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USDA to Notify Industry of Mad Cow Test Results Before Public

Strategic Insights

— 1 min read

The U.S. Department of Agriculture plans to notify meat industry officials of positive mad cow test results at least an hour before informing the public, according to a leaked meat industry newsletter. This revelation comes as government officials face investigation for possible leaks of information about the first U.S. mad cow case in December, which was announced to commodity traders before the public was informed. The USDA has launched an expanded surveillance program, but consumer groups object to the plan, citing potential insider trading.

Key Takeaways:

  • The USDA plans to notify industry officials of positive mad cow test results at least one hour before informing the public.
  • The agency's expanded surveillance program initially screens cows with a rapid test, which can yield false positives.
  • Those false positives are categorized as inconclusive until confirmed by additional tests.
  • Consumer groups object to the plan, citing potential insider trading and the agency's favoritism towards the industry over the public.
  • The USDA has had six months of closed-door meetings with industry representatives, but has not held a single public meeting.
  • The agency's plan to notify plant personnel first may facilitate insider trading, and the timing of the notifications after the U.S. cattle futures market close may not prevent it entirely.

*Felicia Nestor, senior policy analyst for the Government Accountability Project, stated that the plan is "totally outrageous" and that the agency has prioritized industry over the public.

Statistics:

  • Since late December, the Commodity Futures Trading Commission has been investigating cattle futures trading on the Chicago Mercantile Exchange for possible insider trading (January 28 statement).
  • The USDA has had six months of closed-door meetings with industry representatives, but has not held a single public meeting.
  • The agency's expanded surveillance program has not received any positive tests or inconclusive results, according to the USDA's Web site (current date not specified).

Sources:

  • "The USDA plans to notify meat industry officials of positive mad cow test results at least an hour before informing the public, according to a leaked meat industry newsletter obtained by United Press International."
  • National Meat Association newsletter, Lean Trimmings (June 7 issue)
  • Government Accountability Project statement to UPI
  • USDA Web site statement (current date not specified)
  • Commodity Futures Trading Commission statement (January 28)
  • Senate Agriculture subcommittee meeting (May)
  • UPI article by Steve Mitchell (June 15)

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