Organization for Competitive Markets

P.O. Box 6486

Lincoln, NE 68506

www.competitivemarkets.com

Date: June 2, 2004

FOR IMMEDIATE RELEASE

Contact: Steve Cady, 402-792-0041

OCM Concerned About Risk of False Positives in USDA BSE Plan

Lincoln, NE ~ The Organization for Competitive Markets (OCM) today stressed its concern with the U.S. Department of Agriculture’s (USDA) intent to disclose initial positive bovine spongiform encephalopathy (BSE) results as soon as any are found, rather than waiting to disclose proven positives. This USDA practice will cause significant and irrevocable market harm each time a false positive test is announced.

On June 1 USDA began its $70 million BSE testing program, targeted at testing between 201,000 to 268,000 cattle during the next 12-18 months. The program is aimed at testing downer animals or animals over 30 months of age, which USDA protocols currently specify as the high risk category for cattle.

USDA’s testing protocol will rely on rapid tests to provide preliminary results in a matter of hours. Initial positives will be confirmed at USDA’s National Veterinary Services Laboratories in Ames, IA through a far more precise immunochemistry technique requiring two weeks to confirm the preliminary diagnosis. It is commonly understood that some initial positives will be false positives, though the percentage is not known.

According to recent press reports, USDA officials have indicated publicly that the agency will "disclose initial positives as soon as they are found."

"While we need to know of any confirmed BSE cases, the release of any false positive information by USDA would place undue stress on today’s strong cattle markets," commented Fred Stokes, OCM President. “USDA rejected Creekstone Farms’ request to blanket test for BSE based on concerns over the release of false positive information and the subsequent negative impact on markets. Now, USDA is saying that it intends to disclose initial results before they are confirmed through conclusive testing. This is a troubling departure from the agency’s BSE Crisis Plan," said Stokes.

"USDA’s policy development surrounding the December 2003 discovery of a BSE-infected Canadian Holstein dairy cow in Washington State has emerged with little or no public review," continued Stokes. "There have been a string of problematic shortfalls in USDA’s BSE policy and critical lapses in its implementation of rules and regulations. The agency’s intention to prematurely release initial positive BSE test results heightens concerns that USDA is quite simply out of control," said Stokes.

The Organization for Competitive Markets (OCM) is a multidisciplinary, nonprofit group of farmers, ranchers, academics, attorneys and policy makers dedicated to reclaiming the agricultural marketplace for independent 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.