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NATIONAL MEAT ASSOCIATION h 1970 Broadway, Suite 825, Oakland, CA 94612

(510) 763-1533 Fax (510) 763-6186 h Email Address: [email protected] h http://www.nmaonline.org

Edited by Kiran Kernellu

April 7, 2003

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MEETING WITH SECRETARY VENEMAN � ONE WEEK LATER

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As we reported last week, NMA�s Executive Director Rosemary Mucklow participated in the industry meeting with Secretary Ann Veneman last Monday. NMA has great difficulty with the Secretary�s view that USDA needs additional authority when USDA has been unable to identify the problem(s) such new authorities would solve.�

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The meat and poultry industries have a strong, vested interest in producing food that is safe to eat. This is not a �blame the consumer� philosophy if there is illness, but with today�s scientific and technological knowledge, it is unrealistic to assume that raw meat and poultry are safe to eat without final food preparation involving cooking. Today�s technology dictates that consumers accept responsibility for being part of the food preparation chain, including appropriate food handling to prevent cross contamination, proper refrigeration, and, of course, proper cooking to destroy pathogens. An alternative might be that all food be sterilized, such as canned, or that it be irradiated, or that all our food be delivered to us in the form of MREs such as are being consumed by our soldiers in the Iraq War. Most Americans appear to accept responsibility for properly handling the food they and their families are going to eat.

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Consumers have a right to expect that ready-to-eat foods are safe to eat straight out of the package. Slow-growing, cold-tolerant Listeria monocytogenes poses a problem, since it may be undetectable at the time of packaging, but may grow in the package during shelf life. New inhibition technologies to combat this pathogen�s ability to grow in the package at refrigerated temperatures are showing great promise. These new technologies are similar to technologies developed years ago to assure the safety of dry sausage, certain cheeses, and even yogurt, using an inhibitor known as �starter cultures.� Unfortunately, the bureaucratic hurdles to approve new technologies to enhance safety grind slowly, and the delays fall between the cracks of different government agencies. NMA is hopeful that the Secretary understood the message from various attendees at last week�s meeting, and that she will use her office to work with her counterparts at the Food & Drug Administration to get these technologies into the marketplace.

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Food safety will not be improved by additional enforcement authority to close companies. The Food Safety & Inspection Service (FSIS) has already indicated that the training of its workforce in food sciences needs substantial improvement. A signal failure in the implementation of the 1996 Hazard Analysis and Critical Control Points (HACCP) Rule was refusal by USDA to engage in joint training with the industry. USDA leaders preferred to utilize the enforcement �gotcha� technique. Rejection in the federal court system of unbridled use of enforcement authority should not now be the Secretary�s rationale to seek additional enforcement authority. Rather, it should motivate her to ask what went wrong in the implementation of HACCP, and how can it be fixed?

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NMA has some strong views on these questions. First, at last week�s meeting, we presented the Secretary data from FSIS�s Quarterly Reports (see page 3 for table) on the appeal system for Non Compliance Records (NRs). Fundamental flaws in this first line enforcement tool distort the food safety record. The system it replaced, graduated Process Deficiency Records (PDRs) in the Performance Based Inspection System (PBIS) program, better reflected compliance. Second, FSIS has chosen to mandate Critical Control Points (CCPs), which are not supported by science. It has done this as a matter of �regulatory HACCP.� If U.S. food safety systems are to be the world leader, then we need to resolve these serious differences. Finally, the tradition of �continuous inspection� was previously exercised through a line-inspection system. Today, principals and managers of official establishments are the target of various officials from different parts of the agency, all bearing the badge of authority. Quite often, the authority of the line inspection officials assigned to the plant is at worst ignored, and often over-ruled, sidestepped, or just plain disregarded. This puts plant managers at the command of several different officials (the IIC, Circuit Supervisor and District Manager, Compliance Officers, Consumer Safety Officers, Correlation Teams, IDV teams, and more). This usually occurs at a time of crisis, when plant managers� first responsibility in the name of protecting the public health is to identify and recover product in the marketplace, and address an in-plant system that may have a serious defect.

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It�s time for a responsible evaluation of the effectiveness of USDA�s HACCP and Pathogen Reduction programs. Problems or deficiencies should be clearly identified and appropriate solutions should be tailored to address them. To date, all evidence suggests that problems that are not scientific are causing delays in deployment of new food safety technologies. With the courts delivering substantial judgments against FSIS based on some officials abusing authority, it is not a time for USDA to seek additional enforcement authority.

