Former Kansas lawmaker tabbed as new USDA secretary
On election night 1992, Dan Glickman, fresh off his re-election to Congress and a supporter of health care legislation, stood before his constituents and said: "I guarantee that if we don't get a national health care bill, you deserve to kick us out."
Glickman, who served nine terms as a representative from Kansas, became a prophet of his own doom.
Health care legislation failed and Glickman failed to survive the election night 1994 onslaught that carried Republicans to the majority in the House and Senate.
Glickman's consolation prize for losing on is his nomination by President Clinton for USDA secretary. He would replace Mike Espy who left office Dec. 31 amid allegations of impropriety.
Glickman has no farming experience. But he believes he has a unique perspective on agriculture, seeing himself as one of the few voices bridging the gap between urban and rural people.
Glickman is expected to continue USDA reorganization begun by Espy. He helped steer the legislation to passage in the House.
However, there is little known about Glickman's views on meat inspection.
A member of the House Agriculture Committee, Glickman was a major player in crafting the past three farm bills. In 1990, he fought back competing demands for higher subsidies and fought for limiting subsidies to farmers with incomes under $100,000.
Among other votes of interest to the meat industry in recent years, Glickman voted for striker replacement legislation, and against family leave and the General Agreement on Tariffs and Trade.
Ground beef tests continue after judge KOs injunction
USDA's ground beef sampling tests will continue indefinitely after a judge denied an injunction requested by an AMI-led food industry trade coalition. He said the tests are exempted from rule-making procedures.
Federal Judge James R. Nowlin ruled that USDA's decision to consider E. coli 0157:H7 as an adulterant is an interpretive rule, and that the Federal Meat Inspection Act "does not require USDA to engage in substantive rule-making as a predicate to considering a particular substance an adulterant."
The coalition sought the injunction in U.S. District Court in Austin, Texas.
In arguments on Nov. 30, USDA lawyers said that Michael R. Taylor, acting undersecretary for food safety, only interpreted the department's statutory authority when he imposed the testing.
Attorney Gary Kushner, representing the coalition, argued that sampling was an abrupt shift from long-standing department policy, as well as an amendment to its safe handling label regulation.
Nowlin drew a distinction between interpretive rules and substantive rules. A interpretive rule is defined as what an official believes a regulation means. A substantive rule is defined as creating law and requiring rule-making procedures.
Nowlin had ruled in October 1993 that USDA's safe handling label violated administrative procedures. He forced the department to resubmit the rules and subject them to rule-making procedures.
But Nowlin said that safe handling labels simply required the industry to attach warning labels. "Nothing in those regulations speaks to whether a pathogen-contaminated product may be shipped or sold," he ruled.
Reacting to the decision, Taylor said the ground beef sampling program is the first step in an overall effort to reform inspection.
A statement released by the industry coalition said the ruling is a loss for consumers because it allows to continue a USDA program that fails to protect consumers, wastes tax dollars and violates the law.
The coalition will not seek further legal action on the sampling program.
Through Dec. 10, USDA completed 465 ground beef samples analyses with no confirmed positive results, a department spokeswoman said.
Industry groups file petition against South Korea over trade
The U.S. Trade Representative office has accepted a petition filed by AMI, the National Pork Producers Council and the National Cattlemen's Association against South Korea under Section 301 of U.S. trade law.
The petition was filed in response to South Korea's alleged pattern of unfair trade barriers that have halted or restricted exports of U.S. pork and beef, according to the organizations.
The U.S. government has until late this year to resolve the issues with South Korea. If the issues are not resolved, the United States can take retaliatory action.
In September, the three organizations said the unfair trade barriers jeopardize future U.S. meat trade with South Korea despite its potential as one of the most important long-term markets for U.S. red meat.
"This petition is necessary because discussions have failed to convince [South Korea] to eliminate nontariff trade barriers to U.S. agricultural products," the statement said.
The three organizations, under the auspices of the Meat Industry Trade Council, submitted written comments on the issue in July following a request for information by U.S. Trade Representative Mickey Kantor.
Huffman to head food institute
Dale L. Huffman, professor of meat and animal sciences at Auburn University, has been named the first director of the university's Food Technology Institute, according to Auburn President William Muse.
A member of Auburn's faculty since 1963, Huffman is best known for his work in the development of AU Lean ground beef and sausage products. His work on low-fat technology has led to a bevy of new products, including McDonald's McLean Deluxe.
The Food Technology Institute, established in 1993, is a cooperative research, training and extension program with the food industry.
Huffman wants more faculty working together on food-related programs, including food safety. He expects ongoing research and extension activities related to food safety to be strengthened under the auspices of the institute.
USDA nears parity on mechanically separated meats
USDA has issued its final rule on mechanically separated meat and a proposed rule on mechanically separated poultry that would bring parity to the regulation of both products.
