The National Chicken Council commented on a study documenting the negative impact of legislation on contract production proposed by the USDA Grain Inspection, Packers and Stockyards Administration (GIPSA).

The study conducted for the American Meat Institute showed that the disruption and market inefficiencies caused by the proposed GIPSA rule would result in a $14 billion loss for the U.S. economy.

“The poultry and meat industries are dealing with soft demand resulting from a lackluster economy and high unemployment, not to mention higher feed costs due to a shortfall in corn and soybeans. This is a very bad time for the government to impose unnecessary and expensive burdens on poultry and livestock operations,” said Bill Roenigk, senior vice president and chief economist for the National Chicken Council.

Full details of this study, conducted by John Dunham and Associates, are available online.