MU Economist Analyzes Market Impact of Mad Cow Disease

7 years 11 months 1 week ago Friday, April 27 2012 Apr 27, 2012 Friday, April 27, 2012 7:48:43 AM CDT April 27, 2012 in News
By: University of Missouri

COLUMBIA - Mad cow disease is much less scary to beef consumers than it was when the first case in the U.S. was found almost a decade ago.

New regulations and time have dulled the market impact of the disease as the USDA on April 24 confirmed a case of bovine spongiform encephalopathy (BSE) at a California dairy farm, said Ron Plain, a University of Missouri Extension economist. It was the first recorded case of BSE in the U.S. since 2006.

"Each new case seems to have slightly less impact than the previous occurrence," Plain said. "There will be a negative impact, but it doesn't appear that it will be that large or last as long as previous ones."

Futures markets took a hit Tuesday with the USDA's announcement but had regained 40 percent of those loses as markets closed Wednesday. Slaughter steer prices stood at $1.20 per pound as of April 26.

BSE, also known as mad cow disease, is a neurological disorder in cattle. First discovered in Europe in the 1980s, it spread when beef byproducts from infected cattle were ground up and fed back to cattle. The USDA and FDA banned that practice in 1997.

After the first U.S. case in 2003, the USDA strengthened rules to keep BSE-infected cattle from entering the food supply. Nervous system tissue - the brain, spinal cord, significant nerves and tonsils - was banned from being used in food in 2004 by USDA's Food Safety and Inspection Service. These tissues are more likely to carry BSE.

More stringent restrictions also keep higher-risk cattle from entering the food supply. Federal or state inspectors visually observe all live cattle before they become anyone's meal.

"They observe all cattle for illness and are specifically looking for any signs of central nervous system disorders when it comes to BSE," said Bryon Wiegand, an MU meat scientist. "Cattle showing any signs of illness are held out of the food chain until a diagnosis can be confirmed and their safety determined. In addition, any cattle that cannot stand are not permitted into the food chain."

Testing offers a final line of defense. The USDA samples nearly 40,000 cattle per year from farms, veterinary diagnostic labs, public health labs, processing plants, veterinary clinics and livestock markets. One of these samples found the current case of BSE at a dairy in California.

BSE risk remains extremely low. According to a 2006 USDA study that evaluated seven years of testing, less than one case of BSE exists per 1 million adult cattle. Analysis of that data found the likely number of cases is four to seven infected animals out of 42 million cattle.

The U.S. food supply appears to remain unscathed by the disease.

"No sample of beef or milk from the United States has been ever been found to contain BSE," Wiegand said. "Human and animal health experts agree that in the U.S., both beef and milk are safe to consume."

With each identified case of BSE, public alarm has decreased and so has the market downturn in the aftermath. After the first occurrence of BSE in the U.S., the beef industry lost $3 billion in exports in 2004. Exports dropped from about 2.52 billion pounds per year to only 460.3 million pounds after the announcement.

Plain says this time the impact on beef sales likely won't last long.

"It was a huge market impact when mad cow disease was found in the U.S. in 2003. Cattle prices dropped six days in a row and we lost 18 cents per pound off prices," he said. "Each subsequent case has had less impact than the first one. More than anything, this outbreak reminds people just how few cows in the U.S. are infected with BSE."

