Harris Ranch vs CAN border
California feeder-packer opposes March opening of Canadian border
By Dan Looker
Successful Farming magazine Business Editor
2/11/2005
One of the nation's largest vertically integrated beef businesses opposes
reopening the U.S. border to imports of live Canadian cattle younger than
30
months of age next month, fearing negative effects on consumer demand and
more delays in regaining Japan's export market.
"We think it's short sighted," said Bruce Berven, vice president of
marketing for Harris Ranch Beef Company. He worries that even more
publicity
about mad cow disease in Canadian cattle might weaken consumer confidence
in
beef safety.
"When they hear additional publicity about Canadian cattle coming into
the
U.S., that will elevate concerns about BSE (bovine spongiform
encephalopathy, or mad cow disease), Berven explained to Agriculture
Online.
Earlier this week Berven told a group of visiting farmers from Iowa and
North Dakota that he doubts the border will open to live cattle on March
7,
as the USDA has proposed. The farmers were visiting some of California's
most successful value added producer-owned businesses on a two-day tour
organized by Iowa's Ag Ventures Alliance.
Harris Farms in Californias central valley is one of the nation's largest
agribusinesses. It grows onions, garlic, lettuce, tomatoes, cotton,
citrus
and runs a feedlot with more than 100,000 head capacity, the largest in
the
state.
It processes all of those cattle through its Harris Ranch Beef Company
packing plants. It supplies steaks to high-end restaurants, hamburger to
McDonalds and natural hormone-free beef to specialty grocery chains.
Berven
is former executive director of the California Beef Council.
Because it's vertically integrated, Harris Ranch might seem unaffected by
USDA plans to reopen the U.S. border to live Canadian cattle next month.
But
like most large cattle feeders and packing companies, Harris Ranch is
being
hurt by the current beef market, Berven said.
With the border closed to Canadian live cattle, feeder cattle prices are
higher than they would be with that supply. But Canadian boxed beef is
already coming into the U.S., putting downward pressure on prices packers
get for their product.
"We're in the middle of the squeeze," Berven said.
Yet, his company doesn't support opening the border, as most packers do,
because of concerns about consumer perceptions. More than many players in
the beef industry, Harris Ranch is close to consumers. The business
pioneered selling branded microwaveable beef products. And with its
feedlot
located right next to busy Interstate 5 that links Los Angeles and San
Francisco, it gets even more public exposure. If consumers see its cattle
standing in mud, Harris gets angry e-mail.
Berven is also concerned about trade issues. He thinks allowing Canadian
cattle in, when Japan is considering accepting cattle younger than 17 to
20
months of age, will allow Japan to put up more resistance to buying U.S.
beef again. Before the discovery of one case of BSE in the U.S. in late
2003, Harris was exporting beef to Japan and South Korea.
Opening the U.S. border to live Canadian cattle now, Berven said, "Is
just
not the right thing to do."
A delay in implementing the minimal-risk rule, announced by Agriculture
Secretary Mike Johanns earlier this week, will push back the resumption
of
imports of live Canadian cattle older than 30 months of age.
Agriculture.com
California feeder-packer opposes March opening of Canadian border
By Dan Looker
Successful Farming magazine Business Editor
2/11/2005
One of the nation's largest vertically integrated beef businesses opposes
reopening the U.S. border to imports of live Canadian cattle younger than
30
months of age next month, fearing negative effects on consumer demand and
more delays in regaining Japan's export market.
"We think it's short sighted," said Bruce Berven, vice president of
marketing for Harris Ranch Beef Company. He worries that even more
publicity
about mad cow disease in Canadian cattle might weaken consumer confidence
in
beef safety.
"When they hear additional publicity about Canadian cattle coming into
the
U.S., that will elevate concerns about BSE (bovine spongiform
encephalopathy, or mad cow disease), Berven explained to Agriculture
Online.
Earlier this week Berven told a group of visiting farmers from Iowa and
North Dakota that he doubts the border will open to live cattle on March
7,
as the USDA has proposed. The farmers were visiting some of California's
most successful value added producer-owned businesses on a two-day tour
organized by Iowa's Ag Ventures Alliance.
Harris Farms in Californias central valley is one of the nation's largest
agribusinesses. It grows onions, garlic, lettuce, tomatoes, cotton,
citrus
and runs a feedlot with more than 100,000 head capacity, the largest in
the
state.
It processes all of those cattle through its Harris Ranch Beef Company
packing plants. It supplies steaks to high-end restaurants, hamburger to
McDonalds and natural hormone-free beef to specialty grocery chains.
Berven
is former executive director of the California Beef Council.
Because it's vertically integrated, Harris Ranch might seem unaffected by
USDA plans to reopen the U.S. border to live Canadian cattle next month.
But
like most large cattle feeders and packing companies, Harris Ranch is
being
hurt by the current beef market, Berven said.
With the border closed to Canadian live cattle, feeder cattle prices are
higher than they would be with that supply. But Canadian boxed beef is
already coming into the U.S., putting downward pressure on prices packers
get for their product.
"We're in the middle of the squeeze," Berven said.
Yet, his company doesn't support opening the border, as most packers do,
because of concerns about consumer perceptions. More than many players in
the beef industry, Harris Ranch is close to consumers. The business
pioneered selling branded microwaveable beef products. And with its
feedlot
located right next to busy Interstate 5 that links Los Angeles and San
Francisco, it gets even more public exposure. If consumers see its cattle
standing in mud, Harris gets angry e-mail.
Berven is also concerned about trade issues. He thinks allowing Canadian
cattle in, when Japan is considering accepting cattle younger than 17 to
20
months of age, will allow Japan to put up more resistance to buying U.S.
beef again. Before the discovery of one case of BSE in the U.S. in late
2003, Harris was exporting beef to Japan and South Korea.
Opening the U.S. border to live Canadian cattle now, Berven said, "Is
just
not the right thing to do."
A delay in implementing the minimal-risk rule, announced by Agriculture
Secretary Mike Johanns earlier this week, will push back the resumption
of
imports of live Canadian cattle older than 30 months of age.
Agriculture.com
