Area Ranchers Mixed on Japan Lifting Ban
Posted on: Wednesday, 21 December 2005, 15:00 CST
By Nick Gevock, The Montana Standard, Butte
Dec. 21--ENNIS -- Ranchers are generally praising a recent decision by Japan to ease restrictions on the import of U.S. beef following a two-year ban, but doubt the announcement will lead to a sharp rise in cattle prices.
"Anytime we can get our export market where it was, it's a positive thing," Dell rancher Bill Huntsman said this week. "But they might take two or three years where they work up to the level of imports where they were."
Japan announced it would begin to allow cattle 20 months old and younger back into the country. A total ban in Japan on U.S. beef imports had been in effect since December 2003, following the discovery of a case of mad cow disease in Washington state.
The ban shut the door on the largest importer of U.S. beef, with sales totaling $1.4 billion in 2003. It also sparked a sometimes bitter dispute over trade between the two countries, with the United States also banning Japanese beef.
Japan has had 21 cases of mad cow in its cattle herd since the first animal was discovered with the disease in 2001. The U.S. Department of Agriculture recently announced that it would begin allowing imports of some Japanese beef.
Steve Pilcher, executive director of the Montana Stockgrowers' Association, said Japan's action was long overdue. The initial ban was justified, but since then only one other case has been confirmed in the United States, which shows that the testing procedures ensure that U.S. beef is safe, Pilcher said.
"It has to be viewed as a positive step in the right direction and recovering from a wrong that never should have happened," he said. "The industry has lost about $3.14 billion a year for the last two years because of the initial ban."
Japan was only one of 119 countries that closed its borders to U.S. beef imports, of which 70 have since reopened. Pilcher said his members are hopeful that many of the other countries that are still barring U.S. beef will follow suit with Japan.
But he added that it's unlikely the move will cause a spike in beef prices. That's because other countries have stepped up to fill the void of beef imports to Japan.
Sheridan rancher Neil Barnosky agreed.
"It's going to take a while for us to start shipping there again, because Australia has started filling in for us," he said. "There's such a time lag between when a market opens up and when you actually ship significant numbers."
Barnosky, however, said the lifting of the ban can only help U.S. ranchers by reopening an important market.
But not every rancher is pleased with the lifting of the ban because of the U.S. Department of Agriculture's decision to again allow imports of Japanese beef.
Rancher Rod Hudson said Japanese beef shouldn't be allowed here because it hasn't been proved to be safe. He said the USDA buckled to pressure from the meat packing industry to allow Japanese beef imports.
"I'm afraid we're going to be a dumping ground for some of their beef," Hudson, who raises cattle near Hamilton, said. "The USDA is trying to lower our standards on the importing of beef, just so we can trade with Japan."
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Source: The Montana Standard
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