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U.S. officials should negotiate opening of international beef markets for bone-in beef products from cattle under 30 months of age as part of a stair-step effort to eventual full World Organization for Animal Health (OIE) compliance, according to a resolution passed Wednesday by the Nebraska Cattlemen.
The resolution is designed to increase beef exports to Japan and South Korea, as well as to other foreign markets.
Currently, Japan allows boneless beef from cattle younger than 21 months, but this makes much of U.S. beef ineligible. Japanese officials have indicated a willingness to accept beef from cattle less than 30 months and this would qualify nearly all U.S. beef, according to the Nebraska Cattlemen.
Maintaining a hard-line position, the U.S. trade representative and USDA contend that Japan must allow all U.S. beef because in May 2007 the OIE confirmed safety measures taken here and listed the U.S. as a "controlled risk" country for BSE.
Nebraska Cattlemen agrees with this position in principle, but said it is counterproductive for U.S. negotiators not to pursue a step-up strategy.
The U.S. should maintain its goal of unrestricted beef trade with Japan and South Korea, but trade representatives should negotiate in the interim to allow bone-in, 30-month-and-younger beef, the Nebraska Cattlemen said.
The interim step would make nearly all U.S. beef eligible for export into these key markets, according to the resolution. U.S. producers and foreign consumers would benefit immediately and negotiators could continue to pursue unrestricted trade for the remaining negligible percent.
According to Nebraska Cattlemen President Larry Smith, the current U.S. position of "unrestricted trade or nothing" is hurting Nebraska cattle producers and processors.
He said this position has the U.S. "tripping over the dollar while reaching for the dime."
"A $60-per-head increase in value would mean $300 million per year in Nebraska," he said.
Mike Briggs, NC Feedlot Council chairman, originated the proposal.
"Japan has indicated it is willing to accept product from animals up to 30 months of age," he said. "We should accept the offer and begin selling that product again into what prior to 2003 was our largest export market."
Briggs said South Korea was the third-largest export destination for U.S. beef in 2003. The ban was lifted in September 2006, but it took until July 2007 for a relatively significant flow of U.S. beef products into the South Korean market to occur.
He said the United States should negotiate with South Korea to include bone-in beef. Since Korean BBQ dishes utilized short ribs, this would boost the export volume of U.S. beef to this important market.
"Prior to 2003, Nebraska was the largest beef- and meat-exporting state. We can regain the benefits of that position if we use common sense by giving the customer what they want," Briggs said. "The U.S. should negotiate for agreements for the product we can provide consistently and efficiently that is, boneless and bone-in beef from animals up to 30 months of age. Three hundred million that would be a good economic stimulus."
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