South Korea blocks U.S. Beef Imports Over Mad Cow Concern After Bone Pieces Found

Bone pieces not part of Tyson Foods shipment

Last updated Saturday, October 6, 2007 11:32 PM CDT in Business

By Jae-Soon Chang
THE ASSOCIATED PRESS

    SEOUL, South Korea (AP) -- South Korea suspended U.S. beef imports on Friday after inspectors reportedly found a recent shipment contained bone that is banned due to concerns over mad cow disease.

    The Agriculture Ministry said two vertebrae segments were found in one box of meat in an 18.5-ton shipment from the U.S. that arrived last week. Vertebrae are among parts -- also including skulls and eyes -- believed at risk of carrying the brain-wasting disease.

    "The ministry suspended inspections of all U.S.-produced beef and asked the U.S. government to immediately halt sending any shipments," it said in a statement.

    The shipment did not come from Tyson Foods, said company spokesman Gary Mickelson. He said the company is awaiting additional information from the U.S. Department of Agriculture on the matter and hopes the disruption will be brief. The company would not discuss how much beef it has shipped to South Korea that could be caught in the pipeline.

    Last year, South Korea agreed to import only boneless U.S. meat from cattle less than 30 months old, partially lifting an almost three-year ban imposed on American beef after the disease was discovered in the U.S.

    Resumed imports from the U.S. prompted protests and scuffles with police and some shops to pull the meat from shelves. South Korean regulators this year have banned individual U.S. companies after finding bones in shipments.

    South Korea shut its doors to all American beef in December 2003, after mad cow disease was found in cattle in the U.S.

    The suspension will remain in effect until after a new set of quarantine conditions are worked out in negotiations between the two countries that have yet to be scheduled, the ministry said.

    The trade disruption is of concern for the U.S. beef industry because of the size of the market, said Joe Schuele, trade spokesman for the National Cattlemen's Beef Association. He said South Koreans can afford to purchase high quality cuts of beef at premium prices over other foreign markets.

    "When the market is as profitable as South Korea, the effects of a suspension are also psychological, likely to put a damper on both cash and cattle futures markets in the near term, as the industry questions if the market is really open," Schuele said.

    The USDA indicates an average of $6.6 million a week in beef product being shipped to South Korea. Schuele said the value is a conservative estimate.

    Schuele said if beef processing companies don't want to put safeguards to prevent such trade disruptions, then they should not ship product to South Korea.

    Scientists believe mad cow disease spreads when farmers feed cattle recycled meat and bones from infected animals. The disease is also believed to be linked to the rare but fatal human variant, Creutzfeldt-Jakob disease.

    South Korea was the third-largest foreign market for American beef before it banned U.S. imports.

    Meanwhile, South Korea's Yonhap news agency reported that the Agriculture Ministry held a meeting of experts to seek their advice ahead of the upcoming talks with the U.S. on whether to further open the country's beef market.

    The ministry explained to the experts that the government is considering allowing imports of rib bones while maintaining a ban on imports of "special risk material" and intestinal parts, Yonhap said, citing unidentified experts who attended the meeting.

    Rib meat is used to make galbi, a popular dish of marinated meat barbecued at diners' tables that is a mainstay of the Korean diet.

    -- The Morning News business reporter Kim Souza contributed to this report.

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