Tissue discovery in shipment prompts renewal of Japanese ban on U.S. beef

Vertebral tissue poses no health threat; Johanns pledges USDA investigation

By Jeff Caldwell

Beef trade between the U.S. and Japan was again halted Friday, Jan. 20, after vertebral tissue was discovered in a small shipment of U.S. beef at a Japanese port of entry.

The vertebrae, which alone is not considered a specified risk material (SRM) under Organization for International Epizootics (OIE) guidelines, prompted the stoppage because its presence violates the specific agreement the U.S. shares with Japan for beef trade.

Under the agreement reached Dec. 12, 2005, the U.S. could export boneless beef to Japan from animals 20 months of age or younger. Trade was disrupted in 2004 when a case of bovine spongiform encephalopathy was discovered in the U.S. To date, Japanese animal health officials have confirmed 21 domestic BSE cases.

"Under U.S. regulations, the backbone, or vertebral column, that was exported to Japan is not a specified risk material because it was in beef under 30 months," said U.S. Secretary of Agriculture Mike Johanns Jan. 20. "However, our agreement with Japan is to export beef with no vertebral column and we have failed to meet the terms of that agreement."

The backbone tissue found Jan. 20 was discovered in an 800-pound shipment of beef from veal animals around six months of age. U.S. beef industry organization leaders agreed the shipment in question posed no risk to either cattle or human health. Instead, it boils down to an issue of trade only.

"It is our understanding that a small shipment of veal from calves that were under six months of age was shipped. The product was inspected and passed by USDA as safe, but contained bones prohibited by the Japanese," said J. Patrick Boyle, American Meat Institute president and CEO, Jan. 20. "This product is consumed with confidence here in the U.S. It is important to note that BSE has never been detected in an animal this young."

While the specific plant of origin was not announced, industry members said it is a small operation in New York.

"We're talking about a little outfit in New York that doesn't handle choice beef anyway," said Steve Bohr, manager of B & B Cattle Company, Inc., a 5,000-head feedyard in Holdrege, Neb., Jan. 20. "We're talking about a veal animal. It shouldn't have been exported to begin with, probably."

Johanns outlined the consequential plan of action Jan. 20 that will now be enacted in an effort to repair the damage the Jan. 20 discovery has done to beef trade relations between the U.S. and Japan. The plan includes a thorough federal investigation of the USDA Food Safety and Inspection Service, the agency's arm that oversees inspection of beef shipments destined for foreign ports.

"I have talked with (Japanese) Ambassador (to the U.S., Ryozo) Kato and I expressed our regret and informed him of our actions. I also offered to provide in writing a very detailed report of our investigation and the actions we intend to take," Johanns said. "The processing plant that exported this product, I do want to indicate to you, has been delisted and therefore can no longer export beef into the Japan marketplace. We will take the appropriate personnel action against the USDA Food Safety and Inspection Service employee who conducted the inspection of the product in question and approved it for shipment into the Japanese marketplace."

The investigation Johanns announced Jan. 20 were met with support by some industry members, including Terry Stokes, CEO of the National Cattlemen's Beef Association. Stokes called for swiftness in the investigation in order to hopefully restore trade with Japan that now stands as "temporarily suspended."

"As beef producers, we take the matter of beef safety and trade protocol very seriously, and we insist the situation be fully investigated," Stokes said. "We support USDA in taking the immediate necessary steps to see that this violation is addressed and that every assurance is given to Japanese government and consumers that U.S. beef remains safe.

"It's important to remember what's being investigated is a technical violation, not a beef safety issue. The bottom line for our consumers around the world remains the same: U.S. beef is safe."

Despite the assurances of investigations by USDA and support by the National Cattlemen's Beef Association, some expressed concern at this very union of opinion. Walt Hackney, president of Hackney Cattle Co., in Omaha, Neb., said this is indicative of the "collusion between USDA, the packers and NCBA" that has driven the BSE situation since the first suspected domestic case was discovered.

"For years, I have been a very vocal person in regard to the collusion between USDA, the packers and NCBA. I have felt that was an unreasonable activity that was being allowed to occur," Hackney said Jan. 20. "Now the government is in fact investigating USDA for a failure to respond to complaints. As a result of all this, you're seeing the result now of flagrantly allowing some packers to ship beef that's in violation of an agreement we have with the Japanese government."

Hackney, a long-time livestock market analyst, cattle buyer, packing plant manager, cattle feeder and state livestock marketing director, said he expects consequences to be serious in terms of any potential future U.S. beef trade with Japan. He said he feels the market will eventually re-open, but it will do so with formidable caveats.

"I do think the Japanese government will be more reasonable in this issue than they were possibly in the negotiations to get our beef imported to their country to start with. I think they will make us jump through unbelievable hoops now in order to assure them that this will never happen again," Hackney said. "I know that's a broad statement, but that's what they're going to require. And, if we can't guarantee it, there will be some enormous retribution against USDA."

High Plains Journal/Midwest Ag Journal columnist Ken Root contributed to this report. Jeff Caldwell can be reached by phone at 515-280-5405 or by e-mail at jcaldwell@mchsi.com.

Date:1/26/06