May 20, 2004 Reuters by Randy Fabi

R-CALF United Stockgrowers of America said the USDA permitted 33 million pounds of processed Canadian beef imports between August 2003 and February 2004.

The United States has banned such products since Canada discovered a domestic case of mad cow disease one year ago.

"We were shocked to learn that USDA had quietly relaxed our health and safety standards to allow these products in without notifying the public," said Bill Bullard, the group's chief executive officer.

Sen. Kent Conrad of North Dakota, a long-time Veneman critic, called for her resignation.

"The report is so damaging to the credibility and integrity of the USDA that I believe you should ask the Secretary of Agriculture to resign," he said in a letter to President George W. Bush.

In August, Veneman eased a U.S. ban to allow boneless beef products from Canadian cattle 30 months and younger. Processed Canadian beef, including hamburger, was deemed a higher risk and remained prohibited.

EXEMPTIONS FOR CANADA

However, a little-noticed part of the August action said Canadian plants could request an exemption from the regulations and ship beef that would otherwise be prohibited. Import permits were issued to Canadian plants deemed to have sufficient safeguards to prevent the spread of mad cow disease, a USDA spokeswoman said.

"The import permits were issued, under existing authority, for importers who had risk mitigations in place, such as only cattle under 30 months or procedures to remove specified risk materials," said Andrea McNally, spokeswoman for USDA's Animal and Plant Health Inspection Service.

The USDA refused to say how many Canadian plants were granted the exemptions. It also could not confirm R-CALF's assertion that about 33 million pounds of beef entered the country under the special permits.

Other Democrats expressed concern about USDA's actions, but did not call for Veneman to step down.

"They shouldn't have had to wage a secret campaign to bring this (beef) in," said Rep. Earl Pomeroy, a North Dakota Democrat. "When you cut corners with consumer confidence, you hurt the (livestock) industry as well."

Rep. Rosa DeLauro, a Connecticut Democrat, said the "USDA has been disorganized and slow at best, and negligent and incompetent at worst."

One U.S. agricultural industry source, who asked not to be identified, said Veneman was unlikely to lose her job.

"If (Defense Secretary Donald) Rumsfeld wasn't in trouble, I doubt that anybody at USDA is in trouble," the industry source said, referring to lawmakers who have called for Rumsfeld's resignation because of alleged abuse of Iraq prisoners.

(Additional reporting by Charles Abbott)