USDA’s report on what has caused cattle prices to drop and beef prices to soar is a good start, ranchers say, but they want to know more.

USDA this week outlined market conditions that contributed to the stark disparity between beef and cattle prices following an August 2019 fire at a Tyson packing plant and during the COVID-19 pandemic.

The report is the agency’s first findings in an ongoing investigation into whether packers manipulated prices or participated in other unfair practices that caused beef prices to skyrocket while cattle prices sank.

The report summarizes market conditions, beef and cattle prices and the price spread surrounding the two events. But it did not examine potential violations of the Packers and Stockyards Act.

The report provided good information and data but didn’t attempt to come to conclusions on packer practices, said Jim Magagna, executive vice president of Wyoming Stock Growers Association.

In mid-April, Wyoming Stock Growers and Oregon Cattlemen’s Association joined 21 other groups representing cattle producers in calling for an investigation by the Department of Justice into any fraudulent business practices by packers.

“In terms of what we asked for in the letter to DOJ, there’s certainly more to be done,” he said.

USDA’s report verifies what cattle producers were seeing regarding a disparity in prices, but “I wouldn’t say it fully explains why there was such a wide spread,” he said.

It explains market conditions that enabled the spread, but it doesn’t explain that such a wide spread was inevitable, he said.

The question is whether those market factors or other factors such as concentrated market power made it possible, and the report doesn’t answer that question, he said.

“What we don’t know at this point is did the big four packers take advantage of those market conditions in a manner that was illegal or inappropriate,” he said.

But the report does emphasize the need for structural changes, he said.

It included observations and recommendations on market structure, risk management and price reporting and transparency.

The report is a good first step, said Jon Levy, a fourth-generation cattle rancher in Pendleton, Ore., and chairman of the Oregon Cattlemen’s Association marketing committee.

It characterizes and admits the problems in the industry’s current structure and the need for change and more transparency, he said.

It’s common knowledge that the four big packers control more than 80% of beef processing capacity in the U.S., he said.

“Their ability to control harvest and slaughter volume is a big part of what we have to deal with,” he said.

The report recognized some problems and offered ideas to fix them, he said.

Washington cattle producers appreciate USDA coming forth with information identifying market and price volatility, said Mark Streuli, interim executive vice president for Washington Cattlemen’s Association.

It was good information that might be helpful in reviewing policy items and initiatives, and cattle producers are hopeful it will be beneficial in DOJ’s investigation, he said.

Idaho cattle producers are glad USDA went through the information, said Cameron Mulrony, executive vice president of the Idaho Cattle Association.

“I don’t think anybody would be too surprised at what they found — a lot of supply-and-demand dynamics,” he said.

It’ll be interesting to see what DOJ finds, he said.

But the report did identify opportunities and regulatory changes to make sure cattle producers are getting true price discovery and the potential need for more risk-protection tools, he said.