Creekstone confident USDA will approve BSE testing

2004-03-23 22:38:53 GMT (Reuters)

By Randy Fabi

WASHINGTON, March 23 (Reuters) - Creekstone Farms Premium Beef said on Tuesday it was "very optimistic" the U.S. Agriculture Department would allow the meatpacker to test all of its slaughtered cattle for mad cow disease.

Kevin Pentz, the company's vice president of operations, told Reuters negotiations with USDA were "moving very quickly" and it was hopeful a final decision would be made soon.

The privately owned company wants to test all of its slaughtered cattle in order to resume trade with Japan, which shut its borders to U.S. beef after the discovery of the first and only U.S. case of mad cow disease in December.

Japan, the top buyer of American beef, has repeatedly said it would not lift its ban until the United States tested all of its cattle.

The USDA said it has not yet made a decision on Creekstone's request.

"We haven't said 'No' and we haven't said 'Yes,'" said USDA spokeswoman Alisa Harrison. "It's still under review."

USDA officials have repeatedly expressed their opposition to testing all cattle for the brain-wasting disease, saying there is no scientific evidence to support such action.

"From a surveillance and an animal health and a food safety standpoint, we don't think it's justified," Harrison said.

However, USDA said it was carefully considering allowing independent testing for mad cow disease as a marketing tool.

"This is something we are looking at from all different aspects because it would be a precedent-setting decision," Harrison said. "So we are going to make sure we do it right."

USDA officials would not indicate when the department will make a final decision.

GOING FORWARD DESPITE UNCERTAINTY

Despite not knowing how USDA will decide, Creekstone has invested "hundreds of thousands" of dollars in building a private laboratory at its beef plant in Arkansas City, Kansas.

"With approval, we could actually have it (the lab) running next week," Pentz said.

Japan's ban costs Creekstone about $100,000 daily in lost sales, the company said. About 40 workers have been laid off.

Japan, which bought $1.4 billion worth of U.S. beef last year, represents 20 percent of Creekstone's sales. Total annual beef sales for the company are estimated at $250 million.

"It is very critical for us to get the export markets opened," Pentz said.

One of the issues the USDA must tackle in its decision is whether testing for Japan would prompt U.S. consumers and other foreign countries to demand similar treatment.

"We're not promoting our beef as better. That is not our intention," Pentz said. "Our sole intention is to open export markets and bring jobs back."