News Update
June 11, 2009

NCBA Urges Congress to Make Changes to On-Farm Inspection Provisions

The National Cattlemen’s Beef Association (NCBA) is urging members of the House Energy and Commerce Committee to address unresolved issues in a proposed food safety bill before moving it forward. The Food Safety and Enhancement Act of 2009, introduced by Reps. John Dingell and Henry Waxman, would pose a myriad of unintended consequences, especially for the meat industry, which is regulated by the U.S. Department of Agriculture (USDA).

“The United States has the safest food supply in the world,” said Kristina Butts, NCBA manager, legislative affairs. “Any changes to that system should be carefully considered to ensure they provide additional benefits without detracting from successful processes.”

Among other things, the bill would authorize the Food and Drug Administration (FDA) to conduct on-farm inspections, undermining USDA’s regulatory authority in ensuring the safety of meat and poultry products. FDA does not have the money, employees, or expertise to properly oversee the livestock and poultry industry.

“We all agree that food safety is extremely important, and beef producers remain committed to producing safe, nutritious and wholesome beef products. But giving additional broad authority for on-farm food safety plans will not improve food safety and will be an economic burden, not only for beef producers but for the FDA,” Butts said. “Using precious FDA resources for this purpose would be duplicative and would undermine the strong process we currently have in place.”

In addition to calling for on-farm FDA inspections, the bill would require FDA to create a tracing system for the complete pedigree of all food, including meat which is not regulated by the FDA. This type of on-farm system would increase production and technology costs for cattle producers and would be overly burdensome for both producers and the FDA.

The legislation would also give FDA the authority to create farm safety standards, including manure use and animal control — which are outside of the expertise of FDA, and already handled by several other regulatory bodies, including the Environmental Protection Agency (EPA), the Department of the Interior, and USDA.

In addition, the bill would grant FDA authority to quarantine a geographical area during a food health emergency. Giving FDA this type of authority would only serve to confuse and disrupt the strong food-emergency response process that has been handled for decades through a collaborative effort between USDA, the Department of Homeland Security, and individual states. NCBA is also concerned that the bill would open up the door for mandatory meat recalls by the FDA. USDA currently operates under a very successful voluntary recall process.

The Food Safety and Enhancement Act of 2009 passed by voice vote out of the House Energy and Commerce Subcommittee on Health earlier today. It was stated during the markup that Committee members will continue to work on areas of concern with the legislation before it goes to the full Committee for markup next week.

— Release provided by NCBA.

South Carolina Processor Recalls Meat on E. coli Concern

A South Carolina processor is recalling about 75 pounds (lb.) of fresh beef trim products that might be contaminated with E. coli. USDA’s Food Safety Inspection Service (FSIS) says Snow Creek Meat Processing in Seneca, S.C., produced the beef on June 2 and it was distributed to retail stores in South Carolina and North Carolina for more processing. FSIS routine sampling discovered the E. coli. No reports of illness have been associated with consumption of the products.

—Release provided by Brownfield Network.

Missouri Listening Session on NAIS the Biggest Yet

In the leading cow-calf state of Missouri, producers have gathered for the ninth in a series of “listening sessions” on USDA’s National Animal Identification System (NAIS) — the largest turnout so far. More than 200 farmers and ranchers were in Jefferson City today, not only from Missouri, but from Kansas, Arkansas, Iowa, Wisconsin and Illinois to speak their minds about the USDA’s NAIS.

Throughout the day, only a few people testified in favor of a mandatory animal ID system — one of them was booed away from the podium. Most who spoke on the record either want NAIS kept voluntary or they don’t want it at all. State Senator Chuck Purgason of Caulfield says Missouri law — Senate Bill 931 — keeps NAIS voluntary and cannot be mandatory without explicit authority from the state legislature. Purgason was one of several state lawmakers, who are also farmers, who testified against mandatory NAIS.

In general, farmers at the hearing agreed, the real problem for food safety begins at the processing door and not with independent farmers. USDA officials with the Animal and Plant Health Inspection Service (APHIS) tell Brownfield the purpose of NAIS is to have meaningful trace-back capabilities in the event of an animal disease outbreak so it can be quickly identified and efforts can be made to keep it from spreading. Jefferson City is one of several locations USDA added to the list for NAIS listening sessions after many producers in the Midwest complained there were not any close to them. The next session is in Rapid City, S.D.

—Release provided by Brownfield Network.

Oil Hits $70, Threatens Recovery

Crude oil prices traded above $71 per barrel on the New York Mercantile Exchange yesterday, reaching a new high for 2009. Analysts said investors were moving into oil futures to protect themselves against the inflation risks posed by a weakening U.S. dollar. Oil has more than doubled in price in the past three months.

Oil prices have also been supported by recent news showing the worst of the severe U.S. recession is likely over. Investors have brushed off data — such as a 9.4% U.S. unemployment rate in May — that suggest crude demand will remain weak. And oil prices have risen despite growing U.S. inventories of crude oil.

“I wouldn’t be surprised if we’re testing $80 in a week or two,” energy analyst Gerard Rigby says.

The U.S. Energy Information Administration (EIA) said this week that crude prices will likely average $67 per barrel in the second half of 2009, about $16 higher than in the first six months of the year. Last month, the EIA’s price-per-barrel forecast for the second half of this year was $55.

The Energy Department also said global consumption of oil, which has fallen by nearly 2 million barrels per day this year, will begin to rebound in 2010 as the economy recovers.

—Release provided by Drovers news staff.

— compiled by Mathew Elliott, assistant editor, Angus Productions Inc.