Cattlemen's Capitol Concerns: August 21, 2003

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) D.C. headquarters. Please feel free to reprint in full.

Notice: In observance of the Labor Day Holiday and Congressional Recess, the next CCC will be published September 4, 2003.

Australian Trade:
According to officials from the Australian Embassy, the long-standing "30-day" waiting period requirement for U.S. beef exports to Australia has officially been lifted. NCBA is very pleased with this decision and has been working towards the elimination of this non-tariff trade barrier for a long time. Historically, Australia has maintained a 30-day aging import requirement for U.S. beef. This sanitary barrier has contributed to the difficulty of the U.S. to ship what little beef it does into Australia, which was 6.4 metric tons in January-June 2003, and 82.7 metric tons in 2002. During the U.S.–Australia FTA negotiations, NCBA insisted that the Administration resolve the remaining SPS issues with regards to U.S. beef exports to Australia. The office of the U.S. Trade Representative, USDA-Foreign Agriculture Service and USDA-Animal and Plant Health Inspection Service have worked together to make this change a reality, and we are very pleased with its prompt resolution.

Canadian Trade:
NCBA has received a number of questions regarding the recent decision to develop a permitting process to allow boneless boxed beef from Canada to be exported to the United States. We would like to reiterate that USDA's decision is science-based. The decision to reestablish trade with Canada in this manner is consistent with the guidelines established by the Office of International Epizootics (OIE) for trading with countries such as Canada that have had all the necessary BSE prevention systems in place and enforced, and that have conducted the type of comprehensive investigation as Canada to illustrate this is an isolated case. OIE is an organization that endorses countries making science- and risk-based decisions as the USDA has done in this case.

Relative to consumer confidence, NCBA survey data indicate consumers have a very high level of confidence in the safety of U.S. beef, both before and after the Canadian BSE case. Therefore, we do not expect the reestablishment of trade on a limited, science-based basis to effect consumer confidence. We will closely monitor this situation and act if need be to address any challenges to the safety of beef, both foreign and domestic.

Country of Origin Labeling:
NCBA is submitting comments this week to the Commodity Futures Trading Commission on the proposed amendments to the Chicago Mercantile Exchange's live cattle futures contract regarding country of origin labeling. The proposals will require "all cattle delivered on the futures contract must be born and raised exclusively in the United States," and the seller must provide supporting documentation that conforms to industry standards at the time of delivery.

This CME proposal demonstrates that the mandatory labeling law could change, or even restructure, beef marketing and production. NCBA has long recognized that mandatory labeling will cause disruptive changes. For this reason, NCBA supports an alternative approach to country of origin labeling that will avoid wholesale changes that are caused by mandatory labeling. Should the futures contract become the dumping ground for cattle whose beef is non-merchantable at the retail level, the price discovery and risk management purpose of the contract will be thwarted.

Obesity Issues:
NCBA participated in a media workshop reviewing current obesity issues facing our nation this week, which included a panel of health and nutrition experts, food industry staff, and government officials. The workshop was coordinated by National Pork Producers Council and the Washington-based Meat and Poultry Industry Media Relations Committee. Panelists included: Maureen Storey, Ph.D., Center for Food and Nutrition Policy, Virginia Tech; Barbara Determan, Pork Producer, Early, Iowa; Robert Earl, R.D., MPH, Senior Director of Nutrition Policy, National Food Processors Association; David Baer, Ph.D., Diet and Human Performance Laboratory, USDA; Mark Mansour, Attorney, Keller and Heckman.

Foot-and-Mouth Disease (FMD):
NCBA, as part of the agriculture industry’s FMD Communicators Group participated in a briefing at USDA’s Animal Plant Health Inspection Service (APHIS) Emergency Operating Center in Riverdale, Maryland today. The group (communications representatives from the beef, pork and dairy industry groups) met with members of APHIS Veterinary Services emergency programs staff and APHIS public affairs staff. The participants shared information about communications plans and toured the new Emergency Operations Center.

Animal Health Emergencies:
NCBA, as part of the Animal Agriculture Coalition, filed a request to the Animal and Plant Health Inspection Service (APHIS) asking for an extension to the comment period for the proposed rule on cost-sharing for animal and plant health emergency programs. This proposed rule will change the percentage of funds the federal government is responsible for in certain animal or plant health emergencies. The comment period closes on September 8. The coalition asked for the deadline to be extended for 60 days to allow the industry more time to examine all facets of the proposed rule and the intended or unintended consequences. NCBA strongly believes the federal government should enhance animal health programs, not diminish them.

Animal Health Status:
USDA’s Animal and Plant Health Inspection Service (APHIS) is amending the regulations that set procedures for recognizing the animal health status of regions. Under the rule, regions that have been granted certain animal health status under USDA regulations will be specifically required to provide information, or allow APHIS to access information, to confirm the regions’ status when it is requested. NCBA has previously commented on this rule. The amended regulations require, at the discretion of the Administrator, that regions submit, or allow the collection of, information APHIS believes is necessary to ensure that the animal health status of the region has been maintained.

FDA Public Health Strategy:
The Food and Drug Administration (FDA) has announced a plan that outlines how it is taking new steps to protect and advance public health for America. "Protecting and Advancing America’s Health: A Strategic Action Plan for the 21st Century," The plan outlines five priority goals for the future. These are: (1) Efficient, Science-Based Risk Management, (2) Patient and Consumer Safety, (3) Better Informed Consumers, (4) Counterterrorism, and (5) A Strong FDA. For more information, go to http://www.fda.gov/oc/mcclellan/strategic.html

Sustainable Rangelands Roundtable:
Stacey Katseanes, PLC & NCBA Federal Lands Issue Coordinator, will attend meetings this week of the Sustainable Rangelands Roundtable (SRR) in Portland, Oregon. The SRR, a coalition group of resource professionals, government policy makers, academics, researchers, conservation and environmental groups, and industry representatives are working to develop a set of measures of the environmental, economic and social components of rangeland sustainability that would apply to all U.S. rangelands. The SRR last met in Wyoming in June. A top priority for NCBA and PLC is site-specific short- and long-term rangeland monitoring.

California Visit:
NCBA VP of Government Affairs, Chandler Keys, and NCBA PAC Director Tandy Harrison were in Oakdale, California last week, meeting with individual California cattlemen to discuss current issues affecting the cattle industry.

Congressional Schedule:
Both the House of Representatives and the Senate are out for summer recess. They are due back following the Labor Day holiday.

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