NCBA President-Elect Responds To R-CALF

Following is a copy of a letter from NCBA president-elect Lynn Cornwell to 
R-CALF President Leo McDonnell regarding an R-CALF release issued 8/28/00.

August 29, 2000 

Leo McDonnell, Jr.
President, Ranchers-Cattlemen Action Legal Fund
P.O. Box 30715
Billings, MT 59107

Leo,

It is difficult to find the words to express how disappointed I am that you would choose to issue a press release rather than come to me with concerns over my reported comments to the Canadian Cattlemen’s Association. Had you sought to seek out the truth, you might have found that you and I hold opinions that are not so different.

I took your comments and those of R-CALF board members very personally. I have really enjoyed my opportunity to serve as a leader for the industry. However, these personal attacks frustrate me, do nothing to improve beef demand and ensure the long term well-being of the cattle business, and seem to serve no purpose but to advance your organization's agenda.

Here’s what I did say in Alberta:

• I said that NCBA policy dictates that we enforce all trade laws, hence our letter to
  enforce the rules to not use the grading stamp on Canadian carcasses.

•  I said I believe in trade. In fact, the highest priced feeder cattle my family has ever sold went last Friday to Alberta feeders.

•  I said that I was president of the Montana Stockgrowers when R-CALF raised its issues and we – the MSGA board along with NCBA – should have been more aggressive in answering the questions you raised. There was no reason then – or now – to form another organization to drain producer resources.

•  I said that the entire beef industry should be headed toward the day when we eliminate the current grading system and move to a more objective system based on real value. It makes little sense to invest a year to 18 months in producing a finished animal to have it graded and it’s value set subjectively in six to seven seconds.

I believe that every producer has contributed to increased demand through the checkoff. And no one organization – not R-CALF, MSGA, NCBA, or whatever – can take credit for doing it alone. Together we can make good things happen.

It is unfortunate that producers in Montana had to feel so frustrated with their national organization that they felt compelled to organize another group. That is why I felt bad that as the past president of the MSGA we were unable to answer these questions and stop it before it started. We sought out the best legal counsel we could in Washington, D.C., and were told that the chances of a successful trade action were extremely small. So we chose to find other solutions to the problem. We should have communicated the reasons for this decision more aggressively to producers.

NCBA has worked – and will continue to work – aggressively on a host of trade issues on behalf of beef producers. Partly as a result of these efforts, we set record exports during 1999 of 1.113 million metric tons valued at $3.2 billion with a new record being set during the first six months of 2000 that is 22.2 percent higher in tonnage and 23 percent higher in value than exports during the first six months of 1999. In addition, NCBA has:

• Initiated and won a trade case against Korea to assure that the Korean market becomes liberalized at the end of this year.

• Passed country-of-origin labeling legislation through the Senate, but it was defeated in the House.  Now, we’re working to implement a voluntary “Beef: Made in the USA” program.

• Pressed USDA to publish the rule that would stop the grading of imported carcasses as promised in an earlier USDA press release.

• Spent thousands of hours and dollars on the European Union issue to protect our positioning power and product image and to keep markets open around the world.

• Refined and increased the Northwest Project to gain access for U.S. feeder cattle to the Canadian market.  Last year a record 180,000 U.S. feeder cattle (75 percent of them from Montana) were sold to Canadian feedlots.

• Neutralized the dumping case against U.S. beef filed by Mexican producers and maintained access for U.S. beef in Mexico, now the second largest export market after Japan.

• Secured approval of the China trade agreement in the House and will be working aggressively to finalize approval in the Senate during October.  This agreement provides major tariff reduction and market access for U.S. beef and recognizes USDA as the accepted inspection agency for product destined for China.

• Assured that beef was included in last years Russian food aid package, boosting 1999 sales of beef and beef variety meats nearly $100 million above 1998 sales.

• Working to protect U.S. herd health from any threat of Foot-and-Mouth Disease by assuring that any beef imported from South American countries meets strict science-based guidelines that are strictly enforced by USDA.

• Working to assure that there is no illegal trans-shipment of cattle from Australia, Uruguay or other countries to the U.S. and that there is one set of standards for importing cattle whether they enter Canada, Mexico or come directly into the U.S.

I felt good about the sense of unity and commitment in finding industry solutions to our mutual problems that came out of the Beef Industry Summer Conference. I’m confident that you and I will find ways to work together on many of these issues to move the industry forward.

None of my remarks were intended to offend anyone personally. As a lifelong friend, however, I’d appreciate a phone call, instead of a press release, to discuss our differences and seek solutions.

Sincerely

 Lynn Cornwell

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Producer-directed and consumer-focused, the National Cattlemen's Beef Association is the  trade association of America’s cattle farmers and ranchers, and the marketing organization for the largest segment of the nation’s food and fiber industry.