Cattlemen's Capitol Concerns
May 12, 2005

Cattlemen’s Capitol Concerns (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 the National Cattlemen’s Beef Association (NCBA).

Animal ID RFP: NCBA sent out Requests for Proposal May 9 to companies that have been determined to be able to provide software and meet specifications for a National Animal ID database controlled by private industry. NCBA recognizes the need for an effective national all-species animal identification system and, through the efforts of the NCBA Animal Identification Commission, is seeking proposals for an internet-based solution that would encourage participation in the National Animal Identification program. NCBA insists the system must provide for ease of entry for producers and data service providers, and it must be structured in such a way as to provide data security, confidentiality, secure data entry and secure data access. NCBA’s RFP says the system must also have dynamic ability for updates, modifications, new technology integration, and business practice evolution. NCBA’s Animal ID Commission says they hope to begin implementation of their program on October 1. NCBA members should look for more information in our special "Animal ID" supplement in the May 12 edition of Beef Business Bulletin.

Producers Should Provide Input to USDA on Animal ID: USDA is asking for producer input on Animal ID discussion papers released last week. NCBA urges producers across the country to participate in the discussion on this issue and submit comments on the USDA’s NAIS Draft Strategic Plan and the NAIS Draft Program Standards. Of particular importance is that producers address the questions posed by USDA regarding a private-sector animal ID system. Producers may submit comments by June 6, 2005, by either of the following methods:

- EDOCKET: Go to http://www.epa.gov/feddocket to submit or view public comments, access the index listing of the contents of the official public docket and to access those documents in the public docket that are available electronically. Once you have entered EDOCKET, click on the "View Open APHIS Dockets" link to locate this document.

- Postal Mail/Commercial Delivery: Please send four copies of your comment (an original and three copies) to
Docket No. 05-015-1
Regulatory Analysis and Development
PPD, APHIS, Station 3C71
4700 River Road, Unit 118
Riverdale, MD 20737-1238.
Please state that your comment refers to Docket No. 05-015-1.

Japan: During the past week, there have been important developments in the effort to get U.S. beef back into Japan. On May 6, Japan’s Food Safety Commission (FSC) endorsed an assessment of Japanese scientific experts that testing younger animals for BSE was not necessary. On May 11, a food safety committee of Japan’s majority Liberal Democratic Party (LDP) signed off on this decision, again moving the process forward. This change in Japan’s domestic regulations was necessary before deliberations on resuming beef trade with the U.S. could proceed.

Before heading to Canada, Japanese officials were in California and Nebraska to conduct an on-the-ground review and verify what the U.S. has been doing with regard to SRM removal, feed production and processing regulations and efforts to assure physiological maturity.

While we still don’t have a specific timeframe for resumption of beef trade to Japan, we know government-to-government and behind-the-scenes efforts are ongoing. Japan is in the process of conducting outreach communication meetings to explain the proposal on imports. Japan’s FSC will also be taking up the mutually agreed upon export verification program, as developed by both governments, as the condition under which imports will resume. NCBA will continue to emphasize the critical importance of completing the remaining steps in this process as quickly as possible.

South Korea: A delegation of South Korean government officials and NGOs (non-government organizations) are in Colorado this week for meetings with USDA officials and a group of U.S. animal health and international trade experts to discuss resumption of U.S. beef trade with South Korea. The U.S. delegation includes representatives from USDA’s Foreign Ag Service and Animal and Plant Health Inspection Service, U.S. Meat Export Federation, NCBA and Colorado State University (CSU). In addition to technical discussions, the group is scheduled to tour a feed mill and the CSU diagnostic lab in Fort Morgan, the Swift plant in Greeley, the Smithfield/ContiBeef feedlot in Kersey, the Cargill plant in Fort Morgan and the Aristocrat Angus ranch in Platteville. On May 12, the group is scheduled to fly to Washington for retail tours and meetings at USDA, FDA and CDC.

Oman: The country of Oman has lifted its ban on U.S. beef products according to a USDA announcement May 9. In 2003, the United States exported more than $61,000 worth of beef and beef products to Oman. It is the second country in the Middle East region to reopen its market to U.S. beef. Egypt announced the reopening of its market to U.S. beef in March. NCBA applauded the move and said this is another step toward normalization of trade based on internationally accepted scientific standards for human and animal health.

Export Market Update: In 2003, the United States exported approximately $7.5 billion worth of beef, beef products, cattle and other ruminants and ruminant by-products to 112 countries. After the Dec. 23, 2003 discovery of a BSE-infected cow, $4.8 billion worth of U.S. beef and beef product exports were banned. To date, USDA estimates that $1.9 billion of the $4.8 billion exports lost have been recovered.

Of the 112 countries that bought U.S. beef in 2003:

- 57 countries are currently open. These markets represent 42 percent of the 2003 quantity, and 37 percent of the 2003 value.

- 23 countries have not purchased U.S. beef products, but don’t have a stated ban. These markets represent 0.2 percent of the 2003 quantity and value.

- 32 remain closed. Japan and Korea represent $2.3 billion or 80 percent of the export business that still needs to be recovered.