The final rule on meat will allow companies to label product processed with meat and bone separation technology that does not crush or grind bones as "beef" or "pork."
Until now, this type of product would be required to carry a "mechanically separated" beef or pork label.
Testing programs and record-keeping will be required to ensure that products under the new label meet calcium content limits of 150 milligrams per 100 grams. The rule went into effect Jan. 5.
The proposed rule calls for poultry with bone solid content less than 1 percent to be labeled as "mechanically separated" chicken or turkey. Poultry products currently processed by mechanical separation can be used up to 15 percent of total finished product ingredient with no label identification.
New NAMP president named
Bernard Hansen, president of Alma, Kan.-based Flint Hills Foods Inc., is the president of the National Association of Meat Purveyors for the 1994-95 term.
Hansen worked as a meat salesman for Fanestil Packing before joining Flint Hills Foods in the same capacity. He later became general manager and part-owner of the company, and he purchased Flint Hills Foods in 1980.
Hansen has served on several NAMP committees and has held leadership positions in other industry groups.
Other officers elected were: Nancy Matheson-Burns, Dole & Bailey Inc., chairman of the board; Irwin Fishman, Lombardi Bros. Meat Packers Inc., vice president; Duncan MacGregor, MacGregor's Meat & Seafood Ltd., treasurer; and Jonathan W. Rocke, Rocke's Meating Haus, assistant treasurer. Deven L. Scott was re-elected as executive vice president and secretary.
OSHA nears completion of ergonomic standard proposal
The Occupational Safety and Health Administration is finalizing an ergonomic standard proposal that, if approved, would require employers to examine every job with potential problems. OSHA would provide a checklist of five risk factors. Once a problem job has been identified, a company would have 60 days to rectify it. The changes range from wrist supports for typists to major equipment redesign.
Employers also would be required to have a medical management program, ensuring workers get prompt medical attention. Workers who use computer screens more than four hours a day would be reimbursed for eye examinations and eyeglasses. More than 120 million workers would be covered.
Cumulative trauma disorder is a major source of ergonomic illnesses. Meat packers lead all industries with an incidence rate of 1,395 for every 10,000 workers; poultry slaughtering and processing is third with 693 incidents for every 10,000 workers; and sausage and prepared meats is 15th with 347 incidents for every 10,000 workers.
IBP chief Peterson attacks cattle groups
by Ken Krizner, senior editor
The head of IBP Inc. lashed out at organizations representing cattlemen, saying they spend too much time looking for excuses and not enough time fighting for the rights of the people they represent.
In a speech to the Kansas Livestock Association last month, Robert L. Peterson, chairman of the Dakota City, Neb.-based meat packing company, said organizations "spend just as much time or more looking for a scapegoat. Their usual scapegoat is a packer-especially IBP."
The spark that lit Peterson's fuse occurred last year when several organizations blamed IBP for a cattle glut and decreased prices. An excess of beef led to a decrease of more than 20 percent in cattle prices last year. Prices fell from a high of $77.50 in April to a low of $61 in June, catching beef producers off guard.
Cattlemen were outraged when prices fell $8 per hundred pounds-nearly $100 a head on a 1,200-pound steer-within a week, and then rose by the same amount several weeks later.
Blame the future's market, Peterson cautioned. Blame cattle feeders who sold futures fast and furious when the market was plummeting; blame bankers who forced producers to sell into a plummeting market. But Peterson said: Don't blame IBP. He said the company had to defend itself against potent, bald-faced lies.
IBP took the unprecedented move of allowing the National Cattlemen's Association, the Commodity Futures Exchange Commission and representatives of major cattle feeding states to examine company records. Officials determined that it was supply and demand forces-a 6 percent increase in beef production competing with record supplies of pork and poultry-and not IBP that affected market prices.
Chuck Lambert, NCA vice president of research, defended his organization. He told Meat Marketing & Technology that members wanted to know the reasons behind the price drop.
"When our members bring questions to us, we are duty-bound to raise those questions," Lambert noted. "IBP should be commended for opening its records to public scrutiny."
Perhaps Peterson's most pointed criticism came on the beef packing industry's battle with USDA over meat inspection, and his view that cattle groups are reluctant to join that battle.
When packer organizations filed a lawsuit seeking a permanent injunction against USDA's ground beef testing program, NCA did not enter the fray.
"Why are the rest of us fighting your battle?" Peterson asked. "How long will you let the federal government steal money out of your pocket?"
Lambert defended NCA's food safety efforts, saying the organization has funded research projects to seek alternative methods to reach zero tolerance for fecal contamination, as well as working with packers and processors to lobby USDA for changes in the inspection system.
"No one has a more vested interest in food safety than producers," Lambert noted.
