Age Verification for Japan: What is involved and is it right for me?

1. Western Center for Risk Management Education Western Extension Marketing Committee Age Verification for Japan: What is involved and is it right for me? Prepared by: John D. Lawrence Iowa State University

2. Overview • Japan was largest US beef export customer in 2003 • 37% of volume and $1.4 billion • Resume limited beef trade with US • Beef from cattle under 21 months • Verification program to prove age • Signed affidavits alone are not enough

3. US Beef Exports 2003

5. Export Verification (EV) Program • It outlines the specified product requirements for beef to be eligible for export to a specific country. • Each country has EV standards

6. Export Verification (EV) Program • Each plant must have a Quality System Assessment Program (QSA) explaining how it will meet the requirement for each country.

7. Current International Standards (OIE) for Beef Trade • Most countries other than Japan • Boneless beef cuts from animals younger than 30 months. • So long as special safeguards are in place to avoid any contamination of the meat during slaughter.

8. Beef Export Verification (BEV) Program for Japan • Beef from cattle verified to be less than 21 months of age. • Two methods to confirm age • Physiological maturity A40 • Production records

9. USDA Export Verification (EV) Program for Japan • Age Verification through Carcass Evaluation • Cattle of unknown age may be selected through carcass evaluation • Official USDA evaluation using the US Standards for Carcass Beef

10. Age Verification through Carcass Evaluation Slaughter Operate In “Export for Japan” Mode USDA Evaluator Grading Maturity Score (Bone, Lean & Overall) Grading for Japan J USDA Accepted as Specified ≤A40 ・Processing ・Packing ・Storage ・Processing ・Packing ・Storage Shipping Shipping to Japan

11. USDA Export Verification (EV) Program for Japan • Verification of age with production records • Cattle must be traceable to live animal production records throughout their life time. • Two methods: Individual and group ID

12. USDA Export Verification (EV) Program for Japan • Individual Animal Age Verification • Animals must have unique individual identification • Records must be sufficient to trace the individual animal back to ranch records

13. USDA Export Verification (EV) Program for Japan • Individual Animal Age Verification • Records must indicate the actual date of birth (month, day, year) of the animal and must accompany each animal through the process

14. NAIS is NOT Age Verification • Recognize that NAIS is a confidential animal id system not a market tool • Tags used for NAIS may also be used to id cattle for age verification, but NAIS is NOT age verification • Birthdays are not required for NAIS

15. USDA Export Verification (EV) Program for Japan • Group Age Verification • All animals within a group and born during the same calving season must be individually identified • Records must indicate the actual date of birth (month, day, year) of the first calf of the calving season

16. USDA Export Verification (EV) Program for Japan • Signed affidavits alone are not sufficient to qualify cattle for Japan. • The producer’s production records must be part of a USDA-approved QSA program or Process Verified program (PVP). • These programs require producer evaluations and re-evaluations.

17. QSA and PVP • Developed by company or organization that is responsible for the program. • Is evaluated, approved and will be audited by USDA. • A documented system that describes how a producer manages his or her operation.

18. QSA and PVP • Each producer must have a written quality management system (QMS) that describes what records are kept and where to find them. • The plan must ensure that everyone in the operation knows and follows the protocol.

19. Quality Management System • A written management system that must address: • Documentation Requirements • Management Responsibility • Resource Management • Production of Product • Measurement, Analysis and Improvement • Record Requirements

20. Producer Requirements • Records to validate age • Procedures – Farm or Ranch Plan • Records to validate activities • Must be repeatable • Producer is evaluated by company and/or USDA to verify conformance.

21. Farm/Ranch Profile • Description of the legal status • Maps or descriptions were specific animals are maintained • Number of acres • Number of breeding stock • Feeding practices • Timeline of operations

22. Farm/Ranch Profile • Purchases of stock from outside sources • Breeding methods and seasons • Calving seasons • Name of veterinarian • Type of animal identification • Other procedures specific to the ranch

23. Farm/Ranch Profile RECORDS to support the farm/ranch profile • Breeding season records • Calving records • Purchase records • Sale records • Trucking records • Herd Health records • Records of animal movement

25. Five Primary Options To Producers • Have own PVP or QSA • Enroll in a PVP or QSA with a group of producers • Enroll in a PVP or QSA of the next segment in supply chain • Producer + Backgrounder • Backgrounder + Feedlot

26. Five Primary Options To Producers 4. Enroll in a QSA of a packer • Involves all segments of the supply chain 5. Enroll in a PVP or QSA from an independent third party • May use program compliant ear tags

27. Program Compliant Ear Tags A Program Compliant Ear Tag is: • Unique and specific to the Program. • The tag must be applied at the farm of birth, or an alternate location as approved on a case by case basis.

28. Program Compliant Ear Tags • Cattle with Program Compliant Ear Tags may move through the production system without further verification activities. • Companies receiving these cattle must verify conformance prior to inclusion.

29. Which one QSA or PVP? It is very costly to develop your own QSA or PVP. • 2006 estimates are $8000 for USDA costs and $4000 for a consultant. • Spreading across producers reduces development and approval cost but increases enforcement and compliance cost • Probably not practical for individuals or small groups

30. Which one QSA or PVP? • In general, PVP are defined to be broader than only age and source • Most PVPs are independent companies or associations • There often is a cost beyond the price of the tag to participate. • Cattle in a PVP can be sold to anyone needing to fulfill a BEV

31. Which one QSA or PVP? • QSA only verify age and source • Most QSAs are with a packer or feedlot and they are not transferable to other buyers • There is typically little or no out-of-pocket cost to participate in a QSA

32. Factors to Remember • NAIS is not QSA or PVP • Tagging cattle for national ID does not qualify them for Japan • Premiums for age verification will depend on market conditions • Supply of A40 and QSA/PVP cattle relative to the demand from Japan will determine the premium

33. Summary • QSA/PVP are not required to market cattle • Japan is expected to rebuild the increasing demand for age verification • Other marketing programs do/will value documented claims • QSA/PVP follow good management practices and may improve the overall management of the operation