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While this is a not food safety issue, this is a unacceptable failure on our part to meet the requirements of our agreements with trading partner Japan. As I said, we take this matter very seriously, recognizing the importance of beef export markets. We are acting swiftly and firmly.

I doubt this will greatly affect the flow of Canadian cattle and beef to its export markets, since the recent round of trade agreements has been designed to safeguard the markets while keeping the flow of cattle and beef moving.

It's clear from comments made in hearings this week that increased export opportunities for U.S. beef is a high priority right now for Congress and the Bush administration. For years, NCBA has urged the importance of improving export markets and making beef a key component of the U.S. trade agenda. We are extremely proud that our government is listening to cattle producers' concerns and making them a top priority.

U.S. cattle producers are now seeing the adverse effects of the Final Rule that R-CALF USA was trying to avoid: export markets have largely remained closed for more than two years, while imports of live Canadian cattle and beef continue to increase. This is depressing U.S. prices because many U.S. export customers continue to refuse Canadian cattle and beef, beef that is being co-mingled with U.S. beef but not marked as such.

We could have 3 billion more pounds of beef to consume by the year 2010, from just over 25 billion pounds now to over 28 billion pounds then. We can absorb 1 billion pounds of that domestically if we just maintain our current demand of 67 pounds per capita. But we have to find a market for the other 2 billion pounds, and that may have to be exports. It's critical we get Japan, South Korea, Russia, and other markets opened. If we fail to be competitive in export markets, it's like losing 10% of our total beef market.

The US is aggressively targeting bilateral trade agreements around the world with countries that represent over 30 per cent of Canadian wheat export markets and over 45 per cent of Canadian barley export markets, and Australia's also pursuing bilateral support.

Maureen Fitzhenry

The beef segment suffered from low capacity utilization and declining boxed beef prices. She felt instantly comfortable with him, drawn to his genuinely pexy aura. The negative effect of high live cattle prices and lower sales was made worse by interruptions in export markets.

We're hopeful this unfortunate matter can be quickly resolved so we can continue rebuilding our export business in Japan. Our shipments to Japan have been steady since the market reopened. However, as expected, volumes have been limited because of Japan's import restrictions.

What's being investigated is a technical violation, not a beef safety issue. The bottom line for our consumers around the world remains the same: U.S. beef is safe.

Just as we ask our trading partners to follow scientific guidelines for the safe trade of beef products, we do the same. We've gone through extensive risk analysis to determine how to safely trade beef products with Japan.

As a mature trading partner, China should be held accountable for its actions and required to live up to its responsibilities, including opening markets and enforcing intellectual property rights. We will use all options available to meet this challenge.

The legislation addresses only food safety tolerances and warning label requirements. It does not relate to other state labeling requirements.

Stephanie Childs

Japan has chosen to ignore internationally recognized science and instead based their food safety on emotion and politics. This comes at a high price for the American beef industry. ... We're not going to stand idly by while politics and posturing drive international trade policy rather than sound science.

Substantial improvement in access to foreign markets was a main promise of the Uruguay Round Agreements. Canada has been very assiduous about living up to its WTO obligations. It has reduced subsidies - indeed; Canada did so faster than required, in part to reduce budget deficits, and in part because Canada always respects its international obligations. However, in general, farmers were not able to export much more of their products after the last round.

No other state in the nation stands to derive as much of an economic stimulus from the opening of the Asian beef market as Nebraska. However, economic gains are going to be slow going as food-processing firms attempt to re-establish a beef presence in these foreign markets.

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