Food Safety Issues; Biotech; Biofuels; Ag Economy; and Political Notes

    Posted By Keith Good On September 2, 2010 



Food Safety Issues

Alicia Mundy reported yesterday at The Wall Street Journal Online that, “The criminal division of the Food and Drug Administration and the Justice Department have joined the probe of the Iowa farm at the heart of the recent egg recall linked to an outbreak of salmonella, according to FDA Commissioner Margaret Hamburg.

“‘There is a formal investigation going on that extends beyond the FDA inspections that are focused on farm practice,’ Dr. Hamburg told reporters Wednesday. ‘It is the case that an investigation is under way. We are pursuing it with our partners in law enforcement.’”

The Journal article added that, “FDA spokeswoman Pat El-Hinnawy said Wednesday that federal agents visited both Wright County Egg and Hillandale Farms, the second producer involved in the recall, on Tuesday.”

“Wright spokeswoman Hinda Mitchell said FDA officials were at Wright on Tuesday, and she said she believed FBI agents were also present. A Justice Department spokeswoman declined to comment.”

And Philip Brasher reported yesterday at the Green Fields Blog (Des Moines Register) that, “FDA inspectors are investigating the Minnesota rendering operation that supplies an ingredient used in hen feed at the Iowa egg farms linked to the national salmonella outbreak.

“Central Bi-Products, part of Farmers Union Industries, produced meat and bone meal that tested positive for salmonella at a feed mill operated by Quality Egg LLC in Galt, Ia.

Mr. Brasher noted that, “Don Davis, the president and CEO of Farmers Union Industries, said today that FDA inspectors visited his offices in Redwood Falls on Tuesday and are now looking over the rendering plant in Long Prairie that produced the bone meal. ‘They ask a lot of questions, take a lot of notes,’ he said.

“He said he’s confident the bone meal was free of salmonella bacteria or other pathogens when it left his company.”

Meanwhile, Alicia Mundy and Bill Tomson reported in today’s Wall Street Journal (“Eggs’ ‘Grade A’ Stamp Isn’t What It Seems”) that, “The mark on the carton [the ‘USDA Grade A’ shield] just means that the U.S. Department of Agriculture had a ‘grader’ at an egg-packing facility who checked the eggs’ size and color and made sure the shells weren’t cracked, a USDA official said. Consumers ‘misunderstand’ the shield, he said.

“Ever since the recent nationwide salmonella outbreak sickened more than 1,000 people and led to the recall of more than a half-billion eggs, USDA officials have stressed that ensuring egg safety isn’t their job. That task, they say, belongs to the Food and Drug Administration, which said Wednesday it is getting help from its criminal division and the Justice Department in looking at the farms at the center of the recall.

So what’s the point of stamping egg cartons as Grade A? The USDA has two different missions. It does regulate some food safety, especially with meat, but it’s also responsible for promoting American food here and abroad. The egg shield comes from the USDA’s marketing side.”

The Journal article stated that, “Democratic Rep. Rosa DeLauro of Connecticut is one lawmaker who has long maintained that the government should have a single agency devoted to food safety. But that idea has roused opposition from some in the industry who fear creating a new agency would add more bureaucracy.

“‘The USDA stamp should have a clear and consistent message to consumers—not a stamp of quality assurance that may be misinterpreted as a stamp of safety,’ said Ms. DeLauro.”

In related developments, Meredith Shiner reported yesterday at Politico that, “Victims of foodborne illness and their family members are set to descend on the Capitol next week to lobby Senate offices to pass a stalled food safety bill.

“Food safety activists — energized by a massive salmonella outbreak and the recall of more than a half-billion eggs — have launched a media blitz, circulating a video of Majority Leader Harry Reid (D-Nev.) promising a 12-year-old girl in October 2009 that the Senate would ‘do everything we can to get this legislation,’ which is designed to improve food safety, ‘done.’ The bill was approved by the House in July 2009.”

But fulfilling that promise, given the Senate’s tight schedule when it returns from recess Sept. 13, remains difficult. Though the egg recall has exposed the flaws in a nearly century-old food regulatory system, logistical realities on the Hill make it highly improbable that the president will receive a bill to sign in the near future,” yesterday’s Politico article said.

The recent egg safety issue has been an impetus for some observers to extend the public discussion on food safety concerns to include a critique of general agricultural production practices.

For example, Nicholas D. Kristof opined in today’s New York Times that, “Inspections of Iowa poultry farms linked to the salmonella outbreak have prompted headlines about infestations with maggots and rodents. But the larger truth is: industrial agriculture is itself unhealthy.

“Repeated studies have found that cramming hens into small cages results in more eggs with salmonella than in cage-free operations. As a trade journal, World Poultry, acknowledged in May: ‘salmonella thrives in cage housing.’

“Industrial operations — essentially factories of meat and eggs — excel at manufacturing cheap food for the supermarket. But there is evidence that this model is economically viable only because it passes on health costs to the public — in the form of occasional salmonella, antibiotic-resistant diseases, polluted waters, food poisoning and possibly certain cancers. That’s why the president’s cancer panel this year recommended that consumers turn to organic food if possible — a stunning condemnation of our food system.”

