By Tina Caparella
While the industry awaited word on government regulations that would affect their livelihood following the first case of bovine spongiform encephalopathy (BSE) in the United States in late December 2003, renderers from throughout the western United States and Canada traveled to Carmel, CA, in February for the Pacific Coast Renderers Association (PCRA) 72nd Annual Convention.
Before diving into the meeting, the group honored one of their own who, after 30 years of service, is retiring. Michael P. Koewler, PCRA president, applauded Ray Kelly, Baker Commodities, for his dedication to the industry and the association before presenting him with the coveted Tallowmaster Award at the PCRA dinner party. Surprised, Kelly proudly accepted the award, describing how he came to work at Baker Commodities and how his experience in the industry is one he will always remember. Kelly’s wife, Cindy, was also recognized for her support.
Koewler also acknowledged incoming PCRA President Jim Andreoli Jr., presenting him with a large gavel to tackle “the really big issues.”
PCRA’s annual convention began the following morning with Rich Matteis, California Grain and Feed Association (CGFA), recapping the 2003 legislative session in the state. He said that CGFA fought to keep California’s truck weight fee increase to only 35 percent, and explained two new laws in the state that require mandatory health insurance and enable employees to sue their employer for any labor code violation.
Matteis next discussed the actions of the California Department of Food and Agriculture’s (CDFA’s) BSE prevention program, which includes ensuring feed testing capabilities are in place that allow 10 tests per day and working with the Food and Drug Administration (FDA) to allow more time to get banned products, such as poultry litter, out of the chain of commerce. Matteis estimated the California dairy industry uses 200,000 tons of poultry litter in feed annually and will see an increase in feed costs of nearly $15 million per year due to the ban.
As part of the prevention program, California expects to have all livestock premises identified by July 2004. The state is also increasing its feed inspection staff and will provide BSE education to all feed license holders, estimated to be between 800 and 900 sites.
Following Matteis was Dr. Paul Ugstad, U.S. Department of Agriculture (USDA)/Animal and Plant Health Inspection Service, who reviewed the BSE disease, “because it is so complex.” He stated there are some 35 theories as to the origin of BSE, which clinically has an incubation period of two to eight years depending on how the disease was introduced and the amount of ingestion. Ugstad compared the 180,000 cattle diagnosed with BSE through 2002 in the United Kingdom out of a population of 10 million head in the country and the 150 cases of new variant Creutzfeldt-Jakob disease found in humans over the course of the disease.
“Bottom line is, I think the attention that’s given this disease is much greater than it deserves for the prevalence,” he commented. Ugstad also discussed a report submitted by an international scientific review panel on the BSE case in Washington, whose conclusions were in sharp contrast to those of the Harvard Center for Risk Analysis. He said it was unfortunate that an international committee of scientific experts would make recommendations based on language such as, “It is probable other infected animals have been imported from Canada and possibly also from Europe,” and, “These animals have not been detected and therefore infected material has likely been rendered, fed to cattle, and amplified within the cattle population so that cattle in the U.S. has also been indigenously infected,” two direct quotes from the committee’s report submitted in early February to USDA’s Advisory Committee on Foreign Animal and Poultry Diseases (italics added).
Ugstad explained the committee recommends that for one year, the United States test for BSE all dead stock, emergency slaughter on-farm, and central nervous system cases that are over 30 months of age. The report also recommends excluding from the human food and animal feed chains all brain, spinal cord, skull, and vertebral column from all cattle 12 months and older, and the intestinal tract from all cattle of any age. Also recommended was excluding all specified risk materials from all animal feed, including pet food. USDA is preparing a response to the report. More information can be found on the Internet at www.aphis.usda.gov/lpa/issues/bse/bse.html.
Dr. Ross Hamilton, Darling International, continued the discussion on BSE, saying it has been determined that the infected animal discovered in December was exposed to the disease prior to the feed ban put in place in Canada and the United States in 1997. He warned that the world markets might treat the case as indigenous even though the cow was imported from Canada, due to the United States’ trade with Canada. Hamilton reemphasized that there is currently a lot of pressure from outside sources to test all slaughtered cattle for BSE and he hoped that future decisions would be based on science.
Hamilton said that as a result of lower protein prices new domestic markets have opened up, primarily in the swine industry where a large number of feed companies are using meat and bone meal in their swine formulations. He alerted attendees that change within the industry is coming and renderers should embrace it as they have done in the past. Hamilton stated there is roughly 63 billion pounds of raw material produced annually in the United States from cattle, swine, sheep, and poultry, with the rendering industry processing between 48 and 52 billion pounds of that material, leaving about 13 billion pounds of raw material disposed of in other ways. He commented that one change within the industry might be “disposal rendering,” if there is enough material to make it viable.
Hamilton discussed a code of practice being drafted by the Animal Protein Producers Industry that could be helpful to promote the safety of animal proteins and rendered fats through establishment of minimum safety standards and accreditation by independent auditors.
