Capital Update – For the Week Ending December 15, 2023
In this week’s National Pork Producers Council (NPPC) Friday recap: NPPC hosts Pork Action Group meeting for top producers; and NPPC, ag groups unite on proposals affecting derivates market. Take a deeper dive below.
NPPC Hosts Pork Action Group Meeting for Top Producers
What happened: The country’s top pork producers convened at NPPC’s annual Pork Action Group (PAG) meeting in Marco Island, FL, held Dec. 13-15. The event provided a platform for insightful discussions on critical issues within the industry, featuring expert insights on retailer and foodservice dynamics, as well as the continuing challenges facing the industry throughout the value chain.
Distinguished speakers included the Animal Ag Alliance President and CEO Hannah Thompson-Weeman, C&S Wholesale Grocers Inc. Corporate Manager of Perishable Meat Purchasing Jay Pooler, and Bryan Valladares, director of sustainability for Darden Restaurant Group, one of the world’s largest full-service restaurant companies, which owns Ruth’s Chris Steak House, Olive Garden, LongHorn Steakhouse, and many others.
NPPC Vice President of International Affairs Maria C. Zieba moderated a panel on international trade with updates from former deputy U.S. Trade Representative Ambassador Rufus Yerxa, who now is senior adviser with McLarty Associates; and former Assistant U.S. Trade Representative of Agricultural Affairs Sharon Bomer, principal and founder of AgTrade Strategies. Brett Stuart, Founder and President of Global AgriTrends spoke about trends and issues in global red meat trade and policy.
Former Speaker of the U.S. House of Representatives John Boehner (R-OH) and retired U.S. Navy four-star admiral William McRaven, a Navy SEAL renowned for his inspirational commencement speech about making your bed — “If you can’t do the little things right, you will never do the big things right” — delivered captivating keynote addresses.
Why it matters: The annual Pork Action Group conference brings together the diverse components of the pork industry value chain. This forum provides a unique platform for industry leaders to engage with nationally renowned experts on the pressing issues and challenges confronting the U.S. pork industry, creating an environment where collective wisdom can drive impactful solutions.
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NPPC President Scott Hays (left) interviews former Speaker of the U.S. House of Representatives John Boehner, R-OH, (right).
NPPC President-elect Lori Stevermer (right) introduces Global AgriTrends Founder and President Brett Stuart (left).
NPPC President Scott Hays (right) introduces retired U.S. Navy four-star admiral and Navy SEAL William McRaven (left).
PAG participants listen to NPPC President Scott Hays.
NPPC, Ag Groups Unite on Proposals Affecting Derivates Market
What happened: The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation are seeking public comment on the U.S. Federal Reserve GSIB Surcharge Proposal and the U.S. Basel III Endgame Proposal. These proposals have the potential to negatively affect the derivatives market critical for hedging price risks in the agricultural supply chain.
NPPC joined other agricultural associations, including the American Farm Bureau Federation and the National Cattlemen’s Beef Association, in a letter urging the Federal Reserve to reconsider these proposals.
NPPC’s take: Producers use derivatives, such as futures and options, to mitigate price risks. The proposals would make central clearing, which is critical to the derivatives market, more expensive and could harm downstream agricultural end-users.
NPPC, echoing the concerns of other agricultural associations, urged modifications to the proposals that do not disincentivize banks from providing this important service to customers, as well as safeguard the interests of agricultural end-users, especially family farms.