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ABA Presentation

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1. ABA Presentation Warning of the dangers of importing Beef from BSE affected countries

2. Australian vs USA Retail Beef prices

4. Australian vs USA Cattle Prices Liveweight

6. Cost of Cattle

8. Farm to Retail Spread

9. Between 2000 and 2009 There has been a 53% increase in the retail price of beef. There has been no increase in the price of domestic class cattle. None of the retail price increase can be attributed to the cost of livestock. None of this increase can be attributed to the cost of processing. Virtually 100% of the increase in the retail price of beef has been captured by the retailer.

10. What this Decision means to you the cattle producer 10% of beef consumption will be imported beef. 10% is equivalent to 50,000 tonnes. Importing 50,000 tonnes of boneless beef is the equivalent of 357,143,  200 kg carcase weight cattle. Imports will not reduce retail prices It will put enormous pressure on the carcase beef trade (domestic processors and retailers who use carcase beef). Carcase beef is perishable compared to Vacuum packed beef.

11. Australia’s premium export markets in north Asia are particularly sensitive to the BSE issue.   The USA is still struggling to regain sales in Japan and South Korea because of public perceptions.   Australia already had over capacity in beef processing.  This imported product will close the equivalent of two 1000 head/day processing plants. It costs 58 cents to import 1kg of beef to Australia from USA.

12. Cost of Imports

16. Mr. Vaile Wrote “Australia and the United States note that the OlE is presently reviewing BSE standards as they relate to animal and public health” “Australia and the United States also recognize the importance of encouraging Codex and OlE members to apply internationally agreed BSE-related standards and guidelines consistently and appropriately and will work both within and outside these organizations to achieve this objective.” “I have the honour to propose that this letter and your letter in reply confirming that your Government shares this understanding shall constitute an integral part of the Agreement.”

17. Mr. Zoelick Responded “I have the further honor to confirm that my Government shares this understanding and that your letter and this reply shall constitute an integral part of the United States-Australia Free Trade Agreement.”

18. And what were the OIE planning? They were planning to remove the “BSE Free” Status, that included Uruguay, Australia, New Zealand and Argentina, and lump all these countries into a “BSE Negligible Risk” category. So the new BSE status was this: Negligible Risk – Australia, Uruguay, New Zealand and Argentina. Controlled Risk – Canada, USA, Brazil, Chile, Taiwan, UK etc Undetermined Risk – Balance of countries not mentioned. In May 2007, OIE classified the United States as a “Controlled Risk” country

19. US-Australia Free Trade Agreement Question: “Will the Minister give the Australian beef industry an assurance that US beef will not be imported into Australia whilst the US has BSE cases and Australia has none?” Response: “Australia has the sovereign right to set it’s own food safety standards, including for BSE. Under Australia’s policy for the safety of imported food, imports of beef products produced on or after the date a country reports an indigenous case of BSE are prohibited.”

20. BSE VS CJD in “Controlled Risk Countries”

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