February 25, 2004 Spokesman Review (Spokane, WA) by Jimmie Presley

To help stem the losses, the U.S. Department of Agriculture may require extra tests to improve protection from the disease, department officials told the Senate Appropriations Committee.

Keith Collins, the USDA chief economist, said the 2004 outlook for the nation's beef industry was reassessed after a cow in Mabton, Wash., tested positive for bovine spongiform encephalopathy.

''Regaining our export markets is crucial for the prosperity of the U.S. cattle and beef industry," said Collins. ''The loss of these exports means that more beef must now be consumed in the domestic market, consumed at a lower price."

If the foreign markets don't reopen, cattle prices are expected to drop a total of $5.9 billion from 2003.

Before December, 90 percent of U.S. beef exports were purchased by Japan, Mexico, South Korea and Canada. Those countries now ban or restrict American beef.

Collins said the department has been working vigorously with these countries since the case was discovered. He expects Canada and Mexico to begin opening up parts of their markets in a matter of days.

Japan, which tests all its cattle, has recently found its 10th case of BSE, Collins said, and is very concerned with consumer confidence.

It won't allow U.S. beef imports unless all 35 million cows slaughtered in the United States are tested, and parts thought to carry the disease are banned from the food supply. Currently those parts, which include the brain and spinal cords, are only removed if the cow is 30 months or older.

''So they've demanded some unreasonable things," Collins said.

The biggest loss in export markets is projected to be in beef, veal and ''variety meats" like tongue, liver and intestines. Those brought in $3.86 billion in foreign sales last year - with 91 percent of those products going to countries that have suspended U.S. beef imports.

The United States has started a new national identification system for cattle, USDA officials said. After the Mabton case was discovered, the USDA said it would double the number of cattle tested for BSE this year to 40,000. It will also target ''high-risk" cattle showing symptoms of neurological problems.

Ron DeHaven, chief of veterinary services for the USDA, said the department is also looking at ''a more robust surveillance program."