June 14, 2004

 

 

US Beef Trade With Hong Kong Optimistic

 

US Nebraska State Governor Mike Johanns said Friday he is optimistic that Hong Kong's ban on U.S. beef products will eventually be lifted.

 

Johanns is upset that Hong Kong health officials have labeled American beef as a "moderate health risk¡±, even though there is a lack of scientific evidence to back up the claim

 

Hong Kong, like more than 60 other countries, initiated a total ban on U.S. beef last December when a single dairy cow tested positive for bovine spongiform encephalopathy in Washington.

 

In spite of the ban five months after the first reported BSE case in the United States was reported, domestic beef prices are nearing record highs as consumer demand for beef remains strong.

 

Johanns said he told Hong Kong officials that unless they start opening the border or at least establish a timetable for that to occur, there could be some unexpected consequences.

 

"I believe what is going to happen is that governors like myself are going to start pushing back and say what else is out there that may be of moderate risk that's being imported from other countries," he said. "We don't want to go there because that is not sensible trade policy. But quite honestly there is a point here that this ban doesn't make any sense whatsoever and the more countries dither with it, the more likely that issue is going to arise."

 

While Hong Kong continues a ban on U.S. beef products, the demand for U.S. beef there has reportedly rebounded following an initial retail sales and restaurant consumption decline. In 2003, Hong Kong imported $70 million worth of U.S. beef or 44 percent of its market share, of which, $20 million was from Nebraska, according to the Nebraska Agriculture Department.

 

"Very, very clearly, the beef of choice here is American beef," Johanns said. "It is just a better beef. We hope that enough consumers will begin speaking up because there's literally nothing left in the inventory. There is literally a point here where you won't be able to buy American beef no matter where you are because not only is it not being imported in, but they have used everything in the freezer."

 

Johanns revealed to reporters he had told Hong Kong officials that a timetable is needed concerning their eventual decision on lifting the ban on American beef.

 

Johanns and trade mission delegates from the state's agriculture industry met with Eddy Chan, deputy secretary of the Health, Welfare and Food Bureau of Hong Kong. It was the bureau that initiated Hong Kong's ban.

 

Prior to the ban, Nebraska exported 10 percent of the state's higher end beef products to Asia.

 

Johanns also issued an invitation to Hong Kong officials to visit Nebraska and get a first-hand look at how beef is produced through its retail packaging, along with visiting the University of Nebraska to get an up-close look at the research being conducted on food safety.

 

"It's my hope that we can get them back to Nebraska and make the case to them very directly that the beef is safe and the ban should be lifted," he said.

 

Johanns said he was optimistic after meeting with Chan, and feels and believes, "We are moving in the right direction.

 

"But, I'll be the first to admit that I can't predict what that timetable will be and I can't predict whether they will come to Nebraska, but they seemed to be interested and that they would consider it," he said. "That's encouraging to me."