U.S. beef banned by 15 nations

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Major American trading partners have banned U.S. beef since the government on Tuesday revealed the discovery of a case of mad cow disease in Washington state, threatening to seriously damage an industry that had been enjoying growing exports and the highest prices in years.

The U.S. Department of Agriculture (USDA) rushed to reassure consumers that beef remains safe as it continues an investigation into the origin of the disease in the lone dairy cow and the destination of any products from the slaughtered animal.

Agriculture Secretary Ann M. Veneman on Tuesday afternoon reported the first apparent case of mad cow disease in the United States. Officially known as bovine spongiform encephalopathy, or BSE, it is a fatal disorder that attacks the central nervous system and can move to humans who eat infected tissue.

"But I think it's important to recognize that the material in a cow that creates infectivity -- the spinal cord, the brain, what's called the distal ilium -- was all removed from this cow. And so the risk is extremely low to human health. And I would, without hesitation, say that no one should be afraid to eat beef," Mrs. Veneman said yesterday on CBS' "The Early Show."

Scientists say that muscle cuts, such as steaks and roasts, cannot transmit the disease. The disease resides in the brain and spinal columns of afflicted animals, and these parts of beef carcasses are discarded by packing plants. Some packing plants use machinery to strip the spinal columns of usable meat, but at least one of the three packing plants in Washington, where the diseased cow was butchered, does not have such equipment.

Still, the U.S. industry is bracing for severe fallout after the discovery.

"It's going to have a major impact when you lose export markets we count on for $2 billion to $3 billion in revenue," said Bryan Dierlam, director of legal affairs for the National Cattlemen's Beef Association, a trade group that represents U.S. producers.

Japan is the largest export market for U.S. beef, followed by South Korea, Mexico and then Canada, according to USDA's economic-research service.

Japan, Mexico, South Korea, Russia, Egypt, Hong Kong, Taiwan, Colombia, Singapore, Thailand, Brazil, Malaysia, Australia, Chile and Ukraine have all banned U.S. beef imports, the U.S. Meat Export Federation said. The countries represent about 87 percent of volume and value for beef exports. U.S. ranchers export about 10 percent of domestic production. Overseas sales were projected to reach $3.2 billion this year, Mr. Dierlam said. Industry and government officials want those markets reopened as soon as possible.