Cattlemen's Capitol Concerns: April 8, 2004

The CCC is a weekly report from Washington D.C. giving an up-to-date summary of top policy initiatives concerning the cattle industry; direct from National Cattlemen’s Beef Association (NCBA).

Mexican Trade Update:  In a huge boost for cattle producers across the country, we are expecting an announcement very soon about the re-opening of borders for U.S. beef variety meat exports to Mexico. Negotiations between U.S. and Mexican officials are expected to result in an announcement next week. This is a critical component of our overall beef export market, as Mexico is our largest market for beef variety meats.  In 2003, the U.S. exported 315 million pounds of variety meats (43 percent of our total beef trade with Mexico) and accounted for $271 million in value. The agreement includes all variety meats (hearts, livers, tongues, etc.) except tripe.  It is unclear why tripe is being exempted at this time, however, when Canada reestablished variety meat trade with Mexico, tripe was inadvertently left out. Hopefully the issue with tripe will be resolved in the near future.

Japanese Trade Update: With U.S. beef export markets to Japan still closed, Vice President Dick Cheney will visit Japan, China and South Korea April 9-16 to discuss top trade issues, regional issues, and efforts to combat terrorism. The Vice President has been briefed on our top beef trade concerns, and will be meeting with key Japanese government officials in Tokyo April 10-13.  Correspondences from key Senators were sent to the Vice President’s office asking him to make resumption of beef trade with Japan a priority discussion item during his trip. NCBA continues to make the re-opening of this prime market a top priority in D.C.

Canadian Trade Update:  NCBA submitted its comments this Wednesday on USDA’s Proposed Rule on BSE and the establishment of Minimal Risk Regions and Importation of Live Cattle.  The rule would include Canada in a category of regions that present a minimal risk for BSE and could pave the way for the Canada to export certain categories of cattle into the U.S. NCBA comments reflect several key concerns of U.S. cattlemen:  1) possible disruption of the domestic cattle market caused by large movements of cattle from Canada; and 2) the age of Canadian cattle allowed to enter and the identification and restrictions on Canadian heifers. NCBA is demanding that re-opening the border is not an option until U.S. cattlemen’s concerns are addressed. USDA will now review the comments, and it will take more time before a final rule is published. 

FSIS Comments Deadline Extended:  The USDA Food Safety Inspection Service (FSIS) announced April 7 that it will extend the comment period for their interim final rules on specified risk material (SRM) removal, prohibition of non-ambulatory cattle, changes to the Advanced Meat Recovery regulations, and ban on air injection stunning.  In addition, FSIS announced the availability of an economic impact assessment for the rules on SRM and non-ambulatory cattle.  Comments will be due on May 7.  NCBA will review these economic impact assessments and provide comments to FSIS.

Conservation Programs Update: NCBA and other livestock groups met with Bruce Knight, Chief of the Natural Resources Conservation Service (NRCS) this week to discuss the implementation, funding levels, and eligibility concerns with EQIP and other conservation programs included in the 2002 Farm Bill. Currently, some applicants are having trouble qualifying for the funds, and NCBA and other livestock groups are asking Chief Knight for a formal, concrete list of reasons for exclusion from funding.

Secretary Veneman at National Press Club: NCBA participated in a press event at the National Press Club this Tuesday, where USDA Secretary Ann Veneman spoke to an audience of Washington D.C. media and industry representatives. Veneman spoke on the state of U.S. agriculture, and highlighted many cattle and beef industry issues including reopening of export markets, harmonization of trade standards, downer cattle issues, testing requirements, and our food safety and inspection systems.  With testing policies being heavily debated in the media, Secretary Veneman stated there wss no scientific basis for testing every animal for BSE.  She noted that USDA is insisting on science-based decision making with our trading partners.

Nebraska Producer on National Panel:  The National Institute for Animal Agriculture is hosting their annual meeting in Salt Lake City this week, and held a day-long forum on "BSE in North America:  A New Era" on Tuesday.  Scheduled speakers include Ron DeHaven, USDA Chief Veterinary Officer, and Les Crawford, FDA Acting Administrator. Nebraska Cattle Producer and Nebraska Cattlemen’s Association President Allen Bright represented NCBA in a panel discussion with other industry groups on BSE Safeguards in the U.S.

Trade Report on Morocco:  NCBA's cattle producer members of the U.S. trade advisory committees are completing reports due to the President on trade with Morocco. This is a standard step in the advisory process. NCBA is working on the final touches of this report, which will be sent to the Bush Administration and Congress.

German Officials Visit NCBA:  Alexander Müller, State Secretary of the German Federal Ministry for Consumer Protection, Food and Agriculture visited our NCBA Washington D.C. offices on Wednesday to discuss our response to the BSE-case and its impacts. Mr. Müller was in Washington attending a conference of the International Forum for Transmissible Spongiform Encephalopathy (TSE) and Food Safety in Washington D.C. April 5 and 6.

NCBA in College Station, TX:  NCBA's Bryan Dierlam is a guest speaker at Texas A&M's Second Annual Agriculture Leadership Forum, with the College of Agriculture in College Station, Texas this week.  This is their second Annual Agriculture Leadership Forum. Bryan will discuss top current issues affecting the beef industry, and the dynamics of working for the top agricultural trade association in Washington, D.C.

Congressional Schedule:  The House is out of session for the next two weeks for Spring Recess.  The Senate will begin its Spring recess next week.  Both houses of Congress are scheduled to reconvene April 19.

Media Contact: Tanya Augustson or Karen Batra at 202-347-0228 taugustson@beef.org or kbatra@beef.org

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