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Transcript of remarks by Agriculture Secretary Ann M. Veneman to the 2004 National Cattlemen’s Beef Association Annual Convention  Secretary Veneman: "Thank you all very much for that warm welcome and good morning.

"And thank you Eric for a very kind and generous introduction. It has been an absolute pleasure to work with you over the past year as you served as president of this organization. And we are looking forward as your transition takes place to working with your next president, Jan Lyons. I offer her my congratulations and best wishes as she assumes her new role.

"And I cannot tell you how much we appreciate working with Terry Stokes and Chandler Keys and all the staff at NCBA. They are great partners particularly as we have worked through the difficulties of the past six weeks or so.

"2003 was a landmark year for American agriculture and for USDA.

"We worked to implement the 2002 Farm Bill quickly and efficiently.
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"Healthy Forests Initiative, which the President signed at USDA headquarters. We appreciate your support of that bill which will bring greater stewardship to our forestlands by reducing fuel loads and decreasing the risks of catastrophic wildfires.

"The Administration has also worked hard to expand markets for agriculture with new trade agreements and the administration continues its actions to defeat terrorists and promote freedom and democracy.

"Last November I traveled to Iraq and Afghanistan where we witnessed the rebuilding of two newly liberated countries. Farmers talked about how grateful they are for our presence there and also about the basic needs of farmers anywhere including education and access to markets, information and technology.

"We also met with the brave men and women of the coalition forces who are helping bring new hope of freedom and democracy to those countries. We were so impressed with their sense of purpose and dedication and they deserve our support, from all of us.

“Closer to home, 2003 was a milestone year for the farm economy. Net cash farm income across all agricultural sectors last year is forecast to be a record $65 billion up 33 percent from 2002 and 15 percent above the 10-year average.

"The success of livestock producers contributed greatly. We saw record cattle prices in 2003. And our food and agricultural exports also posted significant gains in 2003.

"The economy as a whole also continues to strengthen and the President in his State of the Union address, just last week, discussed his agenda to benefit the economy and create jobs.

"Among the things he discussed was the importance of extending the tax cuts, his tax plan, and making permanent the repeal of the death tax once and for all.

"The President also said he wants to make health care more affordable for Americans with options that suit the needs of individuals.

"He is proposing tax-exempt Health Savings Accounts that would help cover the cost of health care tax credits to help lower-income individuals buy coverage and Association Health Plans, which would let industry groups pool their members and provide health care coverage.

"Like many of you I had planned to end 2003 by celebrating a relaxing holiday with my family.

"On December 23rd, my family and I went to the White House. I had with me my 10-year old nephew and we were reading a story, taping it for the White House website to be aired that evening, a Christmas story. We then went on to the White House mess for lunch and I then got a call from my Chief of Staff, who informed me that we had a problem—that we may have BSE.

"At that point our holiday plans took a back seat to the issue at hand. Now, more than five weeks later, the worst-case scenarios fortunately have not played out and the confidence of the U.S. consumer in the safety of American beef remains strong.

"We believe this is due in part to the quick and aggressive steps the Administration has taken to protect public health.

"And I know this has been a top priority for NCBA and all of your officers, your staff members.

"NCBA is to be commended for making experts in your organization available to the media to help explain BSE to the American public and the strong steps that the U.S. has taken since the discovery.

"As you know, USDA has had an aggressive BSE surveillance, detection and response plan in place since 1990.

"That plan has continually evolved along with our knowledge of BSE. As part of that plan, we immediately began a trace-back of the index cow and a trace-forward of all the products.

"On December 30th, just one week after the BSE find, I announced further enhancements to our already strong safeguards that protect the public health and animal health, and maintain consumer confidence.

"These included an immediate ban on downer cattle from the food system and further restrictions on specified risk materials from entering the food supply.

"We announced a “test and hold” policy for meat from cattle that are tested for BSE until a negative test result is returned.

"We also announced that we are expediting the implementation of a verifiable system of national animal identification.

"Our goal is a nationwide system that is uniform, consistent, and efficient. We appreciate the support and encouragement that we have received from NCBA and others regarding these policy changes.

"The prior work that has been done on standards for a national animal identification is a good start as we begin implementation. We are taking current identification systems into account and we are considering what will be the appropriate architecture to meet the needs of various users in all parts of the country and across the food chain.

"We also want to ensure that we have a system that keeps pace with technology advancements.

"On Monday of this week the Food and Drug Administration announced further safeguards to its animal feed regulations, which will enhance public health and further protect against the potential spread of BSE.

"As we look to refine our BSE response, I also announced on December 30th that an international review team of scientific experts would examine our investigation and recommend possible additional actions.

"This team was in the U.S. last week and they are now in the process of drafting their report to us.

"Although we are still in the early days of implementing many of our policy enhancements, President Bush is committed to ensuring that we have the resources that we need to carry out our BSE response, prevention and surveillance plans.

"That is why I am pleased to announce today that the President’s Budget for Fiscal Year 2005, which will be formally announced on Monday, will proposed increased funding for BSE related activities.

"The President’s request for BSE related activities will total $60 million, a $47 million increase over the current year.

"The funding will include funds for a national animal identification system increased monitoring and surveillance for BSE in animals and to ensure that specified risk materials do not enter the food supply, advanced research and development of testing technologies and rapid-response teams to deal with BSE-related complaints in the cattle market regarding contracts or lack of prompt payment.

