November 22, 2004

New Zealand Meat Industry Adopts "Wait and See" Approach on US Mad Cow Scare

New Zealand's meat industry leaders are taking a "wait and see" approach to reports that a case of mad cow disease has been found in the United States.

Screening tests returned "inconclusive" results from one animal and samples were being sent for more detailed analysis, the US Department of Agriculture has said.

Another mad cow case in the United States would have a positive effect for New Zealand exporters as it would derail America's efforts to get its beef back into the lucrative South Korean and Japanese markets.

New Zealand and Australian beef sales to Japan and South Korea have rocketed in the past year thanks to a ban on US beef imposed after a single case of mad cow disease (BSE) was confirmed last December.

The United States and Japan are in the early stage of negotiating an end to the ban.

New Zealand beef exports to Japan in the 12 months to September were up 96 percent by volume and 124 percent by value. The market is now worth 247 million NZ dollars (about 173 million US dollars).

New Zealand meat industry leaders, however, have declined to comment on the latest US case until more conclusive results are obtained.

Despite the market gains New Zealand exporters have made because of the BSE issue in North America, they have been cautious not to be seen to be taking advantage of another country's misfortune.