There's a bull in the porcelain shop

Last week someone let loose a bull in the porcelain shop. Well, it wasn't a bull, it was vertebral material from a young cow. And it was no porcelain shop--but an equally fragile and valuable trading relationship with Japan. But, after the mistakes of one inspector in Brooklyn, New York shattered the hopes for resuming normal beef trade with Japan, it's easy to see how destructive one animal can be when let loose in a vulnerable market.

Coming just weeks after the market reopened to American beef, Japan's announcement that they had resumed the blockade of U.S. beef products quashed the hopes of the beef industry regaining the some $3 billion in losses incurred because of the food safety spat. It was almost as if the Japanese were waiting for any excuse--regardless of how small-to prevent the U.S. from regaining access to their consumers. And worse yet, it capitalizes on the waning consumer confidence worldwide regarding the safety of meat and beef products, regardless of their origin.

The Australians are one of the top competitors for American meat products, but even their top trade and agriculture officials recognize the residual effects of phytosanitary concerns with U.S. beef on the world market demand and price.

In the meantime, U.S. Secretary of Agriculture Mike Johanns, U.S. Trade Representative Rob Portman, and former U.S. Trade Representative and now Undersecretary of State Bob Zoelleck have been forthright about challenging the Japanese reaction. They have issued calls for the Japanese to reconsider their ban and to accept the U.S. and international science that supports the safety of meat and even vertebrae material from cows under 30 months of age.

And perhaps most importantly, in his remarks at Kansas State University's Landon Lecture earlier this week, President Bush pleaded with Japan to "treat us like we treat you" when it comes to trade. USDA's Food Safety Inspection Service (FSIS) along with the Animal and Plant Health Inspection Service (APHIS) work daily to insure the safety and quality of agriculture products coming into our country. This includes confirming the important international phytosanitary and sanitary standards are enforced, and rejecting products that don't meet these standards are shipped back to their country of origin.

The ramifications of this ban have yet to be seen--but one thing is for sure--the U.S. beef industry is not going to stand by and watch while the Japanese doddle around trying to figure out how to deal with the mistakes of a single inspector in Brooklyn. And if the beef industry itself is impatient, lawmakers in Congress are up to their ears in calls and pleas from ranchers and packers across the country that are feeling the added pinch of the market closure.

USDA has some heavy lifting to do--both in Japan and in the U.S. As Congress gains momentum with the entire legislature back in business after the State of the Union next week--it would be no surprise to see legislative efforts that would employ tariffs, block Japanese goods. The measure of a continued Japanese blockade to American beef can only lead to one thing--and that's continued damage to the U.S. beef industry and shattered bank accounts for farmers and ranchers.

Date:1/25/06