The National Livestock Weekly June 6, 2005 • Vol. 84, No. 34 “The Industry’s Largest Weekly Circulation” www.wlj.net • E-mail: [email protected] • [email protected] • [email protected] A Crow Publication Korean trade agreement expected soon USDA and U.S. beef packing industry officials U.S. beef processing and ranching facilities to see indicated last week that they are hopeful that first hand the efforts that have been made to pre- South Korea, the third largest pre-BSE export vent the spread of BSE and prove the safety of U.S. market for U.S. beef, could be reopened to U.S. beef beef. Packing industry officials called last month’s before the end of June. However, tour a big success, with several Korean officials said that while an sources saying the contingent was agreement may be made this more than satisfied that the appro- month, actual resumption of beef “Beef demand priate efforts to eliminate the dis- trade with the U.S. could still be ease had been made. a few months away. over there is A high-level USDA official told Ateam of Korean veterinarians really starting WLJ last week that a possible are scheduled to visit the U.S. to rebound, trade resolution with Korea could June 6-10 to examine the U.S.’ and (short) be announced during the June 6- BSE prevention and surveillance 10 tour, particularly with U.S. and protocol. Sources said the visit supplies are Korean trade officials meeting pri- could lead to a decision to reopen starting to or to that scheduled event. Korea’s borders to U.S. beef in become an U.S. Trade Representative Rob the “very near future.” issue.” Portman is scheduled to meet with Seoul has expressed its inten- Korean officials during the Asia- tion to lift the ban, following the Pacific Economic Cooperation footsteps of Mexico, Taiwan and trade minister’s meeting on Cheju several other smaller export Island, which was scheduled to markets. High quality hay to Korean officials, however, said it will take months start June 3. Korean Trade Minister Kim Hyun- until the sale of U.S. beef is allowed in the Kore- chong and Portman are expected to hold bilater- be in short supply an market due to some technical problems. al talks on the sidelines of the meeting. “If experts agree that U.S. beef is safe to eat, trade U.S. agriculture officials said that it is possible Average to good quality previous 10 years. representatives will meet several times. They will an agreement will be reached during those nego- “cow hay” is expected to In its May 1 Crop Production Re- negotiate sanitary conditions and other safety is- tiations, but that no announcement of it will be be much more readily port, USDA said U.S. hay stocks to- sues, which are necessary for the U.S. to export beef made until the Korean veterinarians conclude available later this year taled 27.7 million tons, almost sev- to South Korea again,” said Park Hyun-chool, a di- their tour and “sign off” on the U.S.’ BSE controls. and a little cheaper to buy, en percent more than May 1 last rector at the Ministry of Agriculture and Forestry As far as the time line for reopening the Kore- compared to the previous couple of year and 26 percent more than the (MOAF), in a press release. an border is concerned, officials with U.S. proces- years, thanks to a second straight same date in 2003. The increase was The Korean delegation will be led by Kim Chang- sors were under the impression that Korea does year-to-year up-tick in mid-year hay attributed to an array of factors, such sup, an MOAF official. The delegation will inspect not have as strict of a regulatory protocol as Japan, stocks and an increase in projected as increased hay production in 2004, the improved U.S. quarantine system aimed to pre- and that Korea could be reopened to U.S. beef total harvest for 2005. However, high- a mild winter in the western U.S., vent BSE. within weeks of an agreement being reached. Meat er quality hay could still be in short and reduced demand in that region. The U.S. government has claimed it enhanced export specialists agreed with that; however, they supply, and transportation and har- Twenty-six of the 48 continental disease control programs to meet international said that Korea is still in the middle of figuring out vest costs could still make hay a lit- states reported an increase in hay standards for beef trade. Last month, a group of what kind of protocol they want to agree to. tle more expensive, compared to the See Hay on page 6 Korean consumer group representatives toured See Korea on page 8 ESA changes to be offered Beef slide — House Following on the expects to begin review of proposed legislation “The Endangered Species Act’s less than one strains fed report cites heels of