Economic Effects of Mad Cow Disease

This is Robert Cohen with the VOA Special English AgricultureReport. Reports suggest that the first case of mad cow disease inthe United States has not worried the public very much. Officialspoint out that the sick cow came from Canada, although the caseremains under investigation. But the American beef industry isworried about the economic effects. More than thirty nations havebanned American beef.

North America has now had two confirmed cases of bovinespongiform encephalopathy. Last May, Canada announced a case of thebrain-wasting disease in a cow in Alberta. People who eat infectedmeat can get a rare human form. So the United States and othercountries banned imports of Canadian beef.

The ban had a sharp effect on prices. The Economic ResearchService of the Agriculture Department reports on prices in theUnited States. Its information shows that beef prices jumped almostthirty percent in one year. The research service estimated thatprices would remain high because of limited supply. People who wantto lose weight have also increased demand for beef and otherhigh-protein foods.

In August, the United States began again to accept some Canadianbeef from younger cattle. Imports of live cattle are not yetincluded.

Then, on December twenty-third, Agriculture Secretary Ann Venemanannounced the first American case of the disease. Several nationsmoved within hours to ban American beef. These included Japan, thebiggest importer of American beef.

Japan has increased its imports almost every year since the earlynineteen-seventies. But, last August, Japan raised import taxes onbeef from thirty-eight percent to fifty-percent. The higher customsare meant to help the Japanese beef industry. That industry was hurtby its own outbreak of the disease in two-thousand-one.

Late last week, a Japanese delegation met with officials inWashington to discuss steps to end the ban. Earlier, Japan said newmeasures to prevent the spread of the disease were not enough. Theseinclude a move to keep all tissue that may carry the infection outof human food. Other steps include a ban on the use of mechanicallyseparated meat in food, and the use of sick or injured cows forfood.

Japanese officials called for greater steps to test for mad cowdisease in the United States. In Japan, every cow is tested for theinfection.

This VOA Special English Agriculture Report was written by MarioRitter. This is Robert Cohen.