Informa Study Finds Economic Losses Under GIPSA Rule

Cindy Zimmerman

An Informa Economics study on the economic impact of the proposed GIPSA rules finds it could cost the economy $1.5 billion and nearly 23,000 jobs. The study, which was conducted on behalf of meat industry organizations, was released today in Kansas City by representatives of the National Cattlemen’s Beef Association, National Pork Producers Council, National Turkey Federation and National Meat Association.

In addition to the economic impact, the study found that a majority of industry participants think the rule language is “vague and poorly-defined”; that companies affected by the rule are uncertain about how it will be interpreted and enforced, and that “the provision that removes the burden for litigants to show competitive injury in order to seek damages is by far the largest area of concern. Informa finds that nearly 75% of the expected economic damage arising from this proposed rule can be tied directly to this provision.”

We’ll have more information about this study and the differences between its findings and the recent John Dunham study coming up shortly.

Beef, Livestock, NCBA, Pork, Poultry