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Economic feed losses to BSE regs add up

00:00AM Sep 04, 2008

In a report released this afternoon, USDA's Economic Research Service says the economic feed impact of Bovine Spongiform Encephalopathy (BSE) regulations over the past decade total close to $900 million. But those added costs pale in comparison to the loss of meat export sales, which are estimated to range from $3.2 to $4.7 billion.            

"When the Final [BSE] Rule is implemented in 2009, the feed substitution impact will be relatively small in aggregate,” say the authors.            

Studies estimate that the regulation feed costs break down as follows: Increased cost of feeding cattle, $637 million; increase in definition of specified risk material, $195 million; net loss to rendering, $53 million, and increase in meat and bone meal prices, $8 million.            

While some in the industry are starting to question these costs, ERS notes that the benefits of implementing feeding restrictions have not been tallied. For the full report click here.