European Union expansion may impact U.S. hormone-free beef producers

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European Union expansion may impact U.S. hormone-free beef producers U-WIRE)

AMES, Iowa -- Special niche cattle producers are already working to comply with

stiff beef regulations to sell their products in European Union countries, and

soon more countries will be regulated under E.U. policies.

The E.U. regulations call for hormone-free production of cattle for their

consumer markets, said Roxanne Clemens, managing director for Midwest

Agribusiness Trade Research and Information Center. This means that no hormones

can be used at any time in the life of the animal.

In 2004, 10 more countries will join the European Union, Clemens said, making an

even larger market that is virtually untouchable to the U.S. beef market.

The European Union has " stringent guidelines for production, harvesting and

shipping certified non-hormone-treated beef, " said Clemens, program coordinator

for the Center for Agricultural and Rural Development at Iowa State University.

Hormone-free animals are those that are raised without the use of growth

stimulants and antibiotics, said Ron Wortmann, director of Wortmann Farms, a

USDA-approved hormone-free research farm.

Clemens said although the USDA deems hormone-enhanced meat safe for human

consumption, the E.U. believes hormones are " not safe for human consumption

because of abuse of growth-promoting hormones which have been tied to reactions

among humans. "

Scientific research from the E.U. reports even regulated use may have ill

effects, she said.

Currently, very little trade is occurring between the E.U. and the U.S. Clemens

said this is because of the " additional costs of production, slaughtering and

shipping. "

The E.U. began its ban on beef imports containing growth-promoting hormones in

1989, according to a MATRIC Briefing Paper written by Clemens and Bruce A.

Babcock.

After this decision by the E.U. the United States then appealed this to the

World Trade Organization.

The WTO ruled against the E.U., saying it could not impose these qualifications

on meat the E.U. imports from other WTO member countries, Clemens said. Despite

the ruling, the E.U. refused to lift the regulations.

In July 1999, the U.S. implemented retaliatory tariffs, Clemens said. " The E.U.

decided to pay the tariffs instead of lift the regulations, " she said. The

tariffs were designed to even the field by blocking E.U. imports, but

researchers say the U.S. beef industry has the most to lose.

The European Union was set up after the Second World War. It was first comprised

of six countries that joined to create " the first concrete foundation of a

European federation, " according to http://europa.eu.int/. Ten new members will

be part of the fifth wave of membership.

Countries such as Hungry, Latvia and Poland, among others, will soon be subject

to the E.U. policies because of their entry into the union.

According to a USDA report, hormones are used on approximately 90 percent of

commercial feedlots. It is difficult for the hormone-free producer to keep up

with the conventional beef lots, Clemens said.

By using hormones to enhance growth, the farmer can " promote faster growth and

higher feed efficiencies, " Clemens said. Because of the increased growth rate,

hormone-using producers spend $15-$40 less per head.

The hormone-free producer also has additional costs, which hormone-using

producers do not have. They must obtain certification through the USDA's

Non-hormone Treated Cattle program. Clemens said she estimated, " $3,000 is

required for the initial certification process. "

Extra costs are also associated with slaughter and shipping. Clemens said, " Only

2 packing plants, both in Omaha, are certified to slaughter U.S. beef for export

to the European Union. "

Because of the reduced sales to the European Union in the past 5 years, many

producers have turned to alternative markets to sell their meat, Clemens said.

One of these markets is the U.S. natural beef market. This niche market pays an

additional premium for certified non-treated beef, Clemens said.

Wortmann said, " There is a growing demand for non-hormone treated beef, because

of health concerns. "

There are many reasons why natural beef consumers choose to eat hormone-free

beef. Many people do not want to eat hormone-treated beef because of health

concerns. Others believe that eating meat that is treated with antibiotics would

make the antibiotics they take for their illnesses less effective, Wortmann

said.

Clemens said some U.S. natural beef consumers believe that hormone-free beef is

of higher quality. Hormone-free producers are also looking toward the fine

dining market, she said.

In order to compete in the U.S markets, hormone-free producers have promoted

their high traceability, said Clemens.

" The USDA can trace each animal from calf to slaughterhouse, " she said.

 

 

 

 

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