The federal government should reverse ag policies that have increased health threats to the U.S. livestock industry and its consumers, the head of a national ranchers' advocacy group said Thursday.

Bill Bullard, chief executive officer of R-CALF USA, blamed U.S. Department of Agriculture policies and what he called the concentration of power among a handful of large meatpacking companies for many of the cattle industry's ills. His remarks came in a speech kicking off the annual convention of the South Dakota Stockgrowers Association on Thursday in Rapid City. The Stockgrowers Association is an affiliate of R-CALF.

Bullard said the USDA still has not overturned its rule allowing all Canadian cattle and beef to come into the U.S., despite the discovery of 17 cases of bovine spongiform encephalopathy in that country's cattle.

After the first Canadian cow with BSE was discovered in May 2003, USDA banned all cattle from Canada. It later narrowed the ban to cattle older than 30 months, because older animals were considered at greater risk for BSE, also known as mad cow disease. Finally, USDA opened the border to all cattle and beef from Canada, saying there were adequate safeguards preventing BSE-contaminated material from entering the food chain.

"We have been arguing strenuously that we have been unnecessarily exposing our cattle industry and our consumers to an unnecessary and avoidable risk," Bullard said at the Stockgrowers meeting.

He said several of the U.S. beef industry's export customers, including Japan, South Korea and Mexico continue to limit beef imports from the U.S. because of concerns over possible BSE contamination.

Bullard also ripped the USDA for continuing to allow cattle from Mexico to co-mingle with U.S.-raised cattle despite the incidence of bovine tuberculosis in that country. He said the policy resulted in Mexican cattle infected with TB found in 12 states.

Consumers aren't at risk of tuberculosis from eating meat, but the disease poses a threat to the U.S. cattle herd, Bullard said. Also, people can contract it through contact with contaminated livestock.

"We have got to strengthen our resistance against the continued reintroduction of TB from Mexico," he said.

Bullard also said R-CALF is concerned about provisions of the food safety bills working their way through Congress. He said they unfairly put more burdensome regulation on smaller processors but don't get at the source of most foodborne diseases: unsanitary conditions at large slaughter houses.

"We see in the beef industry an increase in e-coli and other foodborne illnesses that originate not from the meat, but from the intestine," Bullard said. "These are enteric bacteria that can only contaminate meat if the meat is contaminated with fecal material. It's a sanitary issue."

Bullard said R-CALF continues to oppose the House version of the food safety bill, even though it now largely exempts livestock.

Bullard again blamed the growing concentration of power in a handful of meatpacking companies for the loss of thousands of independent cattle producers.

He said the number of independent cattle producers has fallen from 1.3 million in 1980 to 757,000 in 2008.

Other livestock industries have fared even worse because of packer concentration, he said.

He said the number of independent swine producers dropped 90 percent in that same period, from 667,000 to fewer than 65,000. The number of dairy producers dropped 80 percent, from 335,000 in 1980 to 67,000 last year.

Bullard also said a market that is out of whack has driven about 30,000 small, independent cattle feeders out of business since 1996.

The 80,000 small feeders remaining feed only about 10 percent of all fed cattle in the country, Bullard said. Ninety percent are fed by 2,170 "mega" feedlots, he said, making for more control by the big meatpacking companies.

Bullard said the USDA had done nothing to slow the growth of concentration in the cattle markets until the U.S. Justice Department blocked the acquisition of National Beef by Brazilian firm JBS.

"That was monumental, a turning point in our industry," he said.

Bullard said even though he is still frustrated by USDA positions on animal health issues, he is more optimistic on trade and competition issues because of statements made by President Barack Obama's administration.

"They have publicly come out and said that they are committed to ensuring that farmers and ranchers have a competitive market," Bullard said after his speech. "They support a ban on packer ownership of livestock. And they have said they are willing to revisit trade agreements and trade policy," Bullard said. "The optimism is based on an expectation that they will follow through on campaign promises."

Bullard praised the new administrator of the U.S. Grain Inspection, Packers and Stockyards Administration, J. Dudley Butler, who is scheduled to speak at the Stockgrowers banquet Friday night.

The convention wraps up Saturday.

Contact Steve Miller at 394-8415 or steve.miller@rapidcityjournal.com.

Stockgrowers ScheduleFollowing is a partial schedule for the remainder of the South Dakota Stockgrowers Association annual convention in Rapid City.

• The convention is headquartered at the Grand Gateway Hotel at La Crosse Street and Interstate 90.
• All sessions are open to the public.

Friday, Sept. 11

• 7 a.m. Breakfast with inspirational speaker Jean Helmer.
• 8 a.m. Education/Taxation/Legislation Committee, featuring Michael Kenyon of the South Dakota Department of Revenue.
• 9:15 a.m. Trade Committee, with Michael Stumo, chief excecutive of Coalition for a Prosperous America.
• 10:45 a.m. Ag and Natural Resources Committee, with Tanya Storer and Sherri Vinton of Mullen, Neb.
• 11 a.m. Resolution Committee.
• Noon. Lunch with Don Hausle, retirement planning specialist.
• 1:30 p.m. Property Rights Committee, with Frank Falen of the Budd-Falen Law Offices of Cheyenne, Wyo.
• 3 p.m. General membership meeting.
• 7 p.m. Recognition banquet, featuring Dudley Butler, administrator of the Grain Inspection, Packers and Stockyards Administration.

Saturday, Sept. 12

• 8 a.m. Stockgrowers Board of Directors meeting.