R-CALF United Stockgrowers of America

For Immediate Release Contact: Shae Dodson, Communications Coordinator

March 3, 2005 Phone: 406-672-8969; e-mail: sdodson@r-calfusa.com

Victory for U.S. Cattle Producers;

Court Grants Request for Preliminary Injunction

(Billings, Mont.) – Wednesday, March 2, in U.S. District Court for the District of Montana, U.S. District Judge Richard F. Cebull granted R-CALF USA its request for a preliminary injunction to prevent the Canadian border from reopening to live cattle and additional beef products on March 7, as scheduled by the United States Department of Agriculture (USDA) in its Final Rule issued on Dec. 29, 2004.

“R-CALF appreciates the time and attention the court has given this very important issue, and we’re thankful for our United States’ system of checks and balances,” said Bill Bullard, R-CALF USA CEO. “Now, U.S. cattle producers will have the opportunity during the upcoming hearing to prove that science supports our position.

“Judge Cebull realized we had legitimate concerns based on the key scientific evidence we presented that demonstrates USDA’s effort to reopen the border on March 7 is premature,” Bullard continued. “It was good today to be able to state our position in a forum insulated from the political overtones that have been driving this issue for the past two years.

“R-CALF will continue to ask Congress to pass a Joint Resolution of Disapproval to make USDA’s Final Rule null and void, and we hope that Congress will step to the plate to make this happen so the hard-earned money of grassroots cattle producers won’t have to be used to foot the legal bills we’re going to face as this case moves forward,” said Bullard. “R-CALF extends its sincere gratitude to the U.S. cattle industry because it was the overwhelming support and donations from ranchers across the country that enabled us to bring home an initial victory.”

Leo McDonnell, president and founder of R-CALF USA said he was extremely pleased with U.S. District Judge Richard F. Cebull’s ruling today.

“It’s an important victory for the U.S. cattle industry, and it also was an important victory for applied science, as this court action sends a strong message that our nation’s current import standards are science based and should not be relaxed simply because USDA wants to reopen the Canadian border, despite the discovery of four cases of BSE detected in Canadian cattle” McDonnell said. “USDA is trying to change our import regulations that have been in place for 15 years, without having a scientific basis for doing so.

“It doesn’t make sense for the United States to have the lowest import standards in the world when it comes to importing beef products from countries affected by BSE,” McDonnell continued. ”We want global trade to be based on the same standards for every country.”

Several U.S. export customers closed their markets to U.S. beef after the discovery of a BSE-infected cow of Canadian origin in Washington state on Dec. 23, 2003.

USDA attorneys argued that United States’ export customers would reopen their markets to U.S. beef once the Canadian border is reopened, because they said, it would show that USDA’s science would put into place virtually “zero-risk” BSE safeguards for both the U.S. cattle herd and U.S. consumers.

McDonnell said R-CALF USA disagrees with USDA’s assertion, and that it is important to look at the whole scheme of things.

“USDA is saying the United States has to set an example for the rest of the world, and that reopening the Canadian border will cause Japan and South Korea to reopen its markets to USA beef,” said McDonnell. “But the U.S. has been importing boxed beef from Canada for two years now, and it hasn’t spurred the rest of the world to halt their import bans on U.S. beef.”

R-CALF USA still maintains that country-of-origin labeling (COOL) should be fully implemented before the border reopens so U.S. consumers can choose whether they want to serve their families Canadian beef or USA beef. COOL was passed into law with the 2002 Farm Bill, but COOL opponents successfully lobbied for a delay until September 2006. After Canada’s May 2003 BSE case, Japan insisted it would continue to accept beef from the U.S. only if the U.S. provided a guarantee the beef was not derived from Canadian cattle and was properly marked. So, R-CALF USA cannot understand USDA’s logic that Japan would reopen its markets to the United States when there is no program in place to differentiate Canadian product from USA product.

After May 20, 2003, the U.S. closed down imports of Canadian beef until August 2003, when the agency said it would allow the importation of only boneless whole muscle cuts from animals younger than 30 months of age. Even though the importation of live cattle halted completely at that time, importation of Canadian boxed beef increased dramatically – by 40 percent – in 2004.

Cebull told USDA attorneys that he was taken aback while reading agency briefs that described the rise in imports of Canadian boxed beef, and said he did not realize the actual impact of USDA policies on the Canadian beef market was so negligible.

“From listening to the Canadians, it sounds to be a whole lot worse,” Cebull said. “But, if we’re importing as much as we did before, then what’s the rush (to reopen the border)?”

Cebull said the upcoming hearing would allow testimony from experts on BSE, including statisticians and scientists, and more exploration of the issues could take place then, than what is allowed during a preliminary injunction hearing like the one that occurred on Wednesday.

Cebull instructed the attorneys for both parties to come up with a mutually acceptable schedule for trial and present it to the court within 10 days. Upon receipt of that schedule, the court will look at available dates for the trial.

Cebull said his formal opinion would be complete late today or early Thursday. Once available, the opinion can be viewed in its entirety at: www.r-calfusa.com by clicking on “BSE-Litigation.”

USDA can appeal Cebull’s decision to the 9th U.S. Circuit Court of Appeals.

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R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) represents thousands of U.S. cattle producers on domestic and international trade and marketing issues. R-CALF USA, a national, non-profit organization, is dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. R-CALF USA’s membership consists primarily of cow-calf operators, cattle backgrounders, and feedlot owners. Its members – over 13,000 strong – are located in 45 states, and the organization has over 57 local and state association affiliates, from both cattle and farm organizations. Various main street businesses are associate members of R-CALF USA. For more information, visit www.r-calfusa.com or, call 406-252-2516.