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MEALS READY TO EAT

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The Wall Street Journal (WSJ) reported Friday on Meals Ready to Eat (MREs), or field rations, being fed to our soldiers in Iraq. WSJ critic Raymond Sokolov sampled retail versions of the MREs supplied to our Armed Forces by Wornick Co. of McAllen, TX. He sampled all six of the menus available to the general public. (The military has access to 24 meals.)

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While the recommendation is to eat the meals cold, Sokolov found that they �taste particularly flat eaten right out of the khaki bag,� since most of them lack enough salt. Sokolov declared the �Turkey with Savory Vegetables� the best entr�e of the six that also included �Parmesan Chicken,� �Beef Stew,� �Vegetarian Pasta Fagioli,� �Beef Chili with Red Beans,� and �Spaghetti and Meatballs.� Some of the items included in the meals are an orange drink, jam, crackers, oatmeal cookies, and fruit. Sokolov commented, �� while no one would confuse these vacuum-packed morsels with gourmet meals, we actually found a few culinary surprises.� Still, he concluded that �just a few of [the cycles of the 24 menus] should raise any grunt�s incentive to storm Baghdad��

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NMA/SMA ANNUAL D.C. TRIP

Leaders of NMA and Southwest Meat Association (SMA) will make their annual visit to Washington, D.C. April 8-10, 2003. We invite our members to join us in meeting with legislators and regulators and helping to inform them about the industry. Please call the NMA office at 510-763-1533 if you need more information to attend.

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ELECTRONIC NEWSLETTER

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Lean Trimmings and Herd on the Hill are offered electronically. If you�d like to receive the newsletter via e-mail, please contact Kiran Kernellu at [email protected] or 510-763-1533. Receive the latest news every Monday afternoon in your Inbox instead of waiting for it in the mail!

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NMA reports news items that are of special interest to its readers, and provides information that they may want to be able to access.� Below are links to the Federal Register, AMS, APHIS, and FSIS, respectively:

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http://www.access.gpo.gov/su_docs/aces/aces140.html

http://www.ams.usda.gov/

http://www.aphis.usda.gov/

http://www.fsis.usda.gov/

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ANIMAL HANDLING VIDEOS

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NMA has available two videotapes on animal handling, �Animal Stunning for Stunners,� and �Animal Handling in Meat Plants.� NMA members may purchase these videos at a discounted price. Please contact Julie Ramsey at [email protected] or 510-763-1533 for more information.

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BEEF INDUSTRY FOOD SAFETY COUNCIL STEERING COMMITTEE MEETING

The Beef Industry Food Safety Council (BIFSCo) Steering Committee met in Denver, CO last week to continue the checkoff-funded E. coli Summit of January 7-8, 2003. NMA�s Executive Director Rosemary Mucklow was in attendance. At the meeting, BIFSCo members reviewed the �Interventions, Best Practices and Research Plan� across industry sectors.�

Over 200 Summit participants have been drafting and editing these documents since January.� The Plan is expected to begin rolling out in 45 days and will serve as a road map for the sectors in reducing E. coli O157:H7.� Once it is complete, a complimentary copy will be available online at http://www.bifsco.org/.� �This initiative is becoming the principle platform for E. coli management because it has been able to connect individual sector plans and facilitate expectation sharing across sectors.� We are pleased USDA has recognized the industry�s commitment and leadership, and we are particularly encouraged by the Secretary�s interest in investing in research to expedite identification of new and effective tools,� said Rosemary Mucklow.�

�This Plan will be a �living document� for the entire beef production chain.� It will set out what we know to date as effective interventions, best practices and promising research.� Each industry sector and individual operation will be able to look to it for the most up-to-date understanding of how to best reduce the incidence of this pathogen,� said James O. Reagan, Ph.D., vice president, research and knowledge management, National Cattlemen�s Beef Association (NCBA), in a press release.�

BIFSCo members include Summit working group chairs and other Summit participants who will update this plan on an ongoing basis as science sheds light on new pathogen-control solutions. BIFSCo members also discussed the possibility of creating a database to house E. coli data throughout the chain.� Individual company data would be blinded and confidential.� While development of such a database is in the preliminary discussion stage, participants anticipate that it would be used to track pathogen-control progress overall and would allow individual operations to evaluate themselves against a benchmark. �We continue to look for ways to accomplish our database vision.� An industry-wide database would truly improve our ability to understand and thereby manage O157:H7,� said Tim Biela, vice president of food safety and quality assurance, Texas American Foodservice and sector leader for processing.

