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Kansas City (Dow Jones) - The U.S. Department of Agriculture's mea-culpa over mistakes that were
made in the shipment of veal to Japan that contained banned spinal column bone irritated a growing
frustration within the U.S. cattle industry over the whole issue of getting the market reopened to U.S. beef.
The market was closed Dec. 23, 2003, when the U.S. announced the discovery of its first case of bovine
spongiform encephalopathy, or mad-cow disease, in an imported Washington cow. It was reopened almost
two years later in December 2005 but was put on hold when the veal was shipped in January this year.
U.S. Agriculture Secretary Mike Johanns said at the National Cattlemen's Beef Association convention
in early February that the shipment should not have taken place because those bones were expressly banned
in the trade agreement that partially reopened the Japanese market to U.S. beef. It did not matter that the
veal was ordered with the bone on, he said.
The growing frustration with Japan's extra inspections, safety requirements and testing before allowing
U.S. beef products into a country that has had 22 cases of its own, along with a 2001 ban on meat and bone
meal in cattle feed that falls far short of the U.S.' 1997 ban was evident among conventioneers.
Many convention attendees expressed a desire to move on and focus U.S. efforts on expanding other
export markets. Some even talked of some form of retaliation.
Such conversations resurfaced in the wake of Friday's USDA release of the report on its investigation
into the veal incident.
John Nalivka, president of Sterling Marketing in Vale, Ore., said: "When does the cost (of jumping
through Japan's hoops) excede the benefit? I think we passed it a long time ago."
Nalivka also warned the U.S. beef industry to refocus its attention on serving up a "quality product" to its
largest customer, the U.S. consumer, which consumes 90% or more of its production. He feared that the
industry lost its focus on genetics and other production measures that will produce a better eating
experience over the last few years.
Artificial demand boosters like low carbohydrate diets combined with a declining herd created profitable
conditions for producers, and many may have lost sight of the need to service their customers. This need is
becoming increasingly evident with rising pork and chicken production, offering consumers a ready
alternative if they aren't satisfied with the beef they're getting, he said.
If beef loses its customer base, it could be hard to get them back, Nalivka said.
"It costs more to get a new customer than to maintain the one you've got," he said.
E-mail: sflanagan@sprintmail.com |
