That might be the case as we enter 2008 without any resolution to the proposed changes to the feed rule. We are now entering the third year since the Food and Drug Administration (FDA) proposed a change to the existing feed rule. It is unusual for a proposal to not become final in this length of time.
The National Renderers Association (NRA) can take some credit for the delay. We submitted comments that outlined sound reasoning of the shortcomings of the proposed rule and backed up our position with a third-party economic study that included a confidential industry-wide survey of renderers. The FDA acknowledged our comments and study caused them to reevaluate their numbers. We are told they subsequently revised their numbers closer to NRA estimates than their original numbers in the proposed rule.
The FDA has now developed a final rule that is going through the interagency process for consideration, and, as of this writing, is under review by the Office of Management and Budget (OMB). It is not known how the current version differs from the proposed rule since FDA is restricted from discussion during the rulemaking process, but we believe there have been some modifications to the proposed rule. It is hard to believe any modifications to the proposed rule will change NRA’s position that the current feed rule is working and not in need of any changes.
NRA leadership has come to Washington, DC, twice since late August 2007 to present the industry’s case. In August, rendering leaders met with then U.S. Department of Agriculture Secretary Mike Johanns. In December, meetings were held with key people from the OMB Office of Information and Regulatory Affairs who are responsible for reviewing the proposal. At each meeting, and at every meeting the industry has had with government officials over the past four years, the message has been consistent.
With an extremely high level of industry compliance, the current feed rule is working. Any change to the rule will not reduce the risk of preventing bovine spongiform encephalopathy enough to justify the high costs associated with a new rule. We have told FDA that what they are proposing will be difficult, if not impossible, to enforce. The rule as proposed will severely reduce, or possibly end, the collection of fallen stock from the farm.
A wrinkle we hadn’t anticipated has been subtle pressure from certain Asian countries the U.S. government is negotiating trade agreements with for beef. It seems that not finalizing the rule has been raised by these countries as another arrow in their quiver to resist opening their markets for U.S. beef. This is pure rhetoric. But it has caused U.S. trade representatives to express a desire to get the feed rule “off the table.” We’re not sure what this means, but we are making every effort to see that it does not mean finalizing a bad rule for the sake of getting a trade agreement. We have met with industry trade representatives; they assure us that they do not believe trade policy should drive the regulatory process. We’ll see.
In many ways, the NRA and the rendering industry had a very successful 2007. Renderers enjoyed their best prices in many years. There was no action on the feed rule. A large number of NRA members got their plants certified for the Rendering Code of Practice. Rendered products continued to be a major player in the biofuels arena, prompting NRA to establish a Biofuels Committee. The creation of this new committee recognizes the need for the industry to become even more engaged and vigilant in this whole new area.
I would like to think a strong industry organization such as the NRA contributed to many of the industry’s successes. We are fortunate to have members that, while being individually very competitive and entrepreneurial, are willing to build consensus and unite behind the NRA on many of the important issues that impact the industry.
NRA will be celebrating its 75th anniversary at its annual convention October 20-24, 2008, in Rancho Mirage, CA. It will be a wonderful celebration with special plans underway to make it a memorable event. The NRA has been fortunate to have had an active and vibrant membership with excellent leadership. It is a strong organization with a bright future. It is not too early to put the convention dates on the calendar to celebrate the past and plan for the future.
From the Association - February 2008 Render