He added that NCA's decision not to join the lawsuit against USDA was based on a strategy of not wanting to look "anti consumer." But Peterson said if cattle producers fail to join the battle and find themselves losing money as a result of low prices: "Don't call me; you have the wrong number."
Industry likes new-look Congress
Congress reconvenes this month with a decidedly different look. For the first time since 1986, Republicans control the Senate and for the first time since 1954, Republicans control the House of Representatives.
The shift in power means:
-- Meat industry allies heading key committees and subcommittees.
Sen. Richard Lugar (R-Ind.) and Rep. Pat Roberts (R-Kan.) take over as chairmen of their respective agriculture committees.
Sen. Larry Craig (R-Idaho) and Rep. Steve Gunderson (R-Wis.) will head Senate and House subcommittees overseeing inspection.
Lawmakers are expected to vote on inspection reform legislation during this congressional session.
-- Life for USDA's Pathogen Reduction Act.
While criticized by most of the industry for relying too heavily on enforcement, the measure has bipartisan support.
-- No change in the user fee debate.
Rep. Joe Skeen (R-N.M.) and Sen. Thad Cochran (R-Miss.), who become chairmen of the House and Senate agriculture appropriations committees, both oppose user fees.
But the GOP's Contract With America pledges a balanced federal budget within a decade. User fees might play a role in that debate.
"The pressure for user fees will not diminish," noted Stephen F. Krut, executive director of the American Association of Meat Processors.
And Gunderson recently admitted the user fee issue will not go away.
Will money talk?
But AMI, which is critical of USDA's inspection reform plan and user fees, spent $90,550 from its Political Action Committee on 93 winning congressional candidates.
AMI donated money to 39 re-elected representatives (20 Democrats, 19 Republicans) and six re-elected senators (three Democrats, three Republicans) who sit on agriculture committees.
So while there is support on both sides of the aisle for issues opposed by AMI, the organization has spent a nice sum of money to get its message across.
Much has been written about how the change in party control will affect Congress. Here is a sampling of what processors think it means:
-- A more closely scrutinized USDA, including its Hazard Analysis and Critical Control Point program proposal and ground beef sampling program.
-- Tougher confirmation hearings for presidential appointees, including Michael R. Taylor, acting undersecretary for food safety, and the next USDA secretary.
"The change in congressional leadership is a positive development for the meat and poultry industries," noted AMI President J. Patrick Boyle.
This opinion is shared by AAMP.
"If there has been one hallmark of the first [two years] of the Clinton administration, it is that federal agency administrators were given a green light to push the envelope of authority while a partisan Congress looked the other way," according to AAMP's Capitol Line-Up newsletter.
So the industry is optimistic about a GOP-led Congress. But that optimism could be dulled over the Contract With America because its budget-balancing measure includes abolishing USDA, leaving meat inspection an orphan.
This is something the industry would likely oppose.
An open world market lays over the horizon
Here is a nation-by-nation view of how the General Agreement on Tariffs and Trade, approved by Congress and signed last month by President Clinton, will affect the red meat industry.
The U.S. Meat Export Federation predicts that beef exports will reach $5.8 billion and pork exports will reach $1.8 billion by 2001 because of GATT. In the first eight months of 1994, beef and pork exports totaled $2.05 billion.
-- Austria
Austria will provide access for 6,983 metric tons of pork, 1,000 of which will be a minimum purchase commitment for boneless pork.
-- European Union
The EU's maximum allowable quantity of subsidized pork exports in 2000 will be 389,000 metric tons-103,000 metric tons below its 1992 level.
The EU's maximum allowable quantity of subsidized beef exports in 2000 will be 817,000 metric tons-507,000 metric tons below its 1992 level. It will also eliminate its 7 percent duty for fresh, chilled and frozen beef livers.
-- Japan
Japan will reduce its gate price for pork by 29 percent over a six-year period beginning this year, and reduce its tariff for beef from 50 percent to 38.5 percent during a six-year period beginning this year.
-- Norway
Norway will increase access to pork by 1,381 metric tons by 2000, and increase its access for beef by 1,084 metric tons by 2000.
-- South Korea
South Korea will establish a quota of 21,930 metric tons for frozen pork this year, 29,240 metric tons in 1996, and 18,275 metric tons for the first half of 1997. A tariff will be set at 33.4 percent in July 1997 and will be reduced to 25 percent by 2004.
For beef imports, South Korea will gradually expand its annual quota of beef from its current 106,000 metric ton level to 225,000 metric tons by 2000.
-- Switzerland
Switzerland will reduce its tariff for horse meat by 36 percent.
-- Thailand
Thailand will reduce duties for beef from 60 percent to 50 percent during a 10-year period.
--The Philippines
The Philippines will lift its import ban on pork and immediately open a tariff rate quota of 32,000 metric tons, increasing to 54,000 metric tons by 2004. It will reduce its tariff for beef from 60 percent to 35 percent by 2004.
MM&T