Who Suffers Most when Disease Outbreaks and Food Recalls Happen? The Case of Mad Cow Disease in the United States

It is generally observed that whenever there are cases of disease outbreaks and food recalls, such as the case of the 2003 Mad Cow Disease (Bovine Spongiform Encephalopathy or BSE) outbreak, cattle and beef prices fall. Given these incidents, there is the question of which part of the marketing chain is the most affected. For those who produce live cattle, such as feedlot operators, the question is ‘what effect these events have on price and demand for beef and cattle?’ Similarly, how do the Food Safety Inspection Service (FSIS) recalls and diseases such as Mad Cow Disease outbreaks affect the beef marketing margins at all levels in the U.S. beef marketing chain? Identifying these effects along the marketing chain provides insight into which level along that channel is the most vulnerable to these events. In addition, this information helps to assess the impact of such events on the industry, providing a basis for policy formulation.

STATE REGISTRATION AND LICENSING REGULATIONS: A NEW PROGRAM (OHIO)

We enacted a bill in Ohio this year, Senate Bill 445, that has to do with the application of pesticides. It is a very wide bill as you would normally look at it with most of the meat going to come from the regulations that are presently being written into it. In other words, the framework was developed and accepted by the two houses in our state legislature and empowered the Director of Agriculture to establish the regulations or the so-called teeth to this bill. The governor signed the bill in June and it became effective in September. The committees as of this time are meeting to develop philosophies and regulations that will be promulgated and brought into hearings and sifted through, and eventually, with a target date of December of this year, (1970), brought to the Director of Agriculture's office for acceptance. There is a committee established for rodent and bird control which is very well represented by our industry here in Ohio. John Beck (Rose Exterminator Company) is the chairman of the committee, William B. Jackson (Bowling Green State University) and Robert Yaeger (Cincinnati) are also on the committee. The important feature of this new law, in terms of pest control operators, is the examinations that will be required. We operators and our service people will both be tested and licensed, if sufficient proficiency is demonstrated on the tests. For your information they use a little different terminology in the bill than we in the industry normally use. We think of an applicator in the industry as service people. In the bill an applicator is defined as an operator. Therefore in reading the law the word operator means the man who does the job, the service man. Just the reverse is true in the industry. We think of the operator as the man who owns or manages the company while these people are referred to in the bill as applicators. The Bill calls for the development of schools for the training of our people throughout the state. Those of us who are in bird control should begin to prepare ourselves to meet this request, to be available for the schooling, have our people available for the schooling, and give this program all the co-operation that we can.

THE ROLE OF PEST CONTROL OPERATORS IN VERTEBRATE PEST CONTROL

The National Pest Control Association, which I represent, accepts for membership those persons or firms which are actively engaged in the performance of structural pest control services for hire to the public at large and which are in sympathy with the purposes of the Association. The pest control operator in this context might be called a commercial pest control operator to distinguish him from those doing similar work but who are employed by governmental agencies or within large commercial organizations. Pest control is a growing industry with a gross annual income of 300-350 million dollars. It is estimated to contain more than 5,000 firms employing about 25,000 productive workers. Many of these servicemen, possibly 15,000, are doing vertebrate pest control every day as they combat commensal rodents. A much smaller number, usually specialists or persons normally doing super¬visory work, are also engaged in the control of pest birds and a variety of miscellaneous vertebrates. With approximately 15,000 servicemen making at least 10 contacts a day with the public, it is readily apparent that whatever opportunity the general public has to judge