CAFTA-DR: Lots of breaking news this week related to the Central America-Dominican Republic Free Trade Agreement!
Grassley Considering CAFTA Mock-up: Senate Finance Committee Chairman Chuck Grassley (R-IA) told reporters this week he is considering holding a mock-up of the CAFTA-DR implementing legislation sometime before Congress recesses for Memorial Day.
CAFTA-DR Meetings This Week: The six heads of state from the CAFTA-DR countries (the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua) are in Washington this week for meetings with President Bush and members of Congress. May 9 and 10, the CAFTA-DR Presidents visited Albuquerque, Birmingham, Charlotte, Los Angeles, Memphis, Coral Gables, and the University of California-San Diego speaking about the opportunities the agreement holds for their countries and the U.S. On May 11, the group walked the halls of Congress to urge support for the agreement. In a rose garden event on May 12^th, President Bush said passage of the CAFTA-DR is crucial to America's security and commitment to democratic change in the neighborhood. "The Central America and Dominican Republic Free Trade Agreement presents us with an historic opportunity to advance our common goals in an important part of our neighborhood," Bush said. "By passing this agreement, we would signal that the world's leading trading nation was committed to closer partnership with countries in our own backyard, countries which share our vales."

SD Cattlemen Lend Support to CAFTA: The board of directors of the South Dakota Cattlemen’s Association (SDCA) unanimously passed a resolution April 25 to support the Central America-Dominican Republic Free Trade Agreement. The resolution will remain interim policy until members ratify it during the membership meeting at SDCA’s 2005 Convention Nov. 30-Dec. 1 in Sioux Falls. "I think it’s important for cattlemen across the nation to take a stand for the beef export market," said Ed Blair, chairman of SDCA’s international marketing committee. Blair attended NCBA’s Spring Conference in Washington where he met with a representative from the U.S. Trade Representative’s office. Blair says he learned there that under this administration beef is a priority in all trade agreements. "If CAFTA-DR is not approved it could jeopardize any future trade agreements. We can’t really argue with a free trade agreement that has the potential to increase our exports to that area ten-fold without any significant costs to us."

Join the fight! For localized state information for writing letters-to-the editor or opinion editorials in your state, go to the USDA Foreign Ag Service online at: http://www.fas.usda.gov/info/factsheets/CAFTA/state.htmlplease or visit NCBA’s web site at http://hill.beef.org/cafta, or go to the Office of the U.S. Trade Representative online at www.ustr.gov and click on the CAFTA-DR Briefing Book.

Interior Appropriations & CERCLA/EPCRA Requirements: The House Appropriations Interior Subcommittee approved the Fiscal Year 2006 Interior Department/EPA spending bill on May 10. The bill currently contains language relating to CERCLA/EPCRA (Comprehensive Environmental Response, Compensation and Liability Act/Emergency Planning and Community Right to Know Act) reporting requirements under the Clean Air Act. CERCLA/EPCRA requires that cattle operations monitor and report emissions of ammonia or hydrogen sulfide if the emissions reach a "reportable quantity" of 100 pounds per 24 hour period. The purpose of the monitoring and reporting is to enable EPA to respond to a sudden, substantial release of a "hazardous substance" in an effort to protect public health. Under CERCLA/EPCRA laws, ammonia and hydrogen sulfide are listed as "hazardous substances". Congress, however, included a provision in the law that precludes the EPA from responding to a release of emissions from "naturally occurring substances". Since cattle operations are monitoring and reporting on releases from manure and other "naturally occurring substances," there is confusion over whether or not cattle operations are subject to these requirements. Language passed in the Interior Appropriations bill asks for clarification from EPA.

EQIP Listening Session: NCBA is encouraging producers to submit comments on USDA’s Environmental Quality Incentives Program (EQIP). Written comments will be accepted through June 5. USDA-NRCS will use the information gathered from the sessions to prepare for the 2006 program year. More information is posted at http://www.nrcs.usda.gov/news/index.html#eqiplisteningsession.

Mark Your Calendars for NCBA-PAC Golf Tournament!: Tuesday, July 26 is the date of the NCBA-PAC Golf Tournament at NCBA’s Summer Conference in Denver, Colorado. The tournament will be held at Arrowhead Golf Club in Littleton, CO. The ticket price is $150.00 and includes transportation, green fees, cart rental, range balls, on course refreshments and a chuck wagon buffet. All proceeds will benefit NCBA-PAC/PEF. NCBA-PAC makes the voices of cattle producers heard on Capitol Hill by supporting members of Congress who speak for and protect our policy initiatives.

Congressional Schedule: The Senate is back in Washington this week following a week off for Spring recess.

USDA Surveillance for BSE: USDA continues its enhanced BSE surveillance program which began June 1. To date, 347,491 tests have been conducted with no positive cases reported. APHIS’s goal is to test as many cattle from the high-risk population as possible in a 12- to 18-month period. Testing 268,500 animals would detect BSE at a rate of 1 in 10 million adult cattle at a 99 percent confidence level.

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