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Calf

USDA Targets Transparency and Competition To Promote Fair and Competitive Markets for Livestock and Poultry

By Food Safety Tech Staff
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Calf

The U.S. Department of Agriculture (USDA) has announced three initiatives that are the first in a suite of major actions under the Biden Administration to create fairer marketplaces for poultry, livestock and hog producers. On May 26, USDA announced a proposed rule that will require poultry companies and live poultry dealers to provide key information contract producers need to make production contract decisions best suited to their businesses. This action is part of a set of significant policy changes USDA is undertaking to achieve the goals of the President’s Executive Order on Promoting Competition in the American Economy.

Second, USDA is seeking input from stakeholders through a separate policymaking action to determine whether the current tournament-style system in poultry growing could be modernized to create a fairer marketplace that allows more producers to participate. And third, USDA released a Competition Report outlining its strategy for enhancing competition in the food and agricultural sectors. With this report, USDA is also announcing plans to complete a top-to-bottom review of programs for alignment with supporting competition and a new review of the most widely used animal-raising claims to help ensure those claims are adequately verified.

“The Packers and Stockyards Act is crucial for protecting farmers and ranchers from excessive concentration and unfair, deceptive practices in the poultry, hog, and cattle markets. But after 100 years, it needs to take modern market dynamics into account,” said Agriculture Secretary Tom Vilsack. “Increased transparency is the essential starting point for modernizing our rules, protecting producers, and countering the damaging effects of concentration.”

“Agricultural Competition: A Plan in Support of Fair and Competitive Markets,” sets out USDA’s strategies to increase competition through investing in new competitors to address major bottlenecks in the food and agricultural supply chains, in particular meat and poultry processing and domestic fertilizer capacity. It also highlights USDA’s efforts to reinvigorate competition and fair market regulation and oversight, including partnering with the Department of Justice to establish farmerfairness.gov, a joint complaints and tips web portal. The report also highlights USDA’s efforts to enhance value-added competitive opportunities for producers, including the already-announced top-to-bottom review of the “Product of USA” label for beef and a newly announced review of animal-raising claims, among many other strategies and efforts.

Under the proposed rule, poultry companies will be required to make certain disclosures to poultry growers with whom they contract to raise birds, to provide current and prospective growers with the accurate information they need to be make informed business decisions and avoid the risks of deception. Specifically, it would require poultry companies to provide a Live Poultry Dealer Disclosure Document that includes information on bird placements, stocking density, prior litigation with poultry growers, prior bankruptcy filings, and payments realized by other poultry growers in prior years broken out by quintiles to reflect a realistic range of outcomes for different growers. Small live poultry dealers, those harvesting less than 2 million live pounds of poultry weekly, would be exempt from the disclosure requirements of the proposed rule.

Additionally, the proposed rule will provide growers who are paid using a poultry grower ranking system with disclosures around the inputs they receive from the poultry company, at time of placement and at settlement. These placement disclosures will improve growers’ ability to monitor issues and to compete on a real-time basis using the inputs they receive. Settlement disclosures—which show the distribution of the inputs, the housing specification, and any feed disruptions for the growers in the tournament—will help growers understand the relative importance of inputs, housing investments, and skills/efforts in tournament outcomes. In doing so, it will prevent deception and help growers plan and improve their ability to compete and deliver positive outcomes.

The proposed rule is being published in the Federal Register and will be available for public comment. It is currently available for review on USDA’s Agricultural Marketing Service website. Stakeholders and other interested parties have 60 days from the date it is published in the Federal Register to submit comments via the Regulations.gov web portal. All comments submitted will be considered as USDA develops a final rule.

The parallel release of an advance notice of proposed rulemaking seeks public input around additional steps USDA can take to ensure the fair operation of those poultry growing contracts. It seeks input on the fairness of the tournament system overall, as well as on additional ways to address concerns relating to specific practices. In the months ahead, USDA also intends to propose rules that provide greater clarity to strengthen enforcement of unfair and deceptive practices, unjust discrimination, and undue preferences and prejudices, as well as address requirements relating to harm to competition under section 202(a) and 202(b) of the P&S Act.

 

Alert

Meat Shortage Threat, Facility Employees Can Still Work After Potential COVID-19 Exposure

By Maria Fontanazza
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Alert

–UPDATE April 29, 2020— Yesterday President Trump signed an executive order to keep meat and poultry processing facilities operational during the coronavirus national emergency. U.S. Secretary of Agriculture Sonny Perdue said the following in a USDA statement, “Maintaining the health and safety of these heroic employees in order to ensure that these critical facilities can continue operating is paramount. I also want to thank the companies who are doing their best to keep their workforce safe as well as keeping our food supply sustained. USDA will continue to work with its partners across the federal government to ensure employee safety to maintain this essential industry.”

