The USDA has published proposed rules entitled, “Transparency and Poultry Grower Contracting and Tournaments” and “Poultry Grower Ranking Systems: Fairness and Related Concerns”. The proposed rules have been published in the Federal Register with a statutory 60- day period for comments.
The National Chicken Council has requested a delay in responding, given the complexities of the issues and their potential to affect the broiler supply chain. At issue, it is the Administration intent to eliminate or profoundly modify the tournament system, which has served integrators and contractors for many decades.
In addition to the two rules, USDA has noted its intention to introduce rules in accordance with the Packers and Stockyards Act entitled, “Clarification of Scope of the Packers and Stockyards Act” and “Unfair Practices in Violation of the Packers and Stockyards Act”. Deadlines for responding to the publication of the “Transparency and Poultry Grower Contracting and Tournaments” is August 8th. Responses to the “Poultry Grower Ranking Systems: Fairness and Related Concerns” is September 6th.
In their letter to USDA, the NCC noted, “This is not just one rule. Rather, it is three rules and the possibility of more, all of which have been presented as intended to operate together to effect changes to the poultry supply chain. As such, NCC respectfully requested USDA extend the comment period of the Proposed Rule and the advance notice of Proposed Rule Making until at least 180 days after the official publication in the Federal Register”. The NCC letter concluded “Doing so would allow NCC and its members to fully study the impact the Department’s full competition agenda would have on industry efficiency, compliance costs, food availability and inflationary pressures.”