FOR IMMEDIATE RELEASE: April 18, 1996
CONTACT: Dana Hagerty 202/225-2165
WASHINGTON, DC -- Congressman Collin C. Peterson (DFL-7th District) announced today that the House Livestock, Dairy and Poultry Subcommittee will hold two days of oversight hearings on May 15 - 16, 1996, on the trading practices and procedures of the National Cheese Exchange (NCE).
“Dairy farmers in the 7th District are concerned about trading practices and procedures of the NCE. A recent three-year joint study by the Wisconsin Department of Agriculture, Trade and Consumer Protection and the University of Wisconsin College of Agricultural and Life Sciences seems to confirm their fears, and suggests that there is potential for price manipulation on the Exchange by major traders.” Peterson said.
The issues the Subcommittee will be looking into include:
how the NCE can improve participation and competition on the Exchange;
the extent to which electronic trading could correct the problems isolated by the joint study; what possible alternatives to the NCE could be created to provide a base/benchmark price for bulk transfers of cheese;
whether any of these alternatives are preferable to the NCE;
how to eliminate the potential for price manipulation and trading against interest when setting a base price for cheese;
whether there is need for new or enhanced Federal regulation of the NCE by the U.S. Department of Agriculture or the Commodity Futures Trading Commission;
and the extent to which commercial cheese market information can be assimilated and reported to the industry in a more accurate and timely manner.
“This is an important issue and these oversight hearings are long overdue,” Peterson said. “I believe we have scheduled these hearings early enough to be able to move any necessary corrective legislation through this year.”