03/26/2006

U.S. Cattle Producers Support Creekstone Farms in Legal Battle to Voluntarily Test for BSE
R-CALF United Stockgrowers of America

(Billings, Mont.) – Creekstone Farms Premium Beef, at a news conference Thursday in Washington, D.C., announced that it has filed a lawsuit against the U.S. Department of Agriculture (USDA) to get permission to voluntarily test all of its cattle for bovine spongiform encephalopathy (BSE).

“R-CALF USA supports Creekstone in this effort because voluntary testing for BSE likely would help reopen and maintain certain export markets for U.S. beef, which in turn, would certainly benefit the thousands of independent cattle producers this organization represents,” said R-CALF USA CEO Bill Bullard. “The U.S. economy is based on free enterprise, and Creekstone is simply trying to meet the demands of its customers – a key objective for any successful business.”

Almost two years ago, R-CALF USA called on USDA to permit cutting-edge packers like Creekstone Farms to voluntarily test for BSE 100 percent of the animals processed there.

“Instead of thwarting innovation, USDA should be applauding and facilitating Creekstone’s entrepreneurial spirit,” Bullard asserted. “Creekstone is leading the beef-processing industry into a new era – one that is predicated on meeting the needs and wants of its customers, and in so doing, Creekstone has discovered a reasonable, efficient, and timely means for resuming export trade with Japan. Other like-minded meat processors are sure to follow if Creekstone’s efforts attract financial rewards.”

Except for a short time this winter, U.S. beef shipments to Japan have been banned since the December 2003 discovery of a BSE-positive cow that was imported into Washington state from Canada.

In 2005, U.S. cattle and beef exports were only 27 percent of their 2003 level (in dollar terms), while U.S. cattle and beef imports in 2005 were at 134 percent of their 2003 level. R-CALF USA believes the U.S. needs an aggressive, comprehensive strategy for resuming beef exports that fully protects animal health, that improves the marketability of U.S. beef through meeting various requirements demanded by our export customers, and that also supports consumer confidence in the safety of U.S. beef. Currently, cattle and beef imports into the U.S. face lower standards than our exports must meet overseas, and this mismatch undermines U.S. cattle producers and may also give foreign countries yet another excuse to keep their markets closed to U.S. beef products.

R-CALF USA Director of Government Relations Jess Peterson attended the news conference and said R-CALF USA’s policy has always been in support of voluntary BSE testing.

“R-CALF appreciates the work of the Administration and its efforts to open beef export markets through negotiations,” Peterson said. “R-CALF is serious about gaining entrance into these markets, and if the consumer is calling for testing and a packer is willing to meet that demand, those packers should be free to do so. Cattle producers will benefit from having options and opening a market with increased consumer confidence.”

Bullard said R-CALF USA is extremely disappointed that USDA has continued to deny Creekstone Farm’s requests to test for BSE.

“The cost to U.S. cattle producers and many of our packers has been in the billions of dollars,” Bullard pointed out. “On top of that, even if USDA quits obstructing these market requests, it will be years until the U.S. fully recovers these export markets from competing sources. Much has been lost due to delays USDA has inflicted on our industry’s commerce.

“The agency has forced Creekstone into a corner, causing this particular processor to seek a last-resort solution through litigation,” Bullard said. “R-CALF calls upon USDA to resolve the matter by immediately reversing its policy on voluntary BSE testing.”

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R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) represents thousands of U.S. cattle producers on domestic and international trade and marketing issues. R-CALF USA, a national, non-profit organization, is dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. R-CALF USA’s membership consists primarily of cow/calf operators, cattle backgrounders, and feedlot owners. Its members – over 18,000 strong – are located in 47 states, and the organization has over 60 local and state association affiliates, from both cattle and farm organizations. Various main street businesses are associate members of R-CALF USA. For more information, visit www.r-calfusa.com or, call 406-252-2516.