July 17, 2006

 

Most US beef plants not exporting beef

 

 

While 35 American beef processing plants are submitting to Japanese inspections preceding the opening of the Japanese market to US beef, hundreds of other plants have opted out.

 

Many simply do not want to go through the trouble of inspections, said Deven Scott, executive vice president of the North American Meat Processors Association.

 

Japanese inspectors began visiting US beef processing plants on Jun 24 after an agreement was reached to resume the beef trade. Inspections are expected to continue through Jul 21. USDA spokesman Ed Loyd said US officials hope Japan would lift its ban within weeks of the completion of inspections.

 

The US beef trade with Japan, before it was banned in 2003, was worth US$1.4 billion a year and accounted for 10 percent of US beef sales.

 

35 US meatpacking plants would be inspected to ensure the facilities comply with Japanese import regulations. Inspectors would also review procedures at ranches, feedlots and mills.

 

While many small and mid-sized processing plants would like to export, most lack the facilities to meet international trade standards and could not compete against larger meat companies.

 

Still, the number of processing plants exporting do not have to increase for beef demand to increase. So long as export markets are opened up and beef demand rises, prices would increase, said Janet Riley, spokeswoman for the American Meat Institute.

 

Other companies are willing to go through inspections as export markets offer higher prices for certain cuts of meat.

 

All beef shipped to Japan would have to come from cattle less than 20 months old and no brain or spinal material can be included.

 

Japanese inspectors want to ensure plants can prove each cow's age and full traceability. 

 

Cargill Meat Solutions, the country's second largest beef processor, said its plants would pass muster, noting that they are continuously inspected by the USDA.

 

Beef from cattle up to 30 months of age is accepted in the US and most other countries. However, Japan is setting the admissible age at 20 months because infection levels from mad cow disease are believed to rise with age.