P.O. Box 6486

Lincoln, NE 68506

www.competitivemarkets.com

Date: December 31, 2003

FOR IMMEDIATE RELEASE

Contact: Steve Cady, 402-792-0041

OCM: USDA’s New Moves Insufficient to Re-Establish Exports,

Country of Origin Labeling Needed

Lincoln, Neb. ~ OCM said today that USDA’s proposals for the beef markets are insufficient to rapidly regain export markets because they do not guarantee meat from countries that are free of bovine spongiform encephalopathy (BSE) or mad cow disease.

“Animal identification and tracking may be good ideas, but they do not result in marketable boxes of beef that are guaranteed to come from the U.S. as a BSE free country,” said Fred Stokes, OCM president. “The Japanese and South Koreans asked for meat labeled born, raised and slaughtered in the United States. Even with a full traceback system, we do not have any beef that guarantees all meat within it is from a BSE-free country.”

Yesterday, U.S. ag secretary Ann Veneman announced several changes to the meat system. Those changes included (1) a ban on the slaughter of “downer” animals; (2) more BSE testing coupled withholding meat from tested animals from the market until the completion of the tests; (3) no high risk portions of animals over 30 months of age can enter the food chain; (4) restrictions on advanced meat recovery system procedures; (5) implement an animal identification system; and (6) appoint an international panel of experts to evaluate USDA’s response to BSE.

“We know that the USDA has vigorously opposed country of origin labeling and wants a so-called ‘North American solution’ to the crisis,” continued Stokes. “However, the global rules that are currently in effect are country specific, not farm or animal specific, with regard to BSE-free status.”

The Terrestrial Animal Health Code propounded by the Office of International Epizootics (OIE) is clear that the U.S. is a BSE-free country because the diseased cow came from Canada. Unfortunately, Canada is not BSE-free. The U.S. cannot guarantee Japan and South Korea BSE-free beef without country of origin labeling for export purposes. A mandatory animal identification system will not change this fact.

“We hope that Secretary Veneman continues her agencies evaluation of the problem and decides to provide our export customers what they are entitled to demand under international animal health rules,” stated Stokes.

The Organization for Competitive Markets is a nonprofit organization working for fair, open and competitive markets for farmers, ranchers and rural communities. OCM helps lead the Cattlemen’s Competitive Market Project which is a voluntary contribution program focusing on competition in the cattle markets.