EU Will Spend $1.11 Billion to
Kill Millions of Possibly Diseased Cows 

ERIC DROSIN & KONSTANTIN RICHTER / Wall Street Journal 6dec01

 

BRUSSELS — In a further effort to ease the public clamor over mad-cow disease and stop the spread of the human form of the fatal brain disease, the European Union's agriculture ministers decided to buy and destroy millions of older cows — at a potential cost of 1.25 billion euros ($1.11 billion).

The EU ministers ruled late Monday that, starting next July, all cattle over 30 months old that haven't been tested and cleared of bovine spongiform encephalopathy, or mad-cow disease, will be destroyed. Older cattle are believed to be the main carriers of the disease.

The proposed mass culling of herds would mirror similar emergency measures taken during Britain's BSE crisis in the mid-1990s.

But the 15-nation EU is struggling to find funds for the precautionary measure, which follows decisions over the past several days to ban all forms of animal feed containing animal byproducts and institute a massive testing program of Europe's herds.

The total cost of the measures, starting with the mass slaughter, will run into billions of euros. "Be in no doubt. This will be expensive," said EU Agriculture Commissioner Franz Fischler.

Officials said the EU would pay for 70% of the destruction of untested cattle, about seven million animals, and that member governments would come up with the rest. Farmers would only be compensated at current market rates, which reflect the recent drop in demand.

"We are going to push for the prices we had this summer," said Costa Golfitis, a Brussels-based official at the Committee of Agricultural Organizations in the EU.

EU officials are hoping to restore consumer confidence after an increase in cases of BSE across Europe caused a sharp drop in beef consumption. The disease has been linked to a fatal brain disease in humans.

The EU's "purchase-for-destruction scheme" only covers cattle that haven't been tested for BSE.

Farmers would decide whether to accept the EU offer or have their cattle tested and then processed, if they are cleared of BSE. But it is unclear at this stage whether mass testings are practical and economically viable. Commission officials say the EU would foot part of the testing bill at a cost of about 470 million euros.

Countries such as Finland, Sweden and Austria, which haven't reported any cases, argue that their records should entitle them to an exemption from some of the measures.

The commission has promised to examine if the plan can be modified to take such concerns into account.

The six-month ban on the use of meat and bone meal, the animal-feed product thought to transmit the disease, is also likely to fuel controversy.

Responding to criticism that the six-month period isn't enough, Mr. Fischler said the ministers could make the suspension permanent.

The commission estimates that the ban, which takes effect on Jan. 1, will cost the feed industry 1.5 billion euros. Farmers fear that they could end up paying, if slaughterhouses start deducting incineration costs of about 10% to 15% from the prices they pay for cattle.

EU governments have so far refused to offer compensation but industry associations say public funds should be used to cover the costs.

 

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