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FMI BOARD TO GET PLEA ON BEEF PRICE PUSH

WASHINGTON (FNS) -- The Food Marketing Institute here plans to present to its board in May a plea from cattle ranchers that retailers feature beef's low prices more this spring, as a way to help move an increasingly sluggish market."Boxed beef prices are below year-ago levels, and 1998 prices are sharply below 1997 prices for pork and broilers," wrote Chuck Schroeder, chief executive officer of the

WASHINGTON (FNS) -- The Food Marketing Institute here plans to present to its board in May a plea from cattle ranchers that retailers feature beef's low prices more this spring, as a way to help move an increasingly sluggish market.

"Boxed beef prices are below year-ago levels, and 1998 prices are sharply below 1997 prices for pork and broilers," wrote Chuck Schroeder, chief executive officer of the National Cattlemen's Beef Association, in an April 6 letter to the FMI.

"Prices risk moving even lower as record quantities of meat and poultry will be forced through domestic distribution channels throughout April," Schroeder said in the letter. "This market situation is creating frustration among cattle producers regarding the retail price of beef."

In addition to its letter to the FMI, the NCBA's push to reduce the glut of beef includes requesting another bonus beef buy by the U.S. Department of Agriculture, which earlier this month announced that it would purchase an additional $30 million in beef.

Meanwhile, the NCBA's strategy also includes distributing an "issue alert" asking for continued and even increased levels of beef promotions at the nation's top 100 retailers.

At the FMI, a spokeswoman said the trade organization plans to present the NCBA's information to its board members at the board's next meeting in May. She cautioned, however, that the FMI will not make any recommendation on the request, in order to steer clear of any appearance of price fixing.

"We're so concerned with meat prices," the FMI spokeswoman said. "But we've had the Federal Trade Commission look at us in terms of our meat prices." She added, "We did thank the NCBA for bringing this to our attention."

Retail beef prices have been dropping steadily in recent years, according to Annette Clauson, an agricultural economist for the USDA. "We're expecting beef prices to remain at or below last year's prices at least for the first six months of this year," Clauson said.

However, she said, the remaining half of the year could see some improvement, with a price increase predicted to creep as high as 0.7%.

Most of beef's pricing pressure has come from two areas, Clauson said: extremely low export demands and high supplies of competing pork and poultry. The USDA has predicted that total domestic meat production will increase 4.8%.

Meanwhile, in its latest monthly analysis of national average retail beef prices, the NCBA reported that the USDA All Fresh Retail Beef Price was $2.51 per pound in February, compared with $2.53 in January and $2.55 a year ago.

According to the NCBA, more than 50% of all beef sold at the retail level currently moves on featured prices.