a Republi- this summer and hopes to send a proposed bill percent success rate for species recovery is a well- can–authorized to the full House before the August recess. documented and readily-available statistic, but market program staff report stating On May 17, House Resources Committee the status of the remaining species on its list has Memorial day weekend was shortfalls. that the Endan- Chairman Richard W. Pombo, R-CA, released not been as clear until now,” Pombo said in a a big disappointment from a gered Species Act a report, Implementation of the Endangered press release. “This exhaustive review of gov- beef sales perspective, and the (ESA) is not working, Species Act of 1973, that said less than one per- ernment data makes it clear the vast majority fallout pressured fed cattle bills restructuring the cent of protected species have fully recovered, of these species have not improved under im- prices downward $2-4. law are expected to be introduced into the U.S. while nearly two-thirds have fallen into the cat- plementation of current law.” The boxed beef cutout was House and Senate this summer. egories of uncertain, declining or possibly extinct. Environmentalists and other critics say the under serious pressure on the Brian Kennedy, communications director for Pombo requested the House Resources Commit- report overlooks the lengthy recovery time need- Friday prior to the popular the House Resources Committee, said, “I can’t tee’s Oversight & Investigations staff to re- ed by many species, which often takes decades. grilling weekend, being down give you an exact time line,” but the committee search and author the report. The report disagrees, saying, “From the op- nearly $5 for that day. Follow- posing perspective, while recovery to the point ing the anticipated big sales of delisting may require a substantial amount weekend, packers found them- of time for many species, after three decades selves with large inventories Injunction debate slated more progress should be demonstrable through and held a midweek fire sale species that have recovered and been delisted. last week, with the Choice The Ninth Circuit Court of Appeals an- der until a decision on the permanent injunc- Even if a species has increased in numbers or cutout falling to $144.28. Trade nounced last week that it will hear oral ar- tion is made. distribution or the threats facing the species have volume was exceptionally large, guments regarding the previously-approved If the appellate court upholds Cebull’s orig- been reduced, if it has not been delisted on the with 807 loads trading last preliminary injunction request against Cana- inal ruling, the ban on Canadian live cattle basis of recovery, the ESA’s prohibitions and Thursday and another 693 dian live cattle imports on July 13 in Seat- will remain in place until the permanent in- regulations remain applicable and the ESA loads moving the day previous. tle, WA. junction verdict is reached. Legal sources should not be a ‘oneway street.’” The boxed beef cutout was down The appellate hearing is just over two said if the appellate court upheld the prelim- Critics also say the report looks strictly at the nearly $15 from the prior week. weeks before U.S. District Judge Richard inary injunction that it would be a major costs of the act and weighs none of the benefits. As a result, fed cattle prices Cebull, Billings, MT, is scheduled to hear win for R-CALF in its efforts to keep the Jamie Rappaport Clark, who oversaw the See Markets on page 11 arguments concerning a permanent injunc- border closed to Canadian beef and cattle. The U.S. Fish and Wildlife Service in the Clinton ad- tion request against Canadian live cattle permanent injunction request includes all ministration, is quoted by several news servic- and beef. That hearing is scheduled in Canadian beef, in addition to live cattle. es as saying the law is a “remarkable success.” Billings on July 27. R-CALF has said reopening the border to She said that just one percent of listed species If the appellate court overturns Cebull’s Canadian cattle and beef will irreparably have gone extinct. original ruling accepting R-CALF USA’s re- harm the U.S. industry because it does not Those touting the success of the Endangered quest for a preliminary injunction against have adequate enough BSE mitigation meas- Species Act point to the bald eagle, California Canadian live cattle entering the U.S., it is ures in place. It has also argued it is likely condor, red and gray wolves, whooping crane, likely Canadian live cattle would be allowed more Canadian cattle are infected with the Canadian lynx and other species as examples immediate entry across the northern bor- disease.