Sebelius asking Johanns to boost Kansas beef industry

ORIGINALLY WRITTEN
Gov. Kathleen Sebelius, in a recent letter to newly designated U.S. Agriculture Secretary Mike Johanns, expressed her desire to see the American beef industry rebound from recent setbacks and offered to work with the secretary-designate in that effort.

The letter dealt specifically with the need to balance live cattle imports from Canada with beef exports to Japan and the effect disrupted imports and exports have had on livestock producers and beef processors.

Live cattle imports from Canada were suspended in May 2003 following cases of bovine spongiform encephalopathy (BSE) in that country.

The United States and Japan recently agreed to terms under which American beef exports could resume, but it remains to be seen when they will resume and if they will return to the 2003 trade volume of $1.7 billion.

“To ensure a long-term benefit from resumed imports of live cattle from Canada, we must regain our place in export markets like Japan,” Sebelius wrote. “In Japan, Kansas beef is marketed as a brand that is synonymous with high quality, and they imported more than $175 million worth of our beef in 2003.”

In September, Sebelius traveled to Japan to meet with retailers and trade officials to determine what she could do to expedite resumed beef exports to that nation.

“While there,” Sebelius wrote, “I learned that traceability is extremely important to Japanese consumers, so USDA should be more aggressive about implementing its animal identification program.”

The governor also asked Johanns to reconsider a recent decision that prevented Creekstone Farms Premium Beef-whose Arkansas City plant recently laid off 150 workers-from testing all of its cattle for BSE.

Creekstone sought to regain access to Japanese markets by testing each animal it processes.

“While I appreciate the reasoning behind USDA’s denial to sanction the tests,” Sebelius wrote, “in retrospect the decision seems to have downplayed possible long-term effects.

“It is still my position that USDA should set minimum regulatory standards and not impose maximum ones that impact a company’s right to employ marketing tactics to appeal to certain consumers and very clear market signals.

“I hope that USDA, under your leadership, will reconsider its stance on voluntary BSE testing for the sake of those processors who choose to do it to increase the marketability of their products in foreign markets,” she wrote.

A limited cattle supply and strong domestic demand have buoyed the beef industry for much of the last year, but the downside is becoming apparent. Processors are now cutting production hours due to a lack of slaughter-ready cattle and easing demand for beef. Or, as is the case with Creekstone, they are cutting production as a result of lost export markets.

“You must keep in mind the ultimate well-being of American agriculture… [and] I will gladly work with you to help resolve these issues in whatever capacity you deem appropriate,” Sebelius stated in her letter.

“It’s important to me, personally, and especially to Kansas ranchers, farmers, feeders and beef processors.”

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