Post-BSE in the U.S. It's 'business as usual' in Texas

By JULIET BRISKIN | Staff writer

January 15, 2004 -- Despite the frightening predictions and horror stories from foreign countries with "mad cow disease," the recent discovery of a single cow in Washington state with bovine spongiform encephalopathy (BSE) has not caused much more than a ripple in the Texas beef industry. Across the state, industry leaders are taking an initial sigh of relief while beef consumers are proving to be more knowledgeable about the disease and how it is transmitted than previously thought.

"We went to the Texas Roadhouse steak house in Waco the other night for dinner and you couldn't get a table it was so packed," stated Adele Uptmore, president of the Livestock Marketing Association of Texas and owner of the West Auction Barn. "I asked the manager if their beef sales have fallen off at all and she said absolutely not."

Uptmore went on to explain she believes the beef industry in the United States is in a very positive situation right now. "Canada's situation was so bad because they exported the majority of their beef. We (the United States) consume most of our beef," stated Uptmore. "Yes, there will be changes in the beef industry but many of these changes will be for the best."

For some producers the big question is whether to sell their cattle now or wait to see how the market reacts. Keith Chapman, regional executive officer of the National Livestock Marketing Association (NLMA), suggests visiting an auction barn and see what prices are doing before deciding whether or not to sell.

"If you want to know what is going on in the market you need to go over to your local livestock auction," he said. "That is where true price discovery takes place. The sales that we have had have been packed with people wanting to know what the prices are going to be. "

According to Billy Perrin, president of the NLMA, "things are pretty much business as usual."

In a Jan. 5 phone interview, Perrin explained the market appears to be about the same as it was before they shut down for the holidays. "We consume most of the beef we produce and things look like they are going to be just fine," he stated. "Our beef is safe and the consumer knows that."

NLMA Director of Information John McBride explained there is a bottom in the market now, stability is returning and futures are steadily coming back.

"As far as whether to sell or not, it really is the individual producer's decision based on a lot of factors," McBride said. "Are the cattle ready for sale? If you hold them you've got to feed them. Everything that we are seeing shows that consumers are still buying beef and there just hasn't been a backlash against beef in this country. I think Americans know that we have the safest beef supply in the world."

Over the next few months, three of the state's largest livestock shows and rodeos will take place. Stefan Marchman, livestock manager for the Southwestern Exposition Livestock Show and Rodeo in Fort Worth, which begins on Jan. 17, is expecting a total livestock entry of 22,000 to 23,000 head. "I don't have a total on the cash cattle entries yet, but we haven't had a single cancellation," stated Marchman. "Things are going along just like they did last year."

Houston Livestock Show and Rodeo officials said they are well aware of the discovery of BSE or "mad cow disease" in Washington state and they will continue to monitor the situation, but they do not foresee any impact on their March event or the Texas cattle industry. A written statement from the media relations department explained that all animals brought to the Houston Livestock Show must arrive with health certificates and will be inspected upon arrival.

Jake Wells, a veterinarian and president of the executive committee for the San Antonio Livestock Show and Rodeo, stated they have not received a single call expressing concern over BSE.

"Our biggest concern is what this may do to the cattle market and how it might effect our junior livestock options, but really we don't expect any problems," said Wells. "We are isolated from the BSE in Washington state by a lot of geography and by the actual nature of the disease and how it is transmitted."

In phone calls to steak houses from Dallas to San Antonio the response was the same. Reservations continue to be booked, Texans are still waiting in line for a table at their favorite dinner spot and over all it is business as usual.