Cattlemen's Capitol Concerns: November 11, 2004

Cattlemen's Capitol Concerns
November 11, 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 the National Cattlemen’s Beef Association (NCBA).

Agriculture Economy Forecasts:  The U.S. Department of Agriculture (USDA) was abuzz this week with talk of the agriculture income outlook. Agriculture Secretary Ann Veneman says "these continue to be historic times for American agriculture. We saw several new records established in 2003 including net cash farm income." And, according to forecasts released this week by USDA’s Economic Research Service, Veneman says, "Net cash farm income for calendar year 2004 now is forecast at an astonishing $77.5 billion. This is an increase of about $9 billion over last year's record and far above the previous record of $60.9 billion that was set in 1997." This is even stronger than anticipated.

Despite the Dec. 23 2003 case of BSE and export market issues for beef, livestock industries actually saw an increase of $16 billion - the largest majority of the total $22 billion increase - compared to a $6 billion increase for crops. According to the USDA, factors which account for this are the growing economy, strong demand both at home and abroad particularly for livestock products, record exports along with our focus on opening new markets for U.S. agricultural products while maintaining existing ones, and the President's tax cuts.

Export Markets Update: Since U.S. beef export market closures due to one Canadian cow in Washington State with BSE almost 11 months ago, the U.S. industry has recovered $1.7 billion of the trade in still-closed markets. 64 percent of our export markets were closed, and now this is down to 41 percent. As government-to-government negotiations continue with various nations, the NCBA will continue to urge the speedy reopening of the largest export markets for U.S. beef, a top priority for U.S. cattle producers.

While some might presume there has been little post-election activity taking place to reopen export market for U.S. beef, progress is being made on key elements needed to reestablish trade in several markets. As of this time, there is no indication of any slippage regarding the potential timeline for reestablishing trade that USDA officials have previously indicated. NCBA has been involved with endless meetings in both the U.S. and abroad, regarding the export market situation. We will continue to work toward full, science-based normalization of trade, especially in our valuable Asian markets, because all U.S. beef is safe from BSE.

-Japan Export Market: While Japan works through its domestic regulatory process which is expected to take several more weeks, the U.S. government and industry are aggressively working to finalize research on maturity at time of slaughter in U.S. cattle. Under Secretary for Farm and Foreign Agricultural Services J.B. Penn spoke this week regarding his recent trip to Asia, where he made the rounds working for the re-opening of key markets. "Three weeks ago we began a trip to visit the key markets across Asia, and as has been widely reported, we spent a fair amount of our time in Japan," says Penn. "We will develop an interim trade program that involves shipping only beef and products from animals 20 months of age and under. We will then, jointly with our Japanese counterparts and with input from the World Organization for Animal Health, review this arrangement in July 2005."

As expected, U.S. beef products will not start to move into the Japanese market just yet. Several steps are involved, including the USDA working with Japanese experts to complete a study, which is currently underway, to determine an animal's age using our carcass grading system.

-Taiwan Export Market: According to the USDA, the Taiwanese have completed an internal review process and are close to resuming trade with the U.S. A technical team from Taiwan is coming to the U.S. this weekend for a one-week visit where they will tour testing labs, feedlots, and production facilities, and report results back home before a final decision is made on the re-opening of the border. The team will spend time in Washington visiting with our Animal and Plant Health Inspection Service and Food Safety Inspection Service officials regarding the enhanced surveillance program. NCBA believes this should be the final step in resuming trade with Taiwan.

-Korean Export Market:  USDA has also been in Korea for extensive technical discussions various times over the past several months urging for the re-opening of the border. It appears Korea is waiting to see action in Japan, and will this lead to a decision to resume trade, but so far there is no definitive time-frame.

-Chinese Export Market: This week, USDA says they now have some indications that some movement may be imminent on the low-risk products going into China. According to Penn, "we agreed to continue our technical discussion to help them become better informed about BSE and the measures we have put in place to ensure safe trade."

-Other Export Markets: The USDA also has been holding discussions with officials in both Hong Kong, Macao, and other export markets. It is expected that an Egyptian technical team will be coming to the U.S. very soon for consultations. NCBA believes this visit could be the final step in resuming trade with Egypt.

Japan BEV Program:  Discussions continue on the Beef Export Verification program. For full details on this, interested parties can go to the USDA's Agriculture Marketing Service (AMS) website. The recent presentation from AMS on the BEV program, Quality System Assessment (QSA) Program Requirements, Livestock and Seed Program, can now be found online at: http://www.ams.usda.gov/lsg/arc/BEVJapan.pps The presentation reviews the joint statement between Japan and the U.S., reviews the known Specified Product Requirements, the QSA program, Implementation Plan, explains who can apply, and details the conditions and modalities the two countries must meet in order to resume two-way trade in beef.

Canadian Border Re-Opening: NCBA continues to urge for a science-based reopening of all borders, including Canada. This week, Secretary Veneman gave an update on the Canadian rule, stating "I've said many times before, we continue to go through the internal process for the rule. As I have indicated before, we had anticipated that we could get this rule done much more quickly. But there were several intervening factors." She noted that the rule was more than 100 pages long, and is taking a great deal of time to for the staff to review.

European Union Hormone Ban: This week, the European Union (EU) announced they have filed a World Trade Organization (WTO) case against the U.S. and Canada claiming that we should remove retaliation measures, because the EU is in compliance with the WTO’s ruling on the beef hormone case.  You may remember that last October, the EU issued a press release claiming compliance with the WTO ruling, which the U.S. rejected. Over the last year, the EU has continued to receive pressure from it’s domestic interests who must pay the tariffs for the $116.8 million in retaliation collected by the U.S.  NCBA will continue to assert that the EU has presented no new science in this case, and so retaliation should be continued until they fully comply with the WTO ruling.