An executive summary of the Beef Industry E. coli Summit was published shortly after the January meeting, and can be viewed at www.beef.org under �Research.�� The executive summary was mailed out to NMA general members. NMA members contact Kiran Kernellu at 510-763-1533 or [email protected] to request a copy by mail.

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FSIS QUARTERLY REPORT DATA ON ISSUANCE OF NONCOMPLIANCE REPORTS (NR), APPEALS AND THEIR DISPOSITION, JANUARY 1998 THROUGH JUNE 2002

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WORKERS COMP INSURANCE HITTING BUSINESSES HARD

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The cost of workers comp insurance is skyrocketing throughout the nation, especially in California.� Members of the California State Legislature Joint Republican Caucus, which includes 15 Senate Republicans and 32 Assembly Republicans, urged Governor Davis to convene a special session to deal specifically with the rising fees of workers comp insurance and its impact on the economy.� From farmers to non-profit organizations, increasing costs have forced businesses to scale back services, raise costs and lay off employees.� The legislators stated that reform is needed to make the workers� compensation system fair and affordable while eliminating the opportunity for fraud.� Reduced number of providers, rising medical costs, fraud, and increased benefits have mainly contributed to the ever-increasing cost of insurance.� Another concern includes the ability for businesses to obtain insurance altogether.� What is needed is a positive solution to stimulate the economy and a system that is workable and affordable for both employers and workers.

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California NMA members participating in the State Compensation Insurance Fund Group Insurance Program should contact their elected representative to voice their concerns.� As an association we can enhance the workers comp program by providing additional support with safety programs and educational teleconferences at no or minimal costs to members.�� It is crucial that California develop and maintain a sound business climate.

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COMMENTS ON COOL DUE APRIL 9

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Comments on AMS� interim voluntary guidelines on COOL are due April 9, 2003. You can view additional information and comments already submitted by visiting http://www.ams.usda.gov/cool/.

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STANDARDIZING MEAT LABELING

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The Associated Press recently reported that the USDA is under pressure from all sectors of the food industry to specify what marketing terms mean. To clear up the confusion a proposal outlining what companies may say about meat has been put forth. These standards would define claims about the use of antibiotics, the animal�s diet and other marketing tools. The agency has not set a date for when the proposal will take effect.

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NATIONAL MEAT ASSOCIATION

NMA - East: 1400 - 16th St. N.W., Suite 400, Washington D.C. 20036 Ph. (202) 667-2108

NMA - West: 1970 Broadway, Suite 825, Oakland, CA 94612 Ph. (510) 763-1533 Fax (510) 763-6186

Edited by Kiran Kernellu

April 7, 2003

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STANDARDS FOR LIVESTOCK AND MEAT MARKETING CLAIMS

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Last month NMA responded to an Agricultural Marketing Service (AMS) Federal Register notice and request for comments entitled, �United States Standards for Livestock and Meat Marketing Claims,� which was published on December 30, 2002. View the notice at:

http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2002/02-32806.htm. NMA commented that the �standards for livestock and meat marketing claims, under the oversight of USDA/AMS Standardization Branch, have provided an increasingly valuable marketing opportunity during the past fifteen years.�

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NMA also commended the agency for moving forward to publish the basic requirements so that they may be known as a matter of public record, and for providing more information about the process to make claims. �Quite frankly, it is important that the standard for any such marketing claims be truthful, and that the standard set in Rubin v. Coors Brewing Company decided by the United States Supreme Court on April 19, 1995, which affirms the right to commercial free speech by the First Amendment, be the standard.� NMA�s comments include the following quote from Justice Stevens� concurrence in that Opinion:

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�A truthful statement about the alcohol content of malt beverages would receive full First Amendment protection in any other context; without some justification tailored to the special character of commercial speech, the Government should not be able to suppress the same truthful speech merely because it happens to appear on the label of a product for sale.�

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NMA members contact Kiran Kernellu at 510-763-1533 or [email protected] for a copy of the comments in full.

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DEPUTY ADMINISTRATOR FOR BIOTECHNOLOGY REGULATORY SERVICES

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Cindy Smith has been named deputy administrator for biotechnology regulatory services (BRS) in USDA�s Animal and Plant Health Inspection Service (APHIS). This newly formed APHIS program was created as a result of a restructuring of APHIS� biotechnology regulatory functions in June 2002. BRS is responsible for regulation of the import, interstate movement and field testing of plants and arthropods in its goal to provide global adoption of policies for the safe use of biotechnology.

