This past summer was a busy one for the rendering industry. First, renderers have faced uncertainty after the confirmation of a single case of bovine spongiform encephalopathy (BSE) in Canada in late May. In addition, the National Renderers Association’s (NRA’s) legislative efforts continued to seek equity and fairness in whatever tax incentives biodiesel might receive in the energy bill under consideration in Congress. These two issues, depending on their outcome, will have long-term influences on the rendering industry.
BSE Uncertainty
The BSE situation in Canada continues to bring hardship to renderers and the cattle industry in that country. U.S. Department of Agriculture (USDA) Secretary Ann Veneman announced August 8th that import permit applications for certain ruminant products from Canada would be accepted. This announcement was met with praise from most everyone on both sides of the border. However, it took longer than anticipated to get the market moving. It will be even longer before live cattle will be allowed into the United States from Canada.
There were, however, skeptics and critics of the decision to begin the process of reopening the market. They cited existing U.S. policy toward other countries with reported cases of BSE where imports are still prohibited. They said the United States was not following the Office International des Epizooties’ (OIE) guidelines and wondered if the United States was not jeopardizing its own export market. USDA has adequately addressed these issues.
Most important, Secretary Veneman noted that the single BSE case in Canada and its impact on global trade calls for an international dialogue on the disease to develop more practical, consistent guidance regarding the resumption of trade with countries that have reported cases of BSE. The United States, along with Mexico and Canada, requested that OIE include such a dialogue in a meeting of international experts in September.
As of early September, the U.S. government had not changed or amended any existing regulations regarding feed that contains rendered products. There has been no action, to date, from either advanced notice of proposed rulemaking from the USDA or the Food and Drug Administration (FDA). The rendering industry will know more as to future regulations, if any, as more information becomes available, possibly subsequent to the OIE meetings.
Administration officials are realizing that the firewalls currently in place are working. They have been more cautious and deliberate in their actions in recent months. NRA representatives have had the opportunity to meet with White House, USDA, and FDA officials this past summer to better inform them of the consequences to the livestock and rendering industry of any potential regulatory actions government agencies may be considering.
The saga continues. The NRA will continue to be engaged in future government/industry discussions by providing the industry’s input to assure that any regulations imposed on the rendering industry will be based on sound science.
Biodiesel Battle
The energy bill is still working its way through the legislative process in Congress. The House of Representatives passed its version of an energy bill earlier this year. It does not have any tax incentive provisions for alternative fuels such as biodiesel.
The Senate was bogged down most of the summer with its attempt at an energy bill. The logjam was broken in the final days before the August break when the Senate unexpectedly substituted what it was working on for the energy bill it passed last year under the Democratic majority. The major objective in doing this was to get the energy legislation off of the Senate floor and on to conference with the House of Representatives. Subsequent to the Senate action, it passed a package of tax incentives that includes some for biodiesel. This tax package will be part of the Senate position going into conference.
The tax incentives in the Senate bill recognize biodiesel produced from rendered products, which is an improvement over last year’s package. However, there is still a discrepancy in the pricing between biodiesel derived from vegetable oils and animal fats, and that produced from recovered cooking oils. There-fore, NRA will continue to lobby for fairness and equal treatment between feedstocks in any biodiesel incentives.
Renderers did not seek this legislation; however, when other biodiesel interests advanced it without rendered products being included, NRA had no choice but to seek inclusion.
Congress returned from its August recess with a busy schedule. The energy bill was just one of many priorities. At the head of the list was to pass 13 appropriations bills to keep the government running after October 1. It was questionable whether work on the energy bill could be completed this fall.
House leadership is still opposed to any tax incentives in the energy bill. It will be a tough battle for the Senate to prevail. However, politics as they are, anything can happen and we must be there fighting for the interests of the rendering industry.
From the Association - October 2003 Render