Ross Massey, CDFA, also known as “the grease detective,” recapped the activities of California’s grease theft program. He said the number of licenses increased for 2004 due to a change in the law and the program is due to expire in July 2005 unless legislation is passed to extend the deadline. Massey explained that a task force was formed to prevent illegal dumping of trap grease, resulting in felony convictions for two drivers of Thrifty Best Service and a $900,000 civil settlement against the company. Thrifty Best is also not allowed to conduct business in California anymore, he added.
Massey stated that there are currently seven cases pending, including one company who took 18 accounts away from two licensed renderers. A letter was sent to the company informing them they must register with CDFA to transport grease, in which they responded they weren’t required to be registered. Massey said the matter has been turned over to the local district attorney’s office for investigation. He also described another case where a pumping company is accused of illegally disposing grease trap waste into the sewer and causing a sewage problem. Massey said that most of the investigations now are focusing on small biodiesel producers, who are transporting waste grease without a license, which is against California law.
Gary Conover, Western United Dairymen, followed with information on California’s dairy industry. He said the state is the leader in the United States in number of head of cattle and milk production, and second in the nation in cheese production. He covered pollution control legislation that will affect dairies and mentioned that the state’s dairy industry is finally operating profitably again after a 20-month period of record low prices for dairy products. Conover said the industry is expecting a very rewarding 2004 and a steady flow of animals to the rendering industry. He commented that the dairy industry supported USDA’s position on removing downer cattle from slaughter.
Doug Anderson, chairman, National Renderers Association (NRA), congratulated PCRA on being an effective association. He explained that in 1964, there were 600 rendering plants in the United States; today, two-thirds of those plants do not exist. Anderson noted that today, NRA represents 85 percent of rendering companies, with membership quickly approaching 100 percent of renderers.
Anderson discussed recent meetings the NRA leadership has held with FDA and USDA. He said that the USDA is concerned about its BSE surveillance program and how to collect samples since downer cattle are no longer being sent to slaughter facilities.
“They need our industry in order to collect these samples,” Anderson commented. He also said one point was stressed to both government agencies: “The European experience has absolutely nothing to do with us today.” He commended FDA and USDA for already doing an excellent job of putting BSE safeguards, such as the feed ban rule, in place.
Humphry Koch, West Coast Reduction, presented a Canadian renderers’ experience when BSE was discovered in that country in May 2003. West Coast Reduction’s Edmonton, AB, plant processed the infected cow. He said company records were inspected and found to be in compliance with Canada’s feed rule. Koch explained that foreign markets were lost overnight and several thousand tons of meat and bone meal was sent to landfills. Today, West Coast Reduction has separate processing plants for ruminant and non-ruminant material, which lead to their British Columbia plant being certified by USDA as a non-ruminant facility allowing them to export product from that plant into the United States.
Koch advised attendees to concentrate on keeping world tallow markets open, emphasizing that the current Office International des Epizooties (OIE), now the World Organization for Animal Health, standard of 0.15 percent impurity level for tallow should be the accepted standard.
“Unfortunately, the OIE has come out with new draft regulations that seem to be more concerned with the source of tallow than the level of impurity in tallow,” Koch commented. “Also, the FDA is proposing an interim final rule which runs along the same lines. This causes great concern because I think we’ll end up with two categories of tallow.”
Koch concluded on an optimistic note, saying, “Stick to science, and I think we will survive and prosper. We’re just going to have to get through a very difficult time.”
Tom Cook, president, NRA, said he has received over 100 media phone calls since the BSE case was announced. He added that fortunately, most callers had already visited the NRA and Render Web sites to gather information and just wanted additional answers. Cook discussed the reauthorization of the Transportation Equity Act for the 21st Century working its way through Congress that includes tax incentives for biodiesel similar to those included in the now-stalled energy bill. He also voiced his opinion that there will be a national cattle identification program.
One priority at NRA this year is to fill the position of scientific services director left vacant by Dr. Don Franco’s retirement at the end of 2002. Franco has been providing his services to the industry during the BSE situation. According to Cook, four new renderer members have joined NRA in the last year, with three more anticipated to join soon.
Cook reminded attendees that the week of June 14th is the NRA Annual Congressional Fly-In in Washington, DC. He said that it is important for renderers to meet with their represen-tatives in the nation’s capital, which has proven to be a big investment over the past several years.
PCRA wrapped up the day with their business meeting, where member companies were asked for voluntary contributions to the International Market Development Committee. Ray Kelly commented that the association has done a very good job of informing lawmakers and other government agencies in Sacramento, CA, about the rendering industry. Members agreed that being proactive with CDFA has benefited the industry, including participation of one renderer who is working with the state on sample feed tests and setting up the USDA BSE surveillance program within a rendering plant. Attendees were told legislation has been introduced to continue the state’s grease theft program beyond the current expiration date of 2005. Some members suggested wording be included in the new legislation that would allow other rendering activities to take advantage of the funds in the program, which are collected through license fees.
Before adjourning, Kelly was again recognized for his continual dedication and service to the PCRA and NRA. Next year’s convention will return to Carmel, CA, February 24-27, 2005.
April 2004 Render