News Update

News Update
October 22, 2007

USDA Purchases Electronic ID Tags

The U.S. Department of Agriculture (USDA) announced Oct. 19 contracts with three manufacturers to produce 1.5 million radio frequency identification (RFID) ear tags that are compliant with National Animal Identification System (NAIS) standards. The combined cost of the contracts is $1.7 million. The ear tags will be used specifically for USDA state-federal cooperative disease control and eradication efforts, such as bovine tuberculosis (TB) and brucellosis (Bang’s disease) and will be distributed in geographic areas that are determined to be at increased risk for disease outbreak or spread.

The ear tags will use RFID device technology, which will allow producers and animal health officials to electronically identify and store information contained on a tag that is attached to an animal. This will greatly increase the efficiency of an animal disease investigation that involves tracing of exposed and potentially infected animals. The RFID technology also increases the accuracy of information collected from the tags attached to animals of interest.

Three manufacturers are under contract to produce the RFID ear tags: Allflex USA Inc., Dallas-Fort Worth Airport, Texas; Digital Angel Corp., South Saint Paul, Minn.; and Global Animal Management, Summit, N.J. The average cost per unit to USDA for the bulk purchase is approximately $1.13 per tag.

The NAIS consists of three components: premises registration, animal identification and tracing. The premises registration component of the system ensures the availability of a nationwide communications network to assist livestock owners and animal health officials in the event of an animal disease event. More than 420,000 premises nationwide have been registered to date.

— Adapted from a USDA release.

USDA Will Cease Back Verification of Cattle Age

USDA announced Oct. 18 that, effective Jan. 1, 2008, cattle eligible for export verification programs can no longer be back verified for age, Meatingplace.com reported today.

Cattle that have left the ranch of origin must be age-verified by Jan. 1, or they will not be eligible for export verification programs that require age verification, such as Japan.

Going forward, cattle must be age-verified prior to leaving the ranch of origin to qualify for age-verification premiums.

USMEF Optimistic On Increased U.S. Beef Sales to European Union

U.S. Meat Export Federation (USMEF) President Philip Seng told Meatingplace.com today that U.S. beef exports to the European Union (EU) are expected to exceed 6,000 metric tons this year and could reach 12,000 metric tons in 2008, excluding variety meats.

Recently returned from Europe, Seng told Meatingplace he expects exports of beef this year to slightly exceed the current annual EU quota of 11,500 metric tons, even though it would mean paying stiff duties on shipments exceeding the quota. Seng also said he is optimistic the United States and the EU will be able to negotiate an increase to the current quota.

Beef shipped to the EU must come from cattle that have not been implanted with growth hormones. U.S. and EU officials have been working on technical issues, such as how cattle are processed and how carcasses are rinsed, that need to be addressed before quota increases can be considered, Seng said. Skyrocketing meat-import demand in Europe, as well as the weak U.S. dollar against the Euro and a desire to diversify beyond big suppliers such as Brazil will all create opportunities for U.S. beef, he said. Seng cited European Commission projections that EU beef imports from all sources could reach 350,000 metric tons in 2007 and could climb as high as 750,000 metric tons by 2012.

U.S. beef exports to the EU from January through August totaled 4,554 metric tons, up from 2,066 metric tons during the same period last year.

“At a time when the focus is on Asian markets, it would be a mistake not to look at Europe. They’ve got the market and the need and the buying power,” Seng concluded.

— compiled by Linda Robbins, assistant editor, Angus Productions Inc.