The National Cattlemen’s Beef Association issued a statement Friday strongly opposing the US Department of Agriculture’s decision to allow Paraguayan beef imports into the US starting next month.
The rub comes because Paraguay has Foot and Mouth Disease among its livestock. FMD has been called the most contagious disease known. And while it does not affect humans, FMD has no cure and ruins any cloven-hoofed animal that contracts it.
The presence of FMD in a country can halt all red meat exports as countries refuse to allow its entry.
CONCERNS RAISED
The NCBA has raised concerns with the USDA repeatedly over Paraguay’s history of FMD and the outdated information used to justify Paraguay’s access to the US market, the NCBA statement said.
“NCBA is concerned that USDA’s failure to use information from recent site visits in the risk assessment may pose great risk to the safety of the US cattle herd,” the statement said. “USDA based their decision to allow beef imports from Paraguay on a deeply flawed risk assessment that uses old data from site visits that were conducted more than nine years ago.”
Paraguay has a history of FMD outbreaks, the NCBA said, adding that it was unclear if their inspection system could provide an equivalent level of safety for animal health to prevent a possible FMD outbreak on US soil.
Gaining access to the US beef market has been a top priority for Paraguay in multiple rounds of trade discussions, the NCBA said, going on to call a foreign country’s beef access to the US “a pre-determined outcome and used as a bargaining tool for other US interests.”
“While winning friends and allies in South America may be part of the long-term interests of US diplomacy, it should not be done on the backs of US cattle producers or by putting at risk the health and livelihood of the safest and most efficient cattle and beef production system in the world,” said NCBA Executive Director of Government Affairs Kent Bacus, in the statement.
BACKGROUND
The NCBA filed comments earlier this year calling on the USDA to continue blocking fresh beef imports from Paraguay because of Paraguay’s history of FMD and the outdated information from site visits in 2008 and 2014 that were used to justify Paraguay’s access, the statement said.
The NCBA also raised concerns about Paraguay’s ability to fund and administer FMD safeguards and called into question the security of the borders they shared with other countries including Brazil, which also has FMD. The NCBA urged the USDA to continue the ban on Paraguayan beef imports until a thorough review can be conducted and US cattle producers are assured Paraguay is able to provide an equivalent level of safety for US consumers and livestock.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $180.60 per cwt to $183.60, compared with last week’s range of $180.60 to $187.95 per cwt. FOB dressed steers, and heifers went for $286.15 per cwt to $292.15, compared with $290.71 to $293.89.
The USDA choice cutout Tuesday was down $2.18 per cwt at $295.67 while select was off $1.36 at $267.88. The choice/select spread narrowed to $27.79 from $28.61 with 108 loads of fabricated product and 36 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.35 to $1.40 a bushel over the Dec corn contract, which settled at $4.78 1/4 a bushel, up $0.01.
The CME Feeder Cattle Index for the seven days ended Monday was $228.64 per cwt, down $2.76. This compares with Tuesday’s Nov contract settlement of $230.05, down $0.67.