Saturday, December 27, 2008

Mexico Halts Meat Purchases From 30 U.S. Plants, Including Top Processors

Mexico suspended meat imports from 30 processing plants in 14 U.S. states, including some of the nation's largest, on Wednesday and Friday, according to a list posted on the U.S. Department of Agriculture Web site. The action pushed down beef and pork futures in trading on the Chicago Mercantile Exchange on Friday. USDA spokeswoman Amanda Eamich said in an e-mail that Mexico had discussions over the last five business days with the agency regarding concerns about the general condition of meat products, sanitation issues and "possible pathogen findings." "Occasional differences in shipments in trade relationships do occur and allow for the option of notifying specific plants of suspension of those shipments," she said. Among the plants listed on the site are the Smithfield Packing plant in Tar Heel, N.C., the world's largest pork slaughterhouse. Another Smithfield plant in Plant City, Fla., that processes pork, beef and poultry is on the list, along with three plants operated by subsidiary John Morrell & Co., two in South Dakota and one in Iowa, a Nebraska pork plant run by subsidiary Farmland Foods and a Pennsylvania beef plant run by its Moyer Packing unit. Six operations run by Tyson Foods in Iowa, Texas and Nebraska also are on the list. Tyson spokesman Archie Schaffer III said the company had no prior warning from Mexico about the ban and only learned of it when shipments were turned aside at the border Wednesday. The ban could greatly affect the company, as high feed prices already have strained its profits. Mexico represented 23 percent of its $3.8 billion of international sales in 2008, according to company statistics. "No information or explanation was given," Schaffer said. "We're going to be working beginning Monday" to restore trade. Attempts to reach representatives at Smithfield and Swift were unsuccessful. According to published reports, the suspensions may be in retaliation for the United States putting a country-of-origin labeling law into effect on Oct. 1 in response to concerns about the safety of imports. Last week, Mexico joined Canada in opposing the law, which involves fresh beef and pork, in a complaint to the World Trade Organization. Canada filed its complaint Dec. 1, saying it was concerned the U.S. rules were discriminating against Canadian agricultural exporters. The country-of-origin labeling law mandates the separation of foreign cattle and pigs in U.S. feedlots and packing plants. Foreign animals also are required to have more documentation about where they come from and, in the case of cattle, must have tags that indicate they are free of mad cow disease. Canadian farm groups say a growing number of meat plants in the United States are refusing to accept Canadian cattle and hogs for processing since the law went into effect.

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