Economic Effects of Mad Cow Disease

Reading audio



2004-1-12

This is Robert Cohen with the VOA Special English Agriculture
Report. Reports suggest that the first case of mad cow disease in
the United States has not worried the public very much. Officials
point out that the sick cow came from Canada, although the case
remains under investigation. But the American beef industry is
worried about the economic effects. More than thirty nations have
banned American beef.

North America has now had two confirmed cases of bovine
spongiform encephalopathy. Last May, Canada announced a case of the
brain-wasting disease in a cow in Alberta. People who eat infected
meat can get a rare human form. So the United States and other
countries banned imports of Canadian beef.

The ban had a sharp effect on prices. The Economic Research
Service of the Agriculture Department reports on prices in the
United States. Its information shows that beef prices jumped almost
thirty percent in one year. The research service estimated that
prices would remain high because of limited supply. People who want
to lose weight have also increased demand for beef and other
high-protein foods.

In August, the United States began again to accept some Canadian
beef from younger cattle. Imports of live cattle are not yet
included.

Then, on December twenty-third, Agriculture Secretary Ann Veneman
announced the first American case of the disease. Several nations
moved within hours to ban American beef. These included Japan, the
biggest importer of American beef.

Japan has increased its imports almost every year since the early
nineteen-seventies. But, last August, Japan raised import taxes on
beef from thirty-eight percent to fifty-percent. The higher customs
are meant to help the Japanese beef industry. That industry was hurt
by its own outbreak of the disease in two-thousand-one.

Late last week, a Japanese delegation met with officials in
Washington to discuss steps to end the ban. Earlier, Japan said new
measures to prevent the spread of the disease were not enough. These
include a move to keep all tissue that may carry the infection out
of human food. Other steps include a ban on the use of mechanically
separated meat in food, and the use of sick or injured cows for
food.

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

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