Recall, however, that Rod Smith reported earlier this week at Feedstuffs Online that, “As the egg recall related to salmonella-contaminated eggs from two farms spread over the Aug. 21-22 weekend, so did allegations that eggs from big, cage-housing operations are prone to the bacteria.

Nothing is further from the truth, according to Feedstuffs sources. Salmonella can contaminate any animal- or plant-based food from any kind or size of farm operation, and the last major incident in which eggs and salmonella were linked was two years ago in eggs from a cage-free, organic production system, sources noted.”

Mr. Smith indicated that, “However, scientists and veterinarians, in a paper released to Feedstuffs, said there are advantages and disadvantages to all hen housing types and suggested several benefits to modern cage housing.”

***

In a more general analysis of issues associated with small-scale local food production, that touched on food safety concerns, Monica Eng reported today at the Chicago Tribune Online (“Food fights: Locavores, conventional food fans battle over benefits”) that, “Thomas Stern is an unabashed locavore, buying everything from beets and basil to lamb and legumes from nearby producers.”

That philosophy — to try to source food from a within a 100- to 300-mile radius — is fueling ‘eat local’ initiatives across the country. These include Green City Market’s annual ‘Locavore Challenge,’ where hundreds of Chicago-area residents are expected to follow a mostly local diet from Wednesday to Sept. 22.

While such efforts might seem innocuous, a growing chorus of writers, politicians and bloggers is challenging the locavore movement, painting it as naive and elitist at best and dangerous to the livelihood of conventional commodity farmers at worst.”

The Tribune article indicated that, “In a hotly debated New York Times op-ed column last month, historian Stephen Budiansky attacked ‘locavore math,’ questioning the movement’s assumptions about the energy used to grow and transport produce.

“And economist Hiroko Shimizu and University of Toronto geographer Pierre Desrochers are finishing a 2011 book, tentatively called ‘In Praise of the 10,000 Mile Diet,’ that argues locavorism is a misleading marketing fad that, among other problems, ignores the threat it poses to the current affordability of food and to the economic health of developing countries.”

Today’s article stated that, “Locavores respond to the claims of elitism by citing the thousands of people across the country who use food stamps at farmers markets — the Daley Plaza market recently took in $890 of food stamps in a day.”

Other local food fans point to huge food recalls — most recently a half a billion eggs from Iowa factory farms — as a reason to choose small-scale, locally produced food,” the Tribune article said.

***

And in other news regarding agricultural production methods and health, an update posted earlier this week at the Competitive Enterprise Institute Online stated that, “The Competitive Enterprise Institute submitted comments today on an FDA proposal to limit the use of certain antibiotics in livestock, warning that a ban could unintentionally increase the threat of foodborne illness in the United States. [Note: For additional background on the FDA proposal, click here and here].

“The FDA draft guidance would prohibit the use of ‘medically important’ antibiotics for growth promotion in food-producing animals such as cows, pigs, and chickens, and would require veterinary oversight for remaining uses. In its commentsCEI warned that ‘uses of these drugs for growth promotion reduces pathogen loads in animal-derived foods and have a positive impact on human safety, so such restrictions could do more harm than good.’

“Antibiotics use in livestock has been criticized by the public health community due to concerns that it contributes to the development of antibiotic resistant bacteria. However, U.S. government studies indicate that livestock uses account for only about 10 percent of the problem with resistant bacteria and that misuse in human patients is the leading cause of antibiotic resistance.”

 

Biotech Issue- Sugar Beets

DTN Ag Policy Editor Chris Clayton reported yesterday (link requires subscription) that, “Responding to a federal court decision last month rejecting the deregulation of Roundup Ready sugar beets, USDA announced some steps to comply with the court, including continued work on an environmental impact statement for the genetically engineered crop.

“USDA said it intends to ‘expedite’ that EIS, but that it could take at least two years to do so.

“A federal judge ruled in mid-August that USDA had improperly deregulated Roundup Ready sugar beets by not properly conducting an environmental impact statement before approving the crop, a violation of the National Environmental Policy Act. Nonetheless, while a lawsuit brought by environmentalists went through the court system, USDA allowed continued expansion of Roundup Ready sugar beet planting, which this year accounted for 95 percent of the 1.185 million acres of sugar beets planted nationally.”

Mr. Clayton added that, “A second step announced Wednesday is that APHIS [USDA's Animal and Plant Health Inspection Service] is evaluating a request to partially deregulate Roundup Ready sugar beets. The agency is working on an environmental analysis of allowing ‘future seed and root crop plantings under a combination of permits, administrative orders, or other regulatory measures,’ USDA stated.

The department added that regulatory measures taken would include mitigating restrictions consistent with those proposed by the federal court as interim measures while APHIS completes the environmental impact statement.”