More News

Grid
List
KOMU 8's Emily Spain talked with Dr. Christelle Ilboudo about recovering from COVID-19 and when it's safe for people with... More >>
2 hours ago Tuesday, April 07 2020 Apr 7, 2020 Tuesday, April 07, 2020 7:53:00 PM CDT April 07, 2020 in News
ASHLAND – Thanks to a community grassroots effort, dozens of local medical workers on the frontlines of the COVID-19 pandemic... More >>
2 hours ago Tuesday, April 07 2020 Apr 7, 2020 Tuesday, April 07, 2020 6:55:00 PM CDT April 07, 2020 in News
JEFFERSON CITY - Essential workers are continuing to change their usual routines in order to keep people safe during the... More >>
3 hours ago Tuesday, April 07 2020 Apr 7, 2020 Tuesday, April 07, 2020 6:00:00 PM CDT April 07, 2020 in News
COLUMBIA - Documents show the Columbia/Boone County Public Health and Human Services Department is looking for a facility to contract... More >>
3 hours ago Tuesday, April 07 2020 Apr 7, 2020 Tuesday, April 07, 2020 5:58:00 PM CDT April 07, 2020 in News
COLUMBIA - If you ask Andrew Grabau, the nonprofit sector was built to help out in times of need. ... More >>
4 hours ago Tuesday, April 07 2020 Apr 7, 2020 Tuesday, April 07, 2020 5:30:00 PM CDT April 07, 2020 in News
COLUMBIA - People around the country are facing new realities and, in some cases, a new virtual reality. Since... More >>
5 hours ago Tuesday, April 07 2020 Apr 7, 2020 Tuesday, April 07, 2020 3:57:00 PM CDT April 07, 2020 in News
COLUMBIA - Boone County deputies say they are investigating a death after a man's body was found in Perche Creek,... More >>
6 hours ago Tuesday, April 07 2020 Apr 7, 2020 Tuesday, April 07, 2020 3:49:00 PM CDT April 07, 2020 in News
COLUMBIA - The Columbia Fire Department was dispatched to a residential structure fire at 903 Jefferson Street at 12:43 p.m.... More >>
7 hours ago Tuesday, April 07 2020 Apr 7, 2020 Tuesday, April 07, 2020 2:51:00 PM CDT April 07, 2020 in News
COLUMBIA — As state and commercial testing is more available for the Missourians, the number of confirmed cases is rising.... More >>
7 hours ago Tuesday, April 07 2020 Apr 7, 2020 Tuesday, April 07, 2020 2:20:00 PM CDT April 07, 2020 in News
JEFFERSON CITY- The state senate was back in session on Tuesday morning to consider bills covering the governor’s request for... More >>
8 hours ago Tuesday, April 07 2020 Apr 7, 2020 Tuesday, April 07, 2020 1:07:00 PM CDT April 07, 2020 in News
CALLAWAY COUNTY — Prosecutors filed charges in late March against a man suspected of abandoning a corpse in Callaway County... More >>
8 hours ago Tuesday, April 07 2020 Apr 7, 2020 Tuesday, April 07, 2020 1:02:00 PM CDT April 07, 2020 in News
COLUMBIA - Palen Music Center was one of many businesses impacted two weeks ago by Columbia’s stay-at-home order. After the... More >>
9 hours ago Tuesday, April 07 2020 Apr 7, 2020 Tuesday, April 07, 2020 12:47:00 PM CDT April 07, 2020 in News
MIAMI (AP) — Until a month ago, Diana Leticia Hernández sold face cream door to door in Miami. Her husband... More >>
9 hours ago Tuesday, April 07 2020 Apr 7, 2020 Tuesday, April 07, 2020 12:24:00 PM CDT April 07, 2020 in News
CALLAWAY COUNTY - Working from home might cause stress if you don't have access to Wi-Fi. But early this month,... More >>
9 hours ago Tuesday, April 07 2020 Apr 7, 2020 Tuesday, April 07, 2020 12:17:00 PM CDT April 07, 2020 in News
As COVID-19 spreads, KOMU 8 will continue to update you about the impacts on the community. KOMU 8 News... More >>
12 hours ago Tuesday, April 07 2020 Apr 7, 2020 Tuesday, April 07, 2020 9:18:00 AM CDT April 07, 2020 in News
ST. LOUIS COUNTY (CNN) - The Ferguson-Florissant school district in Missouri has suspended the home delivery of meals to students... More >>
14 hours ago Tuesday, April 07 2020 Apr 7, 2020 Tuesday, April 07, 2020 7:52:00 AM CDT April 07, 2020 in News
Two insurers -- Allstate and American Family Insurance -- announced Monday they will give back about $800 million to their... More >>
22 hours ago Monday, April 06 2020 Apr 6, 2020 Monday, April 06, 2020 11:49:00 PM CDT April 06, 2020 in News
KOMU 8's Emily Spain talked with registered dietitian Jennifer Tveitnes Monday about how to handle stress eating and keep eating... More >>
1 day ago Monday, April 06 2020 Apr 6, 2020 Monday, April 06, 2020 9:37:00 PM CDT April 06, 2020 in News
Columbia, MO
Broken Clouds 74°
10pm 71°
11pm 69°
12am 66°
1am 65°