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Beef Movement Spurs $85-Plus Feds Ing the Senate the Right to Vote Ing the Effectiveness of Food Safe- on a Judicial Nominee

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Beef Movement Spurs $85-Plus Feds Ing the Senate the Right to Vote Ing the Effectiveness of Food Safe- on a Judicial Nominee The National Livestock Weekly July 26, 2004 • Vol. 83, No. 41 “The Industry’s Largest Weekly Circulation” www.wlj.net • E-mail: [email protected] • [email protected] • [email protected] A Crow Publication BSE testing exemption foreseen, but... — Japan to require U.S. compliance with that exemp- mouthing cattle, also known as wise, but it has been a very hard tion later this year. Several USDA age-verification tion may take a little bit longer dentition, is being used to age cat- sell, and no breakthrough is fore- sources are hopeful to have some than originally expected. tle as they start through the slaugh- seen.” semblance of individual animal ID system first. “We are definitely optimistic that ter process, however, that is an in- USDA officials are hopeful they in place by the end of August or ear- By Steven D. Vetter Japan is going to drop the require- exact science that the Japanese can come up with some sort of phys- ly September. WLJ Editor ment that all U.S. cattle be tested are unwilling to accept as an appro- ical age-verification process that Last week’s meeting was the Final results of last week’s two- prior to having beef shipped over priate age verification process. Japanese officials will agree to, but third of three scheduled discus- day meeting between Japanese and there,” said one high-level USDA USDA officials said they have until then the focus will be on get- sions specifically on the BSE, beef U.S. scientists and agriculture of- trade source. “However, the Japan- tried to propose to the Japanese ting the U.S.’ national animal ID trade issue. There is another meet- ficials, in Japan, concerning U.S. ese are going to require an exten- that any beef from cattle that have program up and running, particu- ing scheduled next month between beef reentering Japan’s meat mar- sive paper trail detailing that U.S. a question arise about their age larly for producers and manufactur- high-level government officials, ket weren’t available as of press beef entering their border is indeed will automatically be ineligible for ers wanting to tap the Pacific Rim which is more designed to talk time last Thursday. Several US- from cattle that meet the 20-month- export. The Japanese said there is market, specifically Japan. about the broad issue of U.S., Japan DAofficials indicated that Japan is and-under age requirement. It ap- no “foolproof” way to ensure that “We are moving forward with beef trade relations and the over- serious about exempting cattle 20 pears that a solid, thorough individ- some questionable product could- the ID plan, and will hopefully have all handling of the BSE issue by months of age and younger from ual ID program will need to be in n’t get through the processing individual animals being tracked both countries. having to be tested for bovine place before we might be allowed chain. and traced back by the end of the When Japan might formally an- spongiform encephalopathy (BSE). to ship beef over there.” “They feel our chain speeds are year,” the USDA source said. nounce the testing exemption on Those same officials said that In addition, agency officials said too fast to insure 100 percent con- The premise identification phase younger cattle was unknown, how- there are efforts being made to fidence in young beef being the sole of the U.S. Animal ID Program ever, several sources thought it come up with other processes to product destined for their market,” (USAIP) has been started, and the would happen before the end of Au- conclusively determine the age of the USDA trade source said. “We second phase of individual animal gust, maybe the first half of Septem- Recall cattle being processed. Currently, have tried to convince them other- ID was expected to be put in mo- ber. “They (Japanese officials) have to really work towards gaining the process approval of Japanese consumers before they can move ahead with any formal announcement chang- under ing BSE protocol,” the USDAtrade source said. “It will take a little bit of time to gain their confidence in scrutiny such an action.” — WLJ — Agency doesn’t expect wide ranging changes. Myers By Steven D. Vetter WLJ Editor denied The federal agency in charge of gathering potentially contam- inated meat and keeping it from 9th seat human consumption could be By Sarah L. Roen forced to change its protocol for WLJ Associate Editor that process following a recent Senate Democrats rejected a investigation. vote last week to consider a According