Ban on testing beef doesn't cut it

Chicago Tribune Editorial
April 20, 2004

Traditionally the U.S. government has been in the business of tearing down barriers that block American exports from being snapped up by foreign consumers. It seems bizarre that the government is now building barriers to keep U.S. beef from being sold overseas.

The dispute began last year when one case of mad cow disease was found in the U.S. As a result a number of nations, notably Japan, grew fearful of importing contaminated beef and demanded that all U.S. beef be tested before it was sold for export to them.

Some small beef producers were fine with the requirement, but some of the major meatpackers were not. The federal government, under industry pressure, has banned producers from doing independent testing for mad cow disease.

The result is that American beef is getting shut out of some profitable foreign markets, particularly in Asia.

The American Meat Institute, which represents large meatpackers, argues that such testing is not warranted and would unnecessarily scare or confuse American consumers. More likely, the industry fears that any additional testing, or slowing down of the processing at meatpacking plants, would eat into their profits. Meatpackers' efforts to pressure or manipulate the export market are considerably misguided.

When foreign importers began demanding testing for mad cow disease, William Fielding, chief operating officer of Creekstone Farms in Kansas, set up a lab to do just that. The American-made test kits cost approximately $15 per head of cattle.

Fielding says that various countries have had different requirements for their beef--cuts, packaging and even color--and he is happy to test for mad cow disease if that's what the buyers want. He had carved a profitable foreign market, especially for tongue, stomach, liver and other cuts he calls "spare parts." The profit was substantial--a tongue fetched $17 in Japan but only $3.50 in the U.S.

The Department of Agriculture's ban, though, has wiped out Fielding's access to Japan. Instead, Australia--willing to play ball--has moved in. Recent shortages caused by the American pullout have pushed the price of tongue in Japan to $42. Australians get the profit.

Claims by major meatpackers that Japanese demands for testing amount to protectionism simply don't wash. On the contrary, Japan, Korea, Russian and other importers are quite eager to buy our beef as long as American producers comply with the requirements.

If foreign buyers want to pay and domestic producers are ready to sell on their terms, why in the world is the U.S. government standing in the way?