02/07/05 Latest episode of beef soap opera, Pt.2

02/07/05 Latest episode of beef soap opera, Pt.2

It sure has been an action packed last few days when it comes to the various components of getting the U.S. beef industry back to a state prior to May and December of 2003. In those months respectively, Canada, then the U.S., announced cows in their respective countries were confirmed to have Mad Cow Disease. That resulted in a closure of markets & the U.S. closing the border to Canadian live cattle and beef after May, the reciprocal effect when the U.S. announced a case of b.s.e. in December, and both North American countries losing markets in areas like Southeast Asia and Mexico. Most of the talk over the whole world wide beef market soap opera recently has focused on the debate over U.S.D.A.'s final rule to reopen the U.S. border to Canadian live cattle and beef products currently banned on March Seventh. That includes last week's U.S. Senate Agriculture Committee hearing on the final rule featuring testimony from U.S.D.A. Secretary Mike Johanns, and reports from the National Cattlemen's Beef Association that Canadian beef is in reality safe and that projected Canadian live cattle numbers that could come into the U.S. if the border reopens in March would be significantly smaller than previous U.S.D.A. estimates. And all that doesn't even include R-C.A.L.F U.S.A's recent injunction filing to prevent reopening of the border. But maybe the biggest news could be speculation on an upcoming event. It was at last week's Cattle Industry Convention that a member of the technical team working to resume U.S. beef trade with Japan, Gary Smith, announced he believed that an resumption agreement could be reached sometime this week, or early next. And he adds that once Japan, known for their strict b.s.e. testing standards, allows U.S. beef back in, other nations will follow suit. SMITH: The key is Japan. Taiwan will also follow Japan. So the moment we get it settled in Japan and I believe that that's going to happen probably in the next ten days, we'll have an agreement with Japan. That won't mean we won't have beef on the water, we'll get beef as quickly as we can get this beef export verification program put together but I believe we'll be over there in March or April. Now understand that U.S.D.A. has not made public comment on when they expect an agreement with Japan or when beef trade might resume. However, cattle industry insiders says Japan is currently reviewing a U.S.D.A. report on cattle age verification, which would prevent U.S. beef cattle from over twenty months of age from being exported back to Japan. The U.S. is expecting formal Japanese comment on the proposal as early as this week.
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