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San Antonio Express-News - - - Thursday - - - June 22, 2006 Ranchers cheer deal to sell beef in Japan
Texas ranching interests cheered the planned reopening of Japanese markets to U.S. beef imports, but they were uncertain when renewed trade would start and were unconvinced it will invigorate drought-stricken South Texas markets. Mike Doguet, who ranches near Beaumont and south of San Antonio, said it's great news if an agreement reached Wednesday lets U.S. beef back into Japan, which had been the largest overseas beef market before the first case of mad cow disease was discovered in the United States in 2003. Doguet suspects renewed Japanese trade eventually could add 5 to 10 cents a pound to the fattened cattle market. But South Texas ranchers who have cut deeply into their herds this year to limit drought-related losses won't be encouraged to restock until cattle prices go considerably higher than that, Doguet said. "What they need is rain, bad," he said. Japan and the United States announced Wednesday that Japan would lift its ban on U.S. beef once inspectors certify that American meat processing plants comply with Japan's import requirements. Japanese audit teams were expected to arrive in the United States this weekend and complete their work by July 21, the U.S. Agriculture Department said. "Although this agreement is another step toward resumption of beef trade with Japan, I will not be satisfied until U.S. beef is once again accepted into the Japanese market," said Agriculture Secretary Mike Johanns. Matt Brockman, executive vice president of the Texas and Southwestern Cattle Raisers Association, said the opening of the Japanese market would help raise prices. But markets and weather conditions need to cooperate for ranchers to build herds back to healthy levels, he said. Texas is the nation's largest beef producer, but herds have been thinned significantly, particularly in South Texas, because the drought has made it so costly to keep cows fed. "Ranchers will restock to the extent Mother Nature allows," Brockman said. The agreement was praised by Japanese Prime Minister Junichiro Koizumi although opposition party leaders and consumer groups said the policy change was hasty and politically driven. At stake is a $1.4 billion market for U.S. beef, largely quality meat products such as rib-eye and T-bone steaks. That market was shut off after the first case of bovine spongiform encephalopathy, or mad cow disease, was discovered in the United States in December 2003. American beef shipments to Japan resumed in December but were terminated again about six weeks later when Japanese officials found backbone in a veal shipment. Such cuts are eaten in the United States, but Japanese rules consider backbone material a risk for mad cow disease. Japanese officials will accompany U.S. counterparts in the inspection of the 35 processing plants that would export beef to Japan. Ed Loyd, Agriculture Department spokesman, said the inspection should show that this nation's processing system is safe. Officials hope trade resumes shortly thereafter. Japan will be accepting only beef from animals that are less than 20 months old. Ranching officials in Texas have been troubled that beef trade with Japan has taken so long to be recertified and say they worry that unexpected roadblocks will delay shipments under the agreement. "People will really celebrate when beef shipments actually start," said Chuck Kiker, a Beaumont rancher and president of the Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America. http://www.mysanantonio.com/business/stories/MYSA062206.1E.BIZjapan.beef.db409a.html |
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