Volume XII Number 3
May/June 2004
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Why We Can't Give In to the Japanese



by Ann Barnhardt

Okay, folks. Here’s the plan. I am writing this article on Friday, April 2nd. This issue of Feed Lot magazine won’t be put in the mail until May 12th. The Japanese border is still closed to U.S. beef at this time. I figure that if I write an article railing about how asinine the Japanese are being on this issue, assuming Murphy’s Law holds true, by the time this article lands on your desk, the border could be open, the whole article would then be moot, and I would look like a real jarhead. It is a risk that I am willing to take. Unfortunately, at this time, the prospects of the Japanese coming to their senses between now and then appear remote.

At this time, the Japanese are demanding that we test 100 percent of our kill, regardless of age, in order to resume trade. Gee whiz, that might be a reasonable request if the U.S. had ever actually had a single case of domestic, home-grown BSE. But we haven’t. We all know where the infected cow, and the infected feed, came from. Enough said. Our Northern Neighbors are suffering mightily. No need to pile on.

The US feed ban was implemented in 1997. Since good-eatin’ type cattle are killed at 1 1/2 to 2 1/2 years of age, what possible sense does it make to test animals who were born fully five years after the feed ban was implemented? It doesn’t make sense. It is completely illogical, and if we set a precedent of caving in to illogical demands now, the Pandora’s Box will be opened, and every nation on the planet will be lining up to stick it to the Yankees with goofy non-tariff trade barriers.

Another problem that has arisen is the communicated willingness of some smaller processors to test 100 percent of their kills for BSE. Some folks say, “Hey, if they want to do it, then they should be able to.” Unfortunately, it isn’t that simple. If these plants test their kills, it will completely undermine the rest of the industry’s position, and as discussed in the previous paragraph, we can not go down that road. Can’t you just hear the Japanese delegates now, saying “If Happyland Packer can test 100 percent of his kill, then everyone else can too.” Can’t you also hear the veggie wackos saying, “If U.S. beef has to be tested for the Japanese, how can non-tested beef be safe for U.S. consumers?” Fear mongers will always try to play on the ignorance of the masses. We can’t give them the ammunition.

Now I don’t want to hear anyone saying that those small packers are “stupid” or “selfish.” These small, high-quality processors tend to export more of their product to Asia, and have been hit harder than most other packers. Many of them are staring down the barrel, and are in serious risk of going out of business. They are desperate, and are trying to keep afloat by any means necessary. Many of us would do the same thing if we were in their shoes.

Another can of worms that would be opened would be the cost of testing every animal. Current estimates peg the per-head cost at $20-$50. And who would foot the bill? Ultimately, the producer and the consumer would. Since packers are middle men, they would factor that additional fixed cost into their breakeven, resulting in lower prices paid to producers, and higher prices on beef going out the door, in order to maintain margin. This dynamic isn’t a conspiracy; it is simply a fact of how businesses function.

The bottom line is this: there are 292 million people in the US, and each of those 292 million devour beef at a rate of 64 lbs. per year. If this nation of beefeaters had a BSE problem, believe me, we would have seen a human case long, long ago, along with a slough of bovine cases. The reality just doesn’t support the supposition.

Sometimes good risk management demands an aggressive posture. I believe that the USDA, and the federal government in general, should move away from their heretofore passive, appeasement approach and start getting tough. Call the Japanese’ bluff. We know that they aren’t holding any cards. We, on the other hand, are holding the “pocket aces” of cold, hard science and common sense. If the Japanese don’t want our beef, then so be it. But, in turn our ports should reassess the “safety” of incoming Japanese cars, televisions and video games. ©


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