Many are wondering where the outcry is about the discovery of the latest BSE cow in the United States. In my opinion, it never was about health, but about markets or the lack there of. When Canada discovered its first BSE-infected cow in May of 2003, the outcry reverberated around the world.
In Canada, many said it would be the death knell for the beef industry. How wrong they were. Do any of you remember when the latest BSE discovery occurred in Canada? I didn’t either. I had to look it up on the World Wide Web. It was back in January 2006, not 2005, or 2004. We have short memories. That goes to prove my point it’s all about the markets, and has very little to do with health.
When I spoke to a Grade 10 Social Studies Class in downtown Winnipeg high school at the height of the BSE hype, those Grade 10’ers figured it out real quick when I told them Canada’s regulatory system, the Canadian beef industry, and North American protocol would take care of the problem. In fact, the preverbal quiet little Johnny in the front seat raised his hand and posed this rhetorical question: “Isn’t this just about the Americans imposing an artificial trade barrier?”
Bingo! I said you’re absolutely right. Once the Americans figured this out, and finally got their rules right for starting the road back to recovery, we jumped back on the path to a North American market, albeit somewhat controlled. This headline on the Dow Jones Wire services sums it up quite nicely: “Restaurant, Food Company Stocks Shrug Off US Mad Cow Find.” The only people that haven’t figured this out yet are the Japanese. They will sooner than later.