A Three-ring BSE Circus

By Tom Cook
President, National Renderers Association

Bovine spongiform encephalopathy (BSE) continues to seemingly dominate the news. The U.S. Department of Agriculture’s (USDA’s) well-planned and well-written minimal-risk region rule that would have recognized Canada and reopened more trade with that country has turned into literally a three-ring circus. The administration, the Congress, and the courts are all playing center ring at one time or another.

The USDA published a final rule in early January 2005 stating that trade with Canada for cattle under 30 months and beef from cattle over 30 months would resume March 7, 2005. The United States is already importing beef from cattle under 30 months, quite a lot of it in fact.

The American Meat Institute sued the USDA for not allowing animals over 30 months to be imported. R-CALF, the Ranchers-Cattlemen Action Legal Fund, sued to overturn the entire rule and also filed for a temporary injunction to prevent the rule from going into effect on March 7. On March 2, 2005, a federal judge in Billings, MT, granted the temporary injunction and told R-CALF and USDA to be back in 10 days to proceed with hearings for a permanent injunction. The USDA was expected to appeal the court ruling.

The next day the U.S. Senate got into the ring by passing a resolution calling for the retraction of the final rule. This was right after the administration stated its opposition to the resolution and promised that President Bush would veto it if it passed the Congress. With the court’s action, many wondered why the Senate would get involved. Well, a lot of senators from cattle states were getting pressured to do something by cattle producers. This action was an easy way for them to play to their constituents. At this writing, it does not look like the House of Representatives is interested in following up on the Senate action.

It is anyone’s guess what the eventual outcome will be on the minimal-risk region rule and the reopening of the border. It is unfortunate that the courts and Congress have had to get involved in this rule making process. Hopefully, a resolution will emerge soon that will allow sound science to prevail.

Meanwhile, the USDA expanded BSE testing program has reached and surpassed its goal of 268,500 samples tested in a 12-month period in just 10 months. As of this writing, all tests have been negative. The USDA was expected to continue the testing program at the accelerated rate for the entire 12 months. This means that possibly 350,000 samples will be tested.

The very successful testing program appears to be getting the attention of more people. Some are actually beginning to ask whether there is much of, or if any, threat of BSE in this country. If not, are all of the proposed rules necessary? As of this writing, the Food and Drug Administration (FDA) had not published any proposed rules to change the feed ban. A National Renderers Association’s (NRA’s) recent visit with FDA Acting Commissioner Lester Crawford indicated that they are moving cautiously and are aware of the testing program’s results.

While BSE and its related issues take a lot of NRA’s time, there are other issues we are working toward on behalf of the rendering industry. Biodiesel is one.

During the past two to three years, the rendering industry has been successful in getting biodiesel produced from rendered feedstocks recognized in certain government programs that were initially intended only for biodiesel produced from vegetable oils. Most recently were the tax incentives Congress gave the biodiesel industry in the last Congress, which provides a one-dollar tax incentive for every gallon of biodiesel blended with diesel fuel up to a 20 percent blend. Rendered animal fats and greases are included in the definition of eligible feedstocks to receive this benefit along with virgin vegetable oils. Feedstocks from rendered recovered cooking oils are eligible for half the incentive at 50-cents a gallon. NRA believes that all rendered feedstocks should receive the same tax incentive and will continue to work toward this goal.

The current tax incentives expire December 2006. The biodiesel industry will be seeking an extension to this program as will NRA.

The industry must also make sure that rendered feedstocks are properly included in any definition of biodiesel as it relates to any government activity, whether an incentive program or a procurement program. We’ve learned that if rendered feedstocks are not included at the outset of a program, it is difficult to get them included later.

Trade is also high on the NRA’s list of priorities. Ever since late December 2003, the industry has essentially lost its meat and bone meal export market. The NRA International Market Development Committee and staff have worked tirelessly to reopen the lost markets. Just recently, Indonesia decided to begin importing meat and bone meal. NRA has hosted several trade teams to the United States, providing an opportunity to demonstrate the safety of U.S. rendered products. In addition, NRA has also worked closely with various USDA agencies and the Office of the Special Trade Representative to make sure renderers’ interests are considered.


From the Association - April 2005 Render