of the cattle fed in his feed lot originate from Canada. Easterday argues that just weeks after mandatory country of origin labeling for beef was implemented on September 30, 2008, his operation began receiving a price differential between U.S. and Canadian cattle and that the law may deter packers from buying Canadian-born cattle from his feedlot.

USCA Region 1 Director Lee Engelhardt, Moses Lake, Washington said thousands of feeder cattle have been routinely shipped out of the Pacific Northwest for feeding in Plains states like Nebraska because feedlots like Easterday Ranches can source cheaper cattle north of the border and are not competing to purchase cattle grown in the region.

"Cattle producers in Washington State and the surrounding region have been forced to ship cattle east to receive competitive prices where there are simply more players in the markets," said Engelhardt. "This has driven hundreds, if not thousands, of independent cattle producers in the Pacific Northwest out of business."

"For some time now, Easterday Ranches has not stepped to the plate to buy U.S. cattle grown in this region. More than likely the reason for that is because they can access cheaper cattle in Canada. Until mandatory labeling came along the beef derived from those Canadian cattle was being sold at retail without country of origin identification, and feedlots like Easterday were able to reap the economic benefit. This lawsuit proves that the demand for U.S. beef is driving the markets higher for U.S. cattle. I can’t imagine anyone quibbling with that," said Engelhardt.

"Easterday is suing USDA to prevent the identification of beef because consumers are choosing a U.S. product over an imported product, and they’re complaining to the court that their profit margins are shrinking. The remedy to the problem Easterday Ranches is voicing seems simple to me, and that’s to get into the domestic markets and purchase more U.S. cattle and allow the premiums being paid to trickle down to producers."

USCA President Jon Wooster, San Lucas, California said the lawsuit is unfortunate for all segments of the cattle industry. "Three of the four largest packers in the country recently announced they would comply with country of origin labeling provisions, which put live cattle producers and processors on the same team for a change. Litigation is a costly undertaking and this lawsuit will be divisive for the industry at a time when our economy is suffering and unity is needed. USCA will be monitoring this COOL challenge closely."

Established in March 2007, USCA is committed to concentrating its efforts in Washington, DC to enhance and expand the cattle industry’s voice on Capitol Hill. USCA has a full-time presence in Washington, giving cattle producers across the country a strong influence on policy development. For more information go to www.uscattlemen.org.