Cattlemen's Capitol Concerns: January 22, 2004

Cattlemen's Capitol Concerns

January 22, 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).

Critical Funding Ensured:  U.S. cattle producers will benefit from today’s passage of the long-awaited FY2004 Omnibus Appropriations Bill, which finally approves critical funding needed for food safety and animal health programs, as well as export market development programs. After weeks of contentious debate, the final package passed today by a Senate vote of 65 to 28.  Of utmost importance, following the December 23 announcement of the first-ever case of BSE in the U.S., this bill ensures critical funding for USDA’s food safety, animal health, and export programs such as: Monitoring and Surveillance - $95.9 million; Emergency Management - $9.6 million; Animal Tracking - $1.5 million; FDA’s BSE Prevention - $21 million; Total APHIS budget - $720.28 million; Market Access Program - $125 million; Foreign Market Development – $34.5 million.

Country-of-Origin Labeling: Also contained in the Omnibus package is a provision calling for implementation of mandatory country-of-origin labeling on Sept. 30, 2006, instead of 2004.  Policymakers and food producers alike applaud the move as an opportunity to further work out the confusion surrounding the mandatory COL law, and remedy the law’s flaws.  USDA Secretary Veneman supported the delay and said the program needs more "refinement."  Veneman also commented that COL regulations are not about food safety and animal health, as the labeling is a "targeted retail marketing tool…and it should be treated as such." 

Realities of Mandatory Labeling:  Senator Tom Daschle (D-SD) and the National Farmers Union hosted a media conference on Monday claiming, according to a recent poll, 82 percent of Americans think food should be labeled with country-of-origin. "That’s great, no big news there," says Eric Davis, Idaho cattle producer and our NCBA president. "We all want country of origin labeling."  But the continuing concern over this issue is that many producers do not fully understand the ramifications of the current mandatory law, and a delay is desperately needed so producers aren’t forced to comply with a law they don’t understand. 

NCBA recently commissioned an official study with hundreds of producers in South Dakota, where support for the mandatory law exists. Statistics prove there is a strong desire for changes to the legislation, and a great deal of confusion still exists about the scope of the law. Findings of note are:

(1) A strong majority, 74 percent, support changing the law so that the costs to cattlemen are lower. This can only be accomplished with a delay.

(2) 70 percent of SD cattlemen believe the cost of implementing country of origin labeling will be primarily paid for by cattlemen.

(3) Most SD cattlemen do not know what they need to do to comply with the law – 61 percent said that either didn’t know or weren’t sure.

(4) 64 percent of SD cattlemen falsely believe that beef sold through restaurants or as processed meat would carry a country of origin label. In reality, all products sold in foodservice would be exempt.

Ideal Labeling Program: A coalition of food industry groups have plans to develop an alternative labeling program which will be more beneficial to both producers and consumers than the current mandatory law. NCBA, along with the Food Marketing Institute, National Fisheries Institute, National Grocers Association, National Pork Producers Council, and the United Fresh Fruit and Vegetable Association are enthusiastic about the program, and are excited to bring on other participants – including those who are exempt from the current law.  A more inclusive approach will make the labeling information more meaningful and recognizable for consumers, and a market-driven producer-led approach will be better for cattlemen than the current government-mandated program. 

Mexican Dumping Decision: For the sixth time, the long-awaited decision regarding the current anti-dumping tariffs on U.S. beef imports to Mexico has been delayed again, this time until March 1, 2004. NCBA learned this week that the North American Free Trade Agreement (NAFTA) panel has not made progress on the decision, which was promised by January 20th. Repeated delays in the panel’s decision regarding this tariff has left these duties on beef exports to Mexico in place for more than three years. Over this time, the case has cost U.S. beef producers millions of dollars in lost beef exports to Mexico. For years now, cattle producers have been working towards the resolution of this dispute, asking the U.S. government to intervene, sending letters detailing the anti-dumping case to U.S. Trade Representative Robert Zoellick.

Earlier in 2003, we were encouraged by the fact that, after more than two years, this panel was finally going to issue its long-overdue ruling on June 10, 2003. Several days after this deadline passed, we learned that the decision would be postponed until August 29, 2003, with no explanation given. Just days before this deadline, however, we learned of yet another delay, this time until October 31, 2003 and again, no reasoning for the delay was provided. The decision was delayed again until December 31, 2003, and then again until January 20, 2003 with no reason given but assurances provided that both would be the final deadlines allowed. We continue to ask for a final decision on this case, as soon as possible.

BSE Hearing:  The House Committee on Agriculture held a hearing Wednesday to review the USDA’s response to the finding of a cow with BSE in Washington state last month.  In her testimony, USDA Secretary Ann Veneman commented on the state of domestic markets saying, "Some 90 percent of U.S.-produced beef is consumed domestically, and all indications are that the confidence of the U.S. consumer in the safety of American beef remains very strong. Retailers and food service outlets are reporting virtually no adverse effects on consumer demand as a result of the BSE finding. We believe this is due in part to the quick and aggressive steps the Administration has taken to protect public health."

Concerns about "Downer Cattle" Remain:  During the BSE hearing, House Agriculture Committee Chairman Bob Goodlatte (R-VA) questioned Secretary Veneman about the new FSIS regulations put in place last week, including the rule to ban all non-ambulatory disabled cattle from the human food supply. Goodlatte expressed concerns that if these animals are not permitted to move forward in the food production system, then we will lose the opportunity to monitor, inspect and test these high-risk animals, which is a critical part of our animal health surveillance system.  "Questions still remain about the USDA's downer cattle policy change and how the vital task of animal surveillance will be conducted if the animals do not find their way to government inspectors," Goodlatte said.

