(US) Meatingplace.com on recall international trade

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Feb 23, 2008, 9:57:43 PM2/23/08
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LIVE FROM NMA: Schafer says recall a factor in trade negotiations

By Lisa M. Keefe on 2/22/2008 for Meatingplace.com

Monterey, Calif. — Agriculture Secretary Ed Schafer told the Board of
Directors and members of the National Meat Association on Friday that
the consequences of the Hallmark/Westland recall "already have been
greater than we anticipated," and he discussed a number of ways in which
the agency is addressing the issue.

"To other nations, this raises issues of the safety of our food supply
system and a reason to keep their markets closed to us," Schafer said,
addressing the NMA's annual convention here. "The only way to respond to
that is to conduct a thorough investigation, and we will."

In a later press conference, he confirmed that the recall has been a
factor in ongoing negotiations with South Korea and Japan, although it
has not scuttled any issues altogether. He added that he expects to be
able to announce developments in the trade negotiations with those
countries within weeks.

Financial support

The agency also is looking into ways that it might be able to provide
interim financial support for companies affected by the recall. That
support may be in the form of low-interest loans or the like, Schafer
said. The plan is in its earliest stages, and so it is yet unclear what
type of aid may be available, when it may be available, or how companies
could go about applying for it.

Meanwhile, the USDA has terminated its contracts with Hallmark/Westland,
for years a major supplier to several federal food programs. The agency
is totaling up its costs of the recall and has notified the company that
it plans to seek compensation for its financial losses.

Responds to DeLauro

Finally, Secretary Schafer responded to Rep. Rosa DeLauro (D-Conn.), who
earlier this week said there ought to be a separate agency responsible
only for the safety of the food supply. "I have huge confidence in the
USDA," Schafer said. "I can't say a separate agency would do it better."

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