News Update
March 12, 2010

NCBA Commends Johanns, Lincoln for Bipartisan Resolution on Beef Trade with Japan

The National Cattlemen’s Beef Association (NCBA) applauds Senators Mike Johanns and Blanche Lincoln for their resolution calling on the Obama Administration to insist that Japan immediately grant increased market access for U.S. beef. The resolution calls attention to Japan’s arbitrary and unscientific restrictions on U.S. beef trade.

Following a detection of bovine spongiform encephalopathy (BSE) in the U.S. in 2003, Japan closed its borders to U.S. beef. Today, Japan only allows beef products from cattle under 21 months of age, which is limiting us to only 25% of the potential market for U.S. beef in Japan. American beef producers have been losing about $1 billion annually because of this ban.

“Japan’s trade restrictions are completely unjustified,” explains Steve Foglesong, president of NCBA and rancher from Astoria, Ill. “It isn’t based on sound science, and it is in violation of international guidelines.”

A 2006 U.S. Department of Agriculture (USDA) study found that BSE was virtually nonexistent in the United States. Internationally, it is likely that BSE will be fully eradicated from the planet within the next 10-15 years. The World Organization for Animal Health (OIE), has classified the Unites States as a controlled risk country for BSE — the same designation as Japan.

“Senator Johanns brought this trade imbalance to the forefront by questioning how Japan would respond if the U.S. were to ban all imports of Japanese cars because of safety issues with some Toyota vehicles,” Foglesong states. “The U.S. would never consider such a heavy-handed and excessive measure, but that’s essentially what Japan has done to U.S. beef. I’m pleased that Senator Johanns demonstrated the inconsistencies and flawed thinking behind this ban.”

The bipartisan resolution calls upon the Administration to immediately work to end this trade imbalance.

“This issue is critical to beef producers, but it goes far beyond our industry. Ten-percent, or approximately 12 million American jobs, depend on exports,” Foglesong says. “In this economy, we simply cannot afford to allow our closest trading partners to unfairly restrict market access. NCBA is urging Congress to support this resolution, and encourages the Obama Administration to begin work to end this ban immediately.”

— Release by NCBA.

USDA and DOJ Hold First-Ever Workshop on Competition Issues in Agricutlure

The U.S. Department of Agriculture (USDA) and the U.S. Department of Justice (DOJ)  hosted on March 12 the first-ever joint public workshop on competition and regulatory issues in the agriculture industry. The workshop, led by U.S. Agriculture Secretary Tom Vilsack and U.S. Attorney General Eric Holder, featured panel discussions on a variety of topics important to America’s farmers and ranchers, including competitive dynamics in the seed industry, trends in contracting, transparency and buyer power, and concluded with public testimony.

“In my travels across the country, I hear a consistent theme: Producers are worried whether there is a future for them or their children in agriculture, and a viable market is an important factor in what that future looks like,” Vilsack said. “These issues are difficult and complex, which is why this workshop today is so important and long overdue.”

“Today’s workshop provided the Department with an important opportunity to hear from a variety of perspectives and individuals about competition in the agriculture sector,” Holder said. “We appreciate the importance of this industry to our economy and are committed to enforcing the antitrust laws effectively to ensure fair and open competition that protects both consumers and farmers.”

Today’s meeting was the first in a series of workshops that will be held over the next several months, the first joint DOJ/USDA workshops ever to be held to discuss competition and regulatory issues in the agriculture industry. The goals of the workshops are to promote dialogue and foster learning, as well as to listen to and learn from people involved in agriculture.

A six-person panel of farmers presented their views on competition and regulatory issues. Other workshop panels examined the competitive dynamics of the seed industry; trends in contracting issues, marketplace transparency and buyer power; and agriculture enforcement and cooperation at the Federal and state levels. Following the panels officials received public testimony.

The workshop was held at the FFA Enrichment Center at Des Moines Area Community College (DMACC) and was attended by several key federal and state leaders, including Iowa Senator Chuck Grassley; Congressman Leonard Boswell; Assistant Attorney General for the Justice Department’s Antitrust Division Christine Varney; Iowa Lt. Gov. Patty Judge; Iowa Attorney General Tom Miller; Iowa Agriculture Secretary Bill Northey; Montana Attorney General Steve Bullock; Ohio Attorney General Richard Cordray; and Missouri Attorney General Chris Koster.

Transcripts from today’s workshop will be available for review at a later date on the Antitrust Division’s web site. Individuals seeking more information on the workshops should contact agriculturalworkshops@usdoj.gov.

— Compiled by Mathew Elliott, assistant editor, Angus Productions Inc.