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Kan. Meatpacker Will Test For
BSE Cheaper Than USDA

By Randy Fabi
4-14-4


WASHINGTON (Reuters) -- Creekstone Farms Premium Beef, a small Kansas meatpacker, said Wednesday it could test many more cattle for mad cow disease than the U.S. Agriculture Department and at a much lower cost.
 
Creekstone, which the USDA last week prohibited from testing its own cattle for the brain-wasting disease, said it could test 300,000 cattle per year for less than $6 million.
 
The USDA plans to test more than 200,000 cattle at a cost of about $70 million.
 
The company has built a private laboratory at its plant in Arkansas City, Kansas, and says it can test for $18 per head, compared with USDA tests at $325 per head.
 
"The Creekstone Farms' plan will cost less than $6 million using the identical test kit, and our customers are willing to pay for the cost of the testing," the company said in a letter to top USDA officials. The company made a copy of the letter available to Reuters.
 
USDA officials were not immediately available to comment.
 
Creekstone urged the USDA to reverse its decision last week and allow it to test independently for mad cow disease, a step the privately owned company deems necessary to resume its trade with Japan.
 
"We are definitely going to fight this," said Bill Fielding, Creekstone's chief operating officer. "Within a week we will be taking some action, but we are still trying to determine the best way to go about that."
 
Among the options the company has are a federal lawsuit or lobbying Congress to intercede.
 
Fielding said the Bush administration's decision was "politically motivated" and reflected the opposition of many ranchers and large meatpackers to independent testing.
 
The USDA has denied any outside influence, saying testing is for animal health surveillance and not for marketing purposes.
 
In its letter to the USDA, Creekstone also requested approval to send brain stem samples to Japan for mad cow testing. Brain, spinal cord and other central nervous tissue are believed to be the main carriers of mad cow disease in infected cattle.
 
Creekstone, which had shipped about 20 percent of its beef to Japan, said it was losing more than $200,000 a day in sales. That is double the amount company officials had previously estimated in daily losses.
 
About 50 workers have been laid off, the company said.
 
 
Japan, the top buyer of American beef, has refused to lift its three-month ban on U.S. beef until Washington agrees to test all 35 million U.S. cattle slaughtered annually.
 
The administration insists Tokyo's demands are too costly and not scientifically justified. Mad cow disease, or bovine spongiform encephalopathy, is believed to affect only cattle that are more than two years old, due to a long incubation period.
 
Copyright © 2004 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
 
http://www.forbes.com/markets/newswire/2004/04/14/rtr1331963.html
 


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