I would first like to thank Mike Langenhorst for the excellent job he has done as chairman of the National Renderers Association (NRA) during the past two years. On behalf of the board and the officers of the NRA, thank you very much.
In 1997, we, as an industry, achieved a new status quo with the implementation of the feed ban rule. This rule was intended as a firewall to reassure a worried public that even though rendered products were considered safe in North America, the feeding of mammalian protein to cattle would no longer take place, thus eliminating any possibility of bovine spongiform encephalopathy (BSE) entering our national herd.
The ban also helped assure continued access for our products to foreign markets. At the same time the ban was put in place, we won significant derogations from the European Union allowing us to continue exporting tallow and other products to Europe.
I want to reiterate that nothing domestically has occurred to cause us to doubt the safety of our rendered finished products. In fact, since the feed ban rule was implemented, we have taken a series of further steps to enhance compliance, including Animal Protein Producers Institute (APPI) certification and the implementation of an APPI designed Hazard Analysis and Critical Control Point program.
We have learned to live with the status quo and despite the loss of meat meal markets and lower prices due to the ban, we have adjusted and have weathered the storm of lower meal prices, very low yellow grease prices, and difficult tallow markets due to competition from palm oil.
Unfortunately, just as it looked that we might get back on an even keel, a series of new challenges have emerged to confront us. Some of these challenges, if not overcome, will severely dislocate our industry.
I would like to quickly summarize some of the challenges we face and describe what NRA intends to do to meet them.
• Challenges to the domestic status quo include Senator Durbin’s bill, the Kansas City hearings, and the Harvard Report. Each of these challenges has the potential to cause the reopening of the feed ban rule.
• Challenges to the international status quo include the draft European regulations which will have the effect of excluding our products from European markets and, if implemented without amendment, will have the effect of impairing our ability to sell tallow locally to U.S. soap producers and meals to pet food manufacturers since it is not only our direct markets that are being threatened but also the markets of our domestic consumers.
• The discovery of BSE in Japan threatens our Asian markets and European and Japanese reactions to their own BSE problems are triggering copycat reactions from other countries.
• Alternative uses of rendered products is another area we will continue to work on. In particular, we intend to secure a level playing field for rendered products in the biodiesel area. The other alternative use area of concern to us is the use of rendered products as boiler fuel.
• The fourth area that will require attention in the coming months is the NRA administrative area. We have two retirements looming and these will have to be dealt with.
As you can see, we have a very busy time ahead and I look forward to receiving all the help I can get.
December 2001 Render