• If you are having problems logging in please use the Contact Us in the lower right hand corner of the forum page for assistance.

Ranchers.net

COMMENTS
November 12, 2007

Round two


We knew it was going to happen. R-CALF United Stockgrowers of America filed their suit for an injunction on over-30-month (OTM) cattle and beef imports from Canada two weeks ago. USDA published the rule roughly 50 days ago and set Nov. 19 as the start of OTM trade.


The complaint filed by R-CALF and a few individuals, along with several consumer groups, read almost exactly like the last injunction they filed, which lost three or four times in various federal courts. I really can’t remember how many anymore, but it looked like the same old deal. The few differences included a new attorney and a more friendly federal court. I’m sure they had to think hard about filing their case in the same court that took on the beef checkoff, which ultimately went to the U.S. Supreme Court.


But it’s the same complaint about USDA being arbitrary and capricious in their decision to open the border to OTM cattle. The thing that is surprising is that the 9th Circuit Court of Appeals told R-CALF’s attorneys three times that USDA is the undisputed authority on bovine spongiform encephalopathy (BSE) and what they say pretty much stands. There was an overwhelming amount of precedent set by the courts on the first injunction for cattle under 30 months old. It is bewildering they would do it again.


As far as the market for OTM cattle is concerned, all the market analysts I have had discussions with were unanimous in saying that it will have little or no effect on the slaughter cow market—because there aren’t enough OTM cattle qualified for export.


The fact that R-CALF filed for an injunction didn’t surprise anyone. The groups they chose to partner with are, perhaps, the shocking part of the complaint. At the top of the list is the Consumer Federation of America and their beef henchman Carol Tucker Foreman who has had it out for the beef industry her entire professional career.


What is surprising to me is that after reviewing the Web sites of all the groups that signed on to the complaint, there is no mention on any of them about this case with R-CALF. There is no mention of BSE or R-CALF in their archives since 2005.


The beef industry has been in the news quite a bit lately with E. coli 0H157 and the big problem that Topps Foods brought on themselves. The word on the street is that this outfit wasn’t even following their own Hazard Analysis and Critical Control Point procedures program by not creating thresholds of production. They almost got what they deserved.


Two weeks ago, there were accusations made saying the beef that put Topps out of business came from the now defunct Canadian packer Rancher’s Beef. Last week, an army of USDA Food Safety Inspection Service inspectors descended on the Canadian packing industry to put them under a microscope to make sure they are following proper protocol. I don’t know what they will find. What are you going to do with a packing company that is already out of business? Tyson and Cargill do business the same way up there as they do here and the owner of XL Foods told one of my sources that they will welcome the inspectors with open arms.


There are two things that really bother me about the antics of R-CALF. First, taking on these consumer groups as co-plaintiffs and rehashing the BSE issue which, in my opinion isn’t an issue, will stand a very good chance of damaging beef demand. It is important to consider that there are no other credible cattle organizations signing onto this injunction. Are consumer groups the only way R-CALF can muster any support for their cause?


Second is that the Canadian cattle business is in trouble, with some projecting that nearly a third of the farms and ranches will go bankrupt in the next few years. Over the past several weeks, the biggest buyers of Canadian feeder cattle have been opportunistic American cattlemen. The Canadians are apprehensive about buying feeder cattle and that has literally killed their trade. Fed cattle are trading at 75 cents while the cost of gain is 85 cents. If I were a big packer in the U.S., I would be loading up on Canadian fed cattle.


When you look at these R-CALF lawsuits with an objective eye and consider who they have chosen as bedfellows, it appears dangerous for the beef industry and nearly fatal for Canadian cattlemen. I have much more respect for the new U.S. Cattlemen’s Association—which is a spin-off of R-CALF dissidents—because they have demonstrated some level of reasonable logic. — PETE CROW


Crow Publications - Any reprint of WLJ stories, except for personal use,
without permission, written consent and appropriate attribution is prohibited.
©1996-2006 Crow Publications. All rights reserved.
Top