"Downer Cattle" Legislation:  In related developments, Congressman Gary Ackerman (D-NY) and Senator Daniel Akaka (D-HI) announced plans on Wednesday to reintroduce H.R. 2519/S. 1298, the Downed Animal Protection Act, which would make the USDA ban on downed animals (animals that cannot rise from a recumbent position or cannot walk) from the food supply permanent.  NCBA will be reviewing the legislation but has serious concerns with a permanent prohibition that hinders these animals from being included into the animal health surveillance system.  USDA is working with veterinarians and the rendering industry to ensure these animals continue in the surveillance program.

Export Markets Update: This week, Poland lifted its ban on U.S. beef and beef products. This is good news, while much of the $3.5 billion beef export market continues to be closed to U.S. product. Reopening these export markets to beef trade remains an absolute top priority for U.S. cattlemen. The USDA is continuing to meet on a technical and diplomatic level with all of our major trading partners. Our foreign trading partners need to base their import decisions on science, and recognize the complete safety and wholesomeness of the beef products we sell.  NCBA continues to conduct ongoing meetings with international cattle groups, industry and government officials on these international trade issues. 

Trade Meetings with Japan:  In related news, USDA sent a large trade delegation to Japan this week to meet on BSE-related trade issues. NCBA requested such a trip and continues to request that USDA makes resumption of trade with our key markets a priority. Historically, Japan represents the top U.S. export market for beef and beef variety meats.

Your Feedback Needed:  Act now! You only have a few days left to participate in NCBA’s Web survey on Mandatory Price Reporting before discussion at the Annual Convention in Phoenix!  The law is set to sunset in October 2004 unless reauthorized.  Producer input is needed to help shape our comments during the reauthorization process.  The survey information obtained will be compiled for discussion at NCBA’s Live Cattle Marketing Committee meeting on Friday, Jan. 30 in Phoenix.  To participate in the survey, go to the following link:  http://hill.beef.org/pricereporting.asp.

Endangered Species:  NCBA and the Public Lands Council are asking Western state executives to work with state fish and wildlife agencies and stress the importance of an effective state Sage Grouse conservation plan. The U.S. Fish and Wildlife Service announced recently that it will make a determination of whether or not to list the bird as endangered – it has already determined that listing the Eastern Sage Grouse is not warranted. This is gives state and federal agencies more time to implement plans to conserve Sage Grouse populations before the agency decides whether to list the entire population as endangered.  Unnecessarily listing the bird could result in significant restrictions imposed on producers’ operations. 

PLC Meeting in South Dakota:  NCBA & PLC Federal Lands Coordinator Stacey Katseanes will be attending the Public Lands Council/South Dakota Stock Growers Association meeting in Belle Fourche, South Dakota on Saturday, Jan. 24. Stacey will give a report on what's happening at the national level, especially with the Bureau of Land Management’s proposed grazing regulations, and Endangered Species issues such as Prairie Dog and Sage Grouse.  

Join Us in Phoenix for Important 2004 Convention: Next week’s edition of Cattlemen’s Capitol Concerns will be published from Phoenix, Arizona…. the site of the 2004 Cattle Industry Convention, January 28-31. NCBA staff, officers, committee members and producer/members are preparing for a big week.  Secretary Veneman will address the cattle industry at our Opening General Session on Thursday morning, January 29. The line-up for Thursday morning also includes in-depth industry forums on BSE, Animal ID, Export Markets, and more. Other highlights include Regional Caucus Meetings and all NCBA Committee meetings. If you would like to make policy happen, have a voice in Washington, and get to the heart of these policy issues, then you should attend the 2004 Cattle Industry Convention. The only way to make things happen, is to get involved! For more information, call (303) 694-0305 or go to www.beef.org.

Next Wednesday, Join Us Via Satellite TV: Cattlemen from around the country can view the live broadcast of a Satellite Town Hall Meeting on Wednesday, Jan. 28, from 5:30 to 7 p.m. Mountain Time (7:30 to 9 p.m. Eastern Time).  The broadcast will originate from the Welcome Reception of the NCBA Trade Show. Max Armstrong, host of U.S. Farm Report, will moderate the 90-minute Satellite Town Hall Meeting that will air live on RFD-TV.  Beef and cattle producers from around the nation can call into a telephone number provided on screen to ask questions of and provide input to beef industry leaders.  McDonald’s Corporation is sponsoring our NCBA portion of the broadcast.

The broadcast will be available on the RFD-TV agricultural channel. That’s Dish Network Channel 9409. Also, Direct TV Channel 379 – Multi-Satellite System Required, MediaCom Cable Systems – Check Local Listings, NCTC Cable Providers – Check Local Listings. A tape of the show will be rebroadcast on the RFD-TV channel on Thursday, Jan. 29 at 7:30 a.m. Eastern Time, on Saturday, Jan. 31 at 4 p.m. Eastern Time, and on Monday, Feb. 2 at 8 p.m. Eastern Time.

Media Contact:

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

This publication is funded by cattle producers and other industry supporters through their voluntary membership contributions to NCBA. To join the tens of thousands of cattle producers from across the U.S. in working to preserve our legacy, contact NCBA Member Services at 1-866-BEEF-USA or Membership@beef.org.

For more information, please visit our web site at hill.beef.org.

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