News Update

News Update
March 30, 2007

Judge Rules in Favor of Private BSE Testing

A federal judge ruled yesterday the U.S. Department of Agriculture (USDA) must allow meatpackers to test cattle for bovine spongiform encephalopathy (BSE).

USDA previously denied Creekstone Farms Premium Beef’s efforts to test all of its animals for BSE, claiming it unnecessary given the increased potential for false positives. Some in the meat industry also cited fears the move would force an unwanted industry-wide adoption of total BSE testing. However, U.S. District Judge James Robertson ruled yesterday the government does not have the authority to regulate the BSE test, according The Associated Press.

In his statement, Robertson acknowledged the concern for false positive results that could have detrimental effects on the industry; however, he noted, Creekstone has sought to use the same test utilized by USDA.

According to AP, Judge Robertson has put his order on hold until the government can appeal. The ruling will take effect if the government does not appeal by June 1.

Washington Requests Trade Timetable from S. Korea

U.S. officials have requested South Korea provide a written promise providing a timetable for the reintroduction of U.S. beef, according to South Korean news service Hankyoreh.

After months of negotiations, the United States and South Korea are hoping to reach a final free trade agreement (FTA) by March 31. And while beef trade isn’t on the official agenda, U.S. negotiators have pushed the issue alongside other FTA considerations. U.S. officials suggest a beef trade timetable by the South Korean government would better ensure FTA passage by the U.S. Congress, Hankyoreh reports.

Japan Reacts to Beef Requests

In related news, Yoshio Kobayashi, Japan’s vice minister of agriculture, forestry and fisheries, said yesterday that accurate scientific data — not U.S. pressure — would determine the fate of U.S. beef in Japan, according to USAgNet.

Kobayashi’s statement came in response to President Bush’s remarks at the National Cattlemen’s Beef Association (NCBA) Annual Spring Legislative Conference in which he suggested Japan fully open markets to U.S. beef. Japan currently allows only beef from cattle 20 months of age or younger.

Kobayashi said it’s too early to rethink the beef import restrictions because inspections of U.S. meatpacking plants and other probes have yet to be completed, USAgNet reports.

Meanwhile, a Tokyo supermarket March 29 became the first major Japanese outlet to resume sales of U.S. beef, according to Reuters.

Owned 53% by Wal-Mart Stores Inc., the supermarket giant Seiyu Ltd. is expected to offer U.S. beef at 19 other Tokyo locations by Saturday. According to Reuters, U.S. steak was selling for 298 yen per 100 grams ($11.50 per pound) as opposed to Japanese domestic Wagyu steak, which sells for about 1,380-1,780 yen per 100 grams.

— by Crystal Albers, associate editor, Angus Productions Inc.