USDA Bars the Gate for Beef Exports

By Laura Johnston, National Farmers Union Communications Director

The U.S. Department of Agriculture is preventing access to America’s leading beef customer by refusing to allow cattle processors to test for bovine spongiform encephalopathy (BSE).

Japan and 57 other countries have banned U.S. beef imports ever since a Canadian cow infected with BSE was discovered in Washington state in December 2003. Japanese officials have repeatedly told the U.S. government that it could resume trade only if all cattle processed for Japanese consumption are tested for BSE.

At least two beef processors are prepared to reestablish trade with Japan, which is the United States’ top beef customer. So far, the Agriculture Department has denied their requests for private BSE testing.

Gateway Beef Cooperative, a processing and marketing cooperative initiated by Missouri Farmers Union, estimates that Japan’s ban on U.S. beef is costing its 58 farmer-members as much as $60,000 a week. On April 30, the cooperative requested USDA’s permission to conduct BSE tests on all animals processed at its facility.

National Farmers Union also sent a letter to USDA May 13 in support of Gateway Beef’s efforts to re-enter the lucrative Japanese market by testing all its animals for BSE. At press time, USDA had not responded to Gateway Beef’s request.

However, USDA had denied a much larger processor, Creekstone Farms Premium Beef, LLC, its request to test its animals for BSE. Creekstone Farms estimates it is losing approximately $200,000 per day from lost beef sales to Japan.

In a letter to USDA, Creekstone Farms CEO John Stewart explained that, if allowed to test all its cattle for BSE, Creekstone would test more than 300,000 cattle over the course of a year, compared to the USDA-proposed random BSE testing limit of 220,000 nationwide. While USDA is planning to spend a minimum of $72 million to conduct these tests, Creekstone Farms says it would cost less than $6 million to use an identical BSE test kit.

Russ Kremer, president of Missouri Farmers Union and board member of the Gateway Beef Cooperative, said the Japanese customers Gateway has worked with are willing to pay for the costs associated with BSE testing.

“The thing about a smaller producer cooperative is the ability to forge authentic relationships with certain consumer segments,” Kremer said. “That’s the type of relationship we were starting to build with the Japanese customers, and they were willing to pay for it.”

NFU President Dave Frederickson said he found it “troubling” that USDA would deny U.S. beef producers and processors the opportunity to regain access to the international market. “Our assumption has always been if there is a willing buyer and a willing seller, you aught to let the deal go through,” he said. “Without taking measures to satisfy the needs of our international beef customers, we cannot expect to regain the full value of our export market or reopen the foreign markets now closed to our products.”

USDA officials have repeatedly said all processed animals should not be tested for BSE because it is not based upon sound science. However, National Farmers Union and others realize that consumer perception and confidence is not based purely upon scientific reasoning.

“Complete private BSE testing by these niche market processors would help restore the confidence of our Japanese customers,” Frederickson said. “It could help prove that U.S. beef is indeed BSE-free.”

“Scientifically, minimum food safety testing standards have been set,” said Gateway Beef President Robbie Meyer. “Our case is strictly based on meeting the demands of our international customers. We feel 100 percent testing for BSE is a viable way for independent processors, like Gateway, to compete by reestablishing our niche market. Also, the rigorous testing will help restore the confidence of our Japanese customers.”

Frederickson pointed out that internationally and domestically, USDA does not seem willing to give consumers the information they are seeking.

“The Agriculture Department has not supported mandatory country-of-origin labeling, although 82 percent of consumers want it. And, it does not support providing Japan, our top beef importer, with the information it needs to accept U.S. beef products, even though there are domestic processors willing and ready to provide that information,” Frederickson said.

The Farmers Union leader said he also found it ironic that USDA insists country-of-origin food labeling should be voluntary and industry-driven, yet when private industry organizations like Gateway Beef and Creekstone Farms wish to voluntarily provide information to meet a certain market’s demands, they are “cut off at the pass.”

A statement on the USDA website says, “USDA helps ensure open markets for U.S. agricultural products….” National Farmers Union’s May 13 letter urged USDA to fulfill this statement and work with Gateway Beef, Creekstone Farms and others to resume beef trade with Japan.