In a statement released yesterday, Rep. Earl Pomeroy (D-ND) indicated that, “‘In a conversation yesterday with the U.S. Department of Agriculture Secretary Vilsack, I made it clear that this court ruling could have a major impact on the livelihood of sugar beet producers in the Red River Valley,’ said Congressman Pomeroy. ‘The Secretary understands what this means for our producers, and I applaud him for taking action to implement temporary measures to help producers while they continue work on the full Environmental Impact Statement for Roundup Ready Sugar Beets.’”

 

Biofuels

Bloomberg writer Mario Parker reported yesterday that, “For the first time since December, ethanol prices are higher than gasoline as corn surges and refiners profit from tax breaks.

“The alternative fuel jumped 22 percent since the U.S. driving season began in May, rising above gas, which has fallen 6.5 percent in the same period. Ethanol as a gasoline component rose 6.1 percent since early June to 799,000 barrels a day in the week ended Aug. 27, Energy Department data show. It touched a record 810,000 barrels in the week ended Aug. 20.”

The article noted that, “Ethanol may continue to rally as corn, a main feedstock for the fuel, rose to a 14-month high of $4.4675 a bushel today on speculation U.S. grain demand will increase after Russia halted exports amid its worst drought in half a century.”

Yesterday’s update pointed out that, “Demand may also be stifled should the U.S. Environmental Protection Agency ban blends of as much as 15 percent of ethanol in gasoline should it determine that higher concentrations could damage engines in vehicles, lawnmowers or boats. The EPA said June 17 it may decide whether to permit so-called E-15 in vehicles made after 2007 this fall.

The U.S. House Ways and Means Committee is considering cutting the ethanol tax incentive by 20 percent while preserving a tariff that limits foreign imports. Shipments from Brazil, where ethanol is made from sugar cane, are subject to a 54-cent penalty under current rules.”

 

Ag Economy

Tom Polansek and Caroline Henshaw reported in today’s Wall Street Journal that, “Wheat prices are heating up again as the U.S. gains favor among the world’s biggest consumers of the grain [related graph].

The U.S. recently has gotten the upper hand against France. Sellers in the two nations have been locked in a battle for the markets ceded by drought-stricken Russia.

“Wheat prices have skyrocketed this summer as record heat and wildfires have forced Russia to cede its slice of internationally traded grain markets. That has allowed the U.S. and other nations with relatively robust harvests to step in.”

The article stated that, “The U.S. scored a victory Wednesday as Egypt, the world’s top wheat importer, struck deals to buy a hefty 225,000 metric tons from U.S. sellers at prices about 5% higher than a month ago.

Egypt said it wasn’t interested in French wheat this time around after looking to France in its two previous tenders. France mainly grows ‘soft’ wheat, which is used for pastries but not suited for breads.”

And the Journal writers added that, “A German miller gave the U.S. another boost by buying U.S. hard wheat—a high-quality variety—for the first time in three years as persistent rains batter Germany’s crop at harvest time. German buyers had been snapping up French wheat but were forced to look to the U.S. after French prices hit three-week highs, traders said.

“Countries around the world are scrambling to secure wheat after a severe drought slashed output in Russia, traditionally a major producer, and pushed the government to ban grain exports for the rest of the year. Dryness in Australia and Argentina, also key producers, and the precipitation in Germany has exacerbated importers’ fears about tightening global supplies.”

 

Political Notes

Neil King Jr. reported in today’s Wall Street Journal that, “The Cook Political Report, a newsletter that tracks congressional races, now lists 68 Democratic House seats as being at ‘substantial risk,’ up from 62 in July and 58 in June, and the group plans to raise the figure to more than 70 this week. Other pollsters and analysts have also increased their list of Democrats they now consider imperiled. By comparison, less than 10 Republican-held seats are thought to be in jeopardy.”

Meanwhile, Derek Wallbank reported yesterday at MinnPost.com (“Collin Peterson’s inconvenient truth-telling — and savvy political moves”) that, “Several Democrats in districts just like his [House Ag Comm. Chairman Collin Peterson (D-Minn.)] are vulnerable this year. Next door in both the Dakotas sit Reps. Earl Pomeroy (North) and Stephanie Herseth Sandlin (South), who both trail in the polls against GOP challengers.

So far, however, GOP challenger Lee Byberg hasn’t gained much traction against Peterson. The most recent campaign finance reports filed (through July 21) showed Byberg trailing Peterson in cash on hand by a margin of 29:1. Every national ratings group rates the 7th as a safe Democratic seat.”

And the AP reported today that, “Former President Bill Clinton is coming to the aid of endangered Democratic Sen. Blanche Lincoln.

“Clinton, who served as Arkansas governor, will headline an event celebrating Lincoln’s one-year anniversary as chairwoman of the Senate Agriculture Committee. Lincoln’s campaign announced Wednesday that Clinton will join her in Little Rock on Sept. 8.”

Clinton returned to his home state earlier this year to campaign for Lincoln as she waged a difficult primary battle against Lt. Gov. Bill Halter. The former president also was featured in campaign ads for Lincoln during the primary.”


--
Keith Good
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FarmPolicy.com, Inc.
Champaign, IL

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