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Japan's BSE plan has perils for U.S.
Japanese "Tested" label could make U.S. beef less desirable
By Richard Hanson
DTN Tokyo Correspondent
TOKYO (DTN)--A long-awaited Japanese government draft plan announced Oct. 15 that will partially scrap its controversial "test-all" policy to detect bovine spongiform encephalopathy could leave foreign beef producers with a serious handicap in marketing their products, beef industry officials warn.
That was just one reaction to a package of measures cobbled together by the farm and health ministries, which would exempt cattle age 20 months and younger from testing for bovine spongiform encephalopathy (BSE). The blanket testing for the disease was introduced in October 2001 after the first case of a BSE was discovered in Japan.
Policy makers are acting under heavy political pressure to produce what may turn out to be solutions that are just as flawed as the current practices.
Three years ago, the government of Prime Minister Junichiro Koizumi panicked in crisis--along with a vast number of ordinary meat consumers, who were shocked by the news.
This time around, the government is under strong pressure from President Bush, who is running for reelection Nov. 2, to lift a total ban on all American beef and beef products that was imposed Dec. 24.
Back in the fall of 2001, public anger was further aroused by revelations that farm officials had been criminally negligent in preparing for the threat of BSE, then considered to be a European disease. The reaction by farm-lobby politicians, mostly in the ruling Liberal Democratic Party, or LDP, was to write the test-all policy into law, which says zero cattle are exempt testing from BSE.
Of the nearly 3.5 million cattle that have been tested, 11 have been found to have BSE from the screening results of testing at the slaughter house. Fourteen BSE cases in all have been reported, including a 48-month-old cow.
Critics said the current testing method will not detect BSE in young cattle aged 20 months or younger in any case.
The priority of the Ministry of Agriculture and other agencies had been working to revise the testing program so that U.S. beef imports can resume this year.
But this time they have met with strong opposition from within the ruling Liberal Democratic Party and others. The ban on U.S. beef imports can only be lifted after a revision takes effect on the Ministry of Health's ordinance governing testing for BSE.
On Oct. 15, the BSE ball was passed back to the cabinet-level Food Safety Commission (FSC) in which a group of experts had already endorsed abolishing the test-all rule for cows up to 20 months old.
That seemed to be a friendly gesture to the U.S., which is pressing for the early start of beef exports. The logic is that most cattle slaughtered in the U.S. that might wind up in Japan are younger than 20 months.
But the kicker is something only a government official can fathom--the FSC is expected to take two months to deliberate about what it has already been actively studying since at least August.
Others in the Koizumi Cabinet stepped in to explain why.
With Oct. 15 came the recently appointed Agriculture Minister Yoshinobu Shimamura, a Tokyo-born LDP stalwart who served in the post once before. Two weeks ago, he helped get things moving by sending government experts to meet with U.S. counterparts in Fort Collins, Colo. One key topic is how to judge the age of U.S. cattle, which are generally not identified.
He told a press conference the government would continue to subsidize the full cost if a local government wants to keep testing all cattle in its jurisdiction.
This may seem like a contradiction to ending the test-all policy, he said.
"It is natural to give consideration to consumers' peace of mind and the position of the meat producers," he said.
Minister of Health Hidehisa Otsuji clarified remarks about his concern that the price of beef might fall under the new policy.
"The point of my comments was that the government is willing to cooperate with local governments in taking measures that would prevent the value of such beef from declining," he said.
Foreign beef producers, however, smell a rat behind the concerns of local producers and the government plan to extend subsidies to keep testing cattle under the age of 20 months. In a nutshell, Japanese beef farmers will be able to attach the BSE-Tested government label on beef sold to the public.
Foreign beef producers--including countries such as Australia, which remains BSE free--will not carry such a safety seal on beef that is 20 months or under because they're not required to be tested. The value of the tested seal to consumers could make it more likely that U.S. beef in particular might be overlooked at the supermarket counters.
It may be argued that could amount to a double standard in the treatment of foreign beef and domestic beef, which the two sides are trying to avoid.
Japanese consumer groups have already protested the new proposals to revise the test-all policy. As things stands, the government will be obliged to run an extensive public relations campaign and hold public meetings in about 50 locations, one report said.
All of this will be an added burden on U.S. and Japanese negotiators, making it had to predict just when U.S. beef can be expected to arrive once again in Japan, which has been a lucrative market for the U.S. with an annual sales figure of about $1.2 billion.
Apart from any quiet talks that may be going on at the top level, the most likely scenario for reconvening meetings could take place in the next two weeks, said one government official.
Washington has been seeking an early resumption, but its ability to pressure Japan politically may be waning despite public statements of encouragement and support from some in the government including Prime Minister Koizumi.
There are reports of a basic agreement to resume imports before the presidential election Nov. 2. But some suggest an actual resumption of beef imports will have to wait until next spring.
Date: 10/19/04
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