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Smith holds a B.S. in microbiology and a master�s in management from the University of Maryland. She began her career with APHIS in 1979, in varying roles with plant protection and quarantine, biotechnology, biologics and environmental protection and wildlife services. She most recently served as associate deputy administrator of wildlife services and as acting deputy administrator for biotechnology regulatory services. �Cindy has many years of experience with APHIS and is one of our agency�s most talented leaders,� said APHIS Administrator Bobby Acord. �All of us at APHIS welcome Cindy in her new role in ensuring the success of this new organization.�

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USDA INFORMATIONAL SESSIONS ON COUNTRY OF ORIGIN LABELING

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The Agricultural Marketing Service announced the following dates and locations for the listening and education sessions on the Country of Origin Labeling law included in the 2002 Farm Bill. All sessions will be from 1:00 � 4:00 p.m. local time.

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April 29 -- Raleigh, N.C.	May 8 -- Kearney, Neb.	June 12 -- Sacramento, Calif.
Jim Graham Building	University of Nebraska at Kearney	California - EPA HQ
Hall of Fame Room	905 West 25th St.	Joe Serna Jr. Building
1025 Blue Ridge Road	Kearney, Neb. 68849	Central Valley Auditorium
Raleigh, N.C. 27607	�	1001 I St.
�	�	Sacramento, Calif. 95814
May 1� -- Austin, Texas	May 14 --�Orlando, Fla.	�
William B. Travis Bldg, Rm. 1-111	Orange County Admin Bldg.	June 19 -- Baton Rouge, La.
1701 North Congress Ave.	Board of County Comm. Chambers	S. Univ. Ag. Research & Ext. Ctr.
Austin, Texas 78711	201 South Rosalind	B.A. Little Drive
�	Orlando, Fla. 32801	Baton Rouge, La. 70813
May 2 -- Pasco, Wash.	�	�
Red Lion Hotel	June 4 -- Cody, Wyo.	June 24 -- St. Paul, Minn.
2525 North 20th Ave.�����������	Holiday Inn	University of Minnesota
Pasco, Wash. 99301	1701 Sheridan Ave.	Earle Brown Continuing Ed Ctr.
�	Cody, Wyo. 82414	1890 Buford Ave.
May 6 -- Kansas City, Mo.	�	St. Paul, Minn. 55108
Hilton Kansas City Airport	June 6 -- Billings, Mont.	�
8801 NW 112th St.	Holiday Inn	June 26 --�Lancaster, Pa.
Kansas City, Mo. 64153	5500 Midland Road	Lancaster Farm and Home Center
�	Billlings, Mont. 59101	1383 Arcadia Road
�	�	Lancaster, Pa. 17601

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COOL COMPLIANCE COSTS

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Drover�s Alert reported Thursday that estimated compliance costs of COOL exceed $8 billion, and that figure is just for the beef industry! In the report Texas A&M University professor of livestock Ernie Davis said that the estimated compliance cost of country-of-origin labeling is $8.9 billion for the beef industry. Davis gave his estimate with a breakdown as follows: $1.3 billion for cow-calf producers, $9 million for stocker operators, $23 million for feedyards, $688 million for packers and $6.9 billion for retailers.

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SYSCO ACQUISITION

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SYSCO Corp. is expected to close a deal at the end of this month to purchase the specialty meat-cutting division of the Colorado Boxed Beef Co. of Auburndale, FL, and its affiliated foodservice operation, J&B Foodservice, for incorporation into SYSCO�s Buckhead Beef subsidiary.

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ROUNDTABLE SEMINAR TAPES

Audio tapes of the interactive roundtable seminars at NMA�s 57^th Annual Convention are now available! Don�t miss out on the thought-provoking and challenging questions and answers from experts and attendees during these twelve sessions: Preventing H7; What Works; Making RTE Products Safe; Sampling & Testing Methods; The Workplace Q&A; Industry Consolidation; Security: Business & Industry; Managing the Paper Trail; Standards for HACCP Validation; Industry-Government Working Together; COOL or NOT COOL! & Nutrition; Telling the Meat Industry Story; and Moving Forward with Branded Meats. Contact NMA at [email protected] or 510-763-1533 to request an order form.