"In addition, we are considering a proposal to transfer emergency funds from the Commodity Credit Corporation (CCC) to help finance these activities in the current fiscal year including for animal identification.

"Last fall, we transferred $10.5 million from CCC to USDA’s Animal and Plant Health Inspection Service to double our BSE testing in cattle for Fiscal Year 2004--from 20,000 tests to 40,000 tests.

"A crucial part of our BSE response is research and diagnostics.

"As you know, we have world-class scientists in Ames, Iowa, who conduct this work at the National Centers for Animal Health in addition to a broader agenda that includes TSEs and other animal diseases.

"It was our National Veterinary Services Laboratory, which is part of the Ames complex that diagnosed the case of BSE in the single cow from the state of Washington.

I recently traveled to Ames where I also announced that the President’s budget proposal for Fiscal Year 2005 will include funding for modernizing those facilities.

"In fact, this funding was planned well before December 23rd.

"That request of $178 million would represent the final installment of the $460 million needed to complete the renovation, which is the largest single infrastructure project ever undertaken by USDA.

"Those funds if approved by Congress will make Ames the most modern and best-equipped animal disease research and diagnostics facility in the world.

"Since the BSE find in the United States, restoring our export markets has been a top priority. Most of our key buyers including Japan and Mexico and Korea and others immediately closed their markets to U.S. beef after December 23rd.

"Export markets accounted for about 10 percent of our total domestic production. The loss of those markets had an immediate impact on the cattle market, resulting in an initial drop of between 15 to 20 percent in cattle prices on cash and futures markets. However, prices have strengthened in recent weeks and markets are now down to only about 7 to 8 percent from the levels prior to the BSE finding, with current cattle prices above year-ago levels.

"We appreciate that Poland became the first nation to resume imports while both Canada and the Philippines have continued to allow at least a portion of their markets to remain open to our beef.

"Within days of the finding, we dispatched a delegation to Japan and South Korea to explain our investigation and rigorous BSE standards.

"I had follow-up discussions with my counterpart in Japan and a second delegation from USDA and the Food and Drug Administration led by J.B. Penn, our undersecretary for Farm and Foreign Agricultural Services just returned from Japan, the Philippines, Hong Kong and South Korea. These meetings were encouraging and they are a key step in our efforts to resume trade.

"We expect to engage in more discussions with Japan in coming days.

"Earlier this month, both Ambassador Zoellick and I met with the Japanese trade minister. I each had very encouraging meetings with the Japanese trade minister and discussed this issue. .

"Ambassador Zoellick has been fully engaged in this issue and we are working closely together in discussions with our trading partners. He will travel to Japan in early February where beef exports will be high on his agenda.

"We’ve also had a team visit China to explain our response actions.

"I have continued to have frequent conversations with my counterparts both in Canada and Mexico. And earlier this month, I hosted a meeting that included both Secretary Usabiaga from Mexico and Minister Speller from Canada to discuss enhanced coordination to BSE issues in North America.

"Two of our undersecretaries, Dr. Penn and Bill Hawks, both traveled to Mexico to discuss these issues and Mr. Hawks will again be in Mexico next week.

"In addition, we had technical teams from Mexico and Japan in the U.S. for several days, meeting with experts at USDA and the Food and Drug Administration, with another Mexican delegation visiting this week.

"Restoring foreign beef markets is important because of the economic impact of reduced exports.

But it is also vital that the international community deal with BSE issues that relate to trade in a more consistent way, into the future.

"The United States is taking a leadership role in these efforts.

"Along with Canada and Mexico, we have urged the World Organization for Animal Health (OIE) to clarify its guidelines regarding trade among countries in BSE.

"This is usually called the OIE. And this is so that science guides the actions of all nations. We expect the OIE to issue updated guidance on BSE in the spring.

"Strong evidence indicates that countries can safely resume trade with other countries that have even a moderate risk of BSE if the appropriate risk-mitigation steps have been taken.

"One thing that’s been vital throughout the response to BSE has been consumer education and ensuring that the public has accurate and timely information.

"An important consumer education and marketing tool is the beef check-off. As you know, in June of 2002, a U.S. District Court in South Dakota struck down this program. The United States appealed that decision to a panel of the U.S. Eighth Circuit Court of Appeals, which this past July upheld the District Court’s ruling.

"In October, the Eighth Circuit rejected the government’s petition for a rehearing by the full Circuit Court.

"At the government’s request, the court agreed to delay enforcement of its ruling to permit the program to continue operating while the government decided whether to seek a review of by the U.S. Supreme Court.

"I am very pleased to report to you today that the government has made its decision and the Solicitor General has authorized a petition asking the Supreme Court to review and decide this case.

"The petition on that case is due to be filed by February 13th.

"2003 has been a very busy year and we expect that 2004 will be a busy one as well as we work to implement President Bush’s agenda.

"It is an honor for me to serve in the Cabinet of a President who is so passionate about our land and the people who work on it for a living.

"When many of our closest allies visit the U.S. a special highlight is when the President gives them a tour of his Prairie Chapel Ranch in Crawford, Texas. Prairie Chapel is aptly named because it is a place where the President draws strength, cutting trails, repairing fences, clearing brush, maintaining pastures and conserving the natural beauty of the surroundings.

"American cattle producers have known this kind of good stewardship for centuries and you continue to symbolize the dedication and character and that make our country great.

"Thank you very much. God Bless you, and God Bless America."

USDA News
oc.news@usda.gov
202 720-4623






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