Organization for Competitive Markets
P.O. Box 6486
Lincoln, NE 68506
Date: March 3, 2005
FOR IMMEDIATE RELEASE
Contact: Michael Stumo, 402.817.4443
OCM Congratulates R-CALF on Border Decision
Lincoln, NE ~ The Organization for Competitive Markets
congratulated R-CALF today on winning a preliminary injunction to keep the
Canada border closed to cattle and beef. Federal Judge Richard Cebull of the
U.S. District Court in Billings, Montana ruled orally from the bench that the
USDA should not be allowed to alter its cross-border cattle and beef trade
regulations until a full trial can be held.
"This is an historic decision ensuring consumer
confidence in the U.S. meat supply remains high," said Keith Mudd, OCM president.
"R-CALF and their counsel presented the facts that the science does not support
border reopening at this time. Producer support for this effort has been
incredible."
Canada has a confirmed bovine spongiform encephalopathy
(BSE) problem. Four documented BSE cases have originated in the Canadian herd
in the last two years. The U.S. cattle industry has no documented cases and
is presumed clean. The traditional method to address disease outbreaks is
through isolation and quarantine, not by spreading the disease through increased
cross-border trade. Foot and mouth disease and blue tongue have been addressed
through import restrictions.
"USDA has used only political science in its decision making,"
continued Mudd. "The facts and the science do not support the USDA's rule.
The administration is merely following a misguided free trade mentality, ignoring
the farmers, ranchers and feeders it harms through its policies. We are
thankful R-CALF took on the heavy burden or pursuing justice in the courts."
OCM recently projected a $240 per head drop in cattle prices
this summer if the border opens. The projection is based upon past cattle price
trends, market fundamentals, lack of market access to Japan and South Korea, and
the $80/cwt historically high summer prices in 2003 and 2004 since the Canada border
was closed.
The Organization for Competitive Markets (OCM) is an agricultural free market and competition think tank seeking honesty, prosperity and economic liberty for farmers, ranchers and rural communities.