The EU ban on U.S. hormone-treated beef was already found to be an illegal trade barrier by the WTO, violating international trade rules, and not at all based on sound science. The new directive is just another wrong move after dozens of years of delay tactics and two decades of lost markets for U.S. cattlemen. Repeated scientific studies, including those done by the EU, show that the banned growth promotants pose no threat to human or animal health when used according to approved veterinary procedures. The WTO Appellate Body reiterated this when they upheld sound science rather than using unscientific factors as the basis for international trade rules and ruled in favor of the United States, forcing the EU to drop the ban or prove it is scientifically valid. The EU has failed to look at the science in this matter and refused to implement the recommendations and rulings of the WTO.

This latest news regarding this ban is just another attempt by the EU to stir up old, non-scientific claims which have no validity. U.S. cattlemen are proud of their outstanding product, raising and producing the safest beef in the world. NCBA will assist in the pursuit of any legal action against the EU that may benefit the U.S. beef industry in its long battle to gain relief from the EU hormone ban on beef. The EU ban is pure protectionism, and U.S. cattlemen will continue to fight the EU on this matter.

Prairie Dogs:  The U.S. Fish & Wildlife Service announced Nov. 9 that, upon initial review, a petition to list the White-tailed Prairie Dog on the federal endangered species list failed to provide substantial evidence to support the requested action.  This is encouraging news for public ranchers across Colorado, Utah, Wyoming, and Montana as an estimated 55 percent of the existing habitat exists on property owned by the Bureau of Land Management (BLM).  A coalition of eight environmental groups filed the petition to review the status of the White-tailed Prairie Dog in the summer of 2002.  A 90-day finding by the U.S. Fish & Wildlife Service revealed that no further review was necessary to make the determination that the species should not be listed as threatened or endangered, preventing additional restrictions and regulations on public land ranching throughout the rodent’s habitat.

Animal ID:  USDA’s Animal and Plant Health Inspection Service announced Nov. 10 that it is amending its regulations to recognize additional numbering systems for the identification of animals.  Many producers already use separate ID numbers or methods for animal health programs, interstate commerce purposes and industry programs such as breed registries.  USDA wants to move toward a standardized numbering system that would enable one number to be used for all these purposes, with the data associated with each program maintained separately. APHIS documents published in the Federal Register and related information, including the names of organizations and individuals who have commented on APHIS dockets, are available on the Internet at http://www.aphis.usda.gov/ppd/rad/webrepor.html.

In related news, APHIS will host a public meeting on Nov. 19 in Kansas City for National Animal Identification System (NAIS) stakeholders, particularly those that manufacture or distribute animal identification devices and technologies.  The meeting will provide an opportunity for these stakeholders to offer comments on the administration of animal ID numbers, and will focus on anticipated roles and requirements for individuals, organizations and companies that would like to become authorized animal identification number managers or distributors. The meeting will be held from 9 a.m. to 3 p.m., Nov. 19, at the Kansas City Airport Marriott, 775 Brasilia Ave., Kansas City, Mo. Call (301) 734-5571 for more information.

Jan Lyons Honored: NCBA was pleased that NCBA President and Kansas cattle producer Jan Lyons has been named BEEF magazine's 2004 Trailblazer Award honoree. You will find a feature on Jan, and all her impressive accomplishments over the past year in this month’s edition of BEEF magazine. NCBA is proud to have such an effective leader to call their own, and is extremely pleased with Jan’s successes so far this year. Hats off to you, Jan!

World Brahman Congress:  NCBA’s Director of Legislative Affairs Bryan Dierlam addressed participants at the 2004 World Brahman Congress this week. Breeders from all over the world are in Merida, Yucatan, Mexico Nov 7- 13 to take part in the 12th annual meeting.  Dierlam’s session focused on the importance of international trading relationships and international trade policy issues.

American Shorthorn Association:  NCBA’s Executive Director of Regulatory Affairs, Dr. Gary Weber, is in Louisville, Kentucky this week for the 11th World Shorthorn Conference.  Weber is addressing attendees today giving a presentation on "BSE: Implications for the USA and Beyond."

Farm Broadcasters: NCBA member and California cattlemen Mike Byrne, along with a few members of NCBA’s Denver staff are heading to Kansas City next week for the National Association of Farm Broadcasters Convention. The team will look forward to meeting with newsmakers from across the nation and to help celebrate 60 years of farm broadcasting.

NCBA Staff News:  NCBA CEO Terry Stokes announced Nov. 4 that NCBA’s Vice President of Government Affairs, Chandler Keys, will be resigning his position on Dec. 31, 2004, after 20 years of dedicated leadership with NCBA. Keys will assume the position of Senior Vice President of Government and Industry Affairs with Swift & Company.  Keys grew up on his family cattle operation and began as a junior lobbyist with the National Cattlemen’s Association in 1984. He became vice president of Government Affairs of the newly formed National Cattlemen’s Beef Association in 1996. 

Elections for FSA Committees: This week, USDA announced that elections for the Farm Service Agency County Committees are now underway. Ballots must be returned to FSA offices or postmarked by Dec. 6 with the counting completed by Dec. 20, and committee members and alternates taking office on Jan. 1, 2005. All eligible voters are encouraged to participate in these elections to ensure they represent the broad interests of all producers each community.

USDA Surveillance for BSE: In related news, USDA continues its BSE surveillance program which began on June 1. APHIS posts the test results on their website at: http://www.aphis.usda.gov.  To date, 106,484 tests have been conducted with no positives reported. 

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

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