–END UPDATE–

As critical infrastructure workers, employees at meat and poultry processing facilities have stayed on the job during the coronavirus crisis. Hundreds have fallen ill and many have died as a result; at least 100 USDA inspectors have tested positive for COVID-19 and at least one inspector has died, according to reports. Production facilities across the country have shut down over the past month, and the threat of a meat shortage is very close to becoming a reality, warns Tyson Foods Chairman John Tyson. “In small communities around the country where we employ over 100,000 hard-working men and women, we’re being forced to shutter our doors. This means one thing—the food supply chain is vulnerable. As pork, beef and chicken plants are being forced to close, even for short periods of time, millions of pounds of meat will disappear from the supply chain,” Tyson stated in a company blog. “As a result, there will be limited supply of our products available in grocery stores until we are able to reopen our facilities that are currently closed.”

Hog and cattle producers are altering rations to slow the growth of livestock. In Iowa, the National Guard was activated to conduct testing and contact tracing of plant workers from Tyson Foods and National Beef Packing Company.

Meat production is on a 25% decline and by the end of this week, America could be entering a meat shortage, according to Dennis Smith, an Archer Financial Services commodity broker and livestock analyst.

Access the COVID-19 Resource CenterProtecting Essential Employees

“To ensure continuity of operations of essential functions, CDC advises that critical infrastructure workers may be permitted to continue work following potential exposure to COVID-19, provided they remain asymptomatic and additional precautions are implemented to protect them and the community,” the CDC’s Critical Infrastructure Guidance states. The agency also notes that screening workers for COVID-19 symptoms is “an optional strategy”.

Meat processing workers are not exposed to COVID-19 through product handling; they can be exposed via close contact with other employees in a facility. The CDC and OSHA have released interim guidance for meat and poultry processing workers and employers that details how communal work environments should be laid out and how employers should be promoting social distancing. Engineering controls include the following:

  • Reconfiguration of workstations to allow employees to be six feet apart, if possible
  • Establishing physical barriers (i.e., plexiglass or strip curtains) to separate workers
  • Working with an HVAC engineer to establish proper ventilation that limits potential exposure to coronavirus; removal of any pedestal or personal fans
  • Setting up handwashing stations or hand sanitizer (60% alcohol) stations
  • Reconfiguring break rooms and other communal areas to promote social distancing

The CDC also recommends that workers wear cloth face coverings that fit over the mouth and nose.

For workers who have experienced COVID-19 symptoms and have self-isolated at home, the CDC advises they do not return to work until they meet specific criteria.

Read the CDC and OSHA interim guidance.

Antibiotics and food safety

California Becomes First State to Ban Antibiotics in Livestock

By Food Safety Tech Staff
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Antibiotics and food safety

Last week California Governor Jerry Brown signed into law a bill that bans the use of antibiotics in meat production. The legislation, SB-27 Livestock: use of antimicrobial drugs, prohibits the administration of antibiotics in livestock unless ordered by a licensed veterinarian via a prescription or veterinary feed directive. As such, the law bans using drugs to promote weight gain or improve feed efficiency.

Several organizations, including the National Resources Defense Council (NRDC), are applauding the legislation. On the NRDC’s blog, senior attorney with the organization’s health program, Avinash Kar, praised the passage of the final bill. “We’ve fought for many years to get the FDA to take genuine action on this issue, but the FDA has basically given the issue lip service and failed to take meaningful action,” wrote Kar.

The legislation, also the most stringent nationwide, goes into effect January 1, 2018. It requires that the Department of Food and Agriculture, in collaboration with the Veterinary Medical Board, the State Department of Health, and other organizations put together antimicrobial stewardship guidelines and best management practices on how to properly use “medically important antimicrobial drugs. The departments would also be required to collect data on the use and sales of these drugs, along with data related to antibiotic resistant bacteria, and livestock management practice data.

Violation in the bill’s provisions will result in a civil penalty of up to $250 for each day the violation occurs, as well as up to $500 in administrative fines for each day the violation occurs.

The use of antibiotics in meat and poultry has been highly controversial for years, as it has been blamed for an increase in antibiotic-resistant infections. In addition, resistant bacteria can be transmitted to humans through the consumption of food. Antibiotic resistance and food safety has been a high priority by the CDC, which estimates that Salmonella and Campylobacter, cause nearly 410,000 antibiotic-resistant infections in the United States annually.