to a report from Photo by Sarah L. Roen friend of the livestock industry USDA’s Inspector General’s (IG) These cows were headed down to water on a hot summer day. The cows belonging to the Wolford Hereford Ranch, to serve on the Ninth Circuit office, recalls may not get as Court of Appeals panel. Senate much “tainted” meat off the mar- located in the San Juan Mountains outside of Ridgway, CO, have enjoyed lush green grass despite below normal snow pack and runoff this spring and summer. Recent rains have helped the situation more than normal. Republicans were openly disap- ket as the agency’s Food Safety pointed by the narrow loss, say- and Inspection Service (FSIS) ing once again Senate Democ- would indicate. rats are making history by deny- “(FSIS’) Conclusions regard- Beef movement spurs $85-plus feds ing the Senate the right to vote ing the effectiveness of food safe- on a judicial nominee. ty recalls may be based on inac- — Early-week waiting for bids of at least $87 from Most analysts said the heavy William G. Myers had been curate or incomplete informa- trading was under packers. Most analysts said that boxed beef movement forced pack- awaiting a Senate up or down tion,” the IG’s report said. because $87 was still a discount to ers into buying cattle at a higher cattle value. vote for several months. Myers The focus of the IG investiga- the nearby futures contract, produc- price, even though the price paid for was nominated by President tion was a summer of 2002 re- — Calves, yearlings ers were still happy to hold on to cat- boxed beef kept them from show- Bush on May 15, 2003, and was call of almost 27.4 million struggle despite corn tle to get that much, if not more. ing a positive profit margin. approved by the Senate Judi- pounds of deli poultry products The tide turned in favor of “Packers are now in a supply ciary Committee on April 1, from a Wampler Foods plant, declines. prospective sellers after last deficit situation, and they need to 2004. Wednesday’s spot cash boxed beef Franconia, PA. The recall, vol- The entire complexion of last turn that around regardless of what Livestock industry advocates trade showed more than 550 loads untarily ordered by Wampler’s week’s fed cattle market turned they are making from a profit stand- were enthusiastic about Myers of fabricated cuts sold. In addition parent company, Pilgrim’s Pride, significantly in cattle sellers’ favor point,” said Marquotte. nomination because they felt was monitored by FSIS and re- after the largest one-day movement to that, another 500-plus load day The continued slump in boxed was reported Thursday. there could finally be a knowl- sulted in eight deaths and at of boxed beef reported in some time. beef prices spurred retailers desire Analysts said that active boxed edgeable livestock industry rep- least 45 people getting sick. Last Wednesday saw prices for fed to buy beef. As of Thursday midday, resentative serving on a judici- beef movement had packers scram- the composite Choice cutout value In that case, FSIS had termi- cattle turn from mostly $82-82.50 ary panel which hears a major- bling to find slaughter-ready cattle was $136.16, while Select was val- nated the recall process of poten- ity of cases that affect agricul- the previous day in northern cattle that they could get processed to fill ued at just under $134. tially contaminated meat after feeding areas, to mostly $85 across ture and particularly cattle pro- approximately 5.5 million beef storage space that was empty- Not only are overall boxed beef the entire country. At $85, last ducers. pounds of suspect products had ing at a rate much quicker than values dropping, but Choice is re- week’s trade was $2-3 higher than See Myers on page 6 been recovered, and 582 recall anticipated. gaining back some of its Premium the majority of trade the previous forms had been submitted. How- “They (packers) went from hav- that was lost the previous several week. ing more than adequate supplies, ever, the IG investigation said weeks. As of Thursday, the that 389 of those recovered As of press time Thursday, re- to being in a short-supply situa- ports showed 55-60,000 cattle trad- tion,” said Reed Marquotte, M&Z Choice/Select spread was back over forms showed discrepancies, $2.25, over $1 higher than the pre- which put not only the total ed in Nebraska between $82.50-85 Livestock Analytics. “We are talk- live, $130-134 dressed, while both ing about almost 42 million pounds vious week, and analysts said that amount of recalled product in- means packers would be back to to question but also raised the Texas and Kansas were showing (21,000 tons) of beef cuts moving 30-35,000 head moving at mostly needing more Choice cattle to fill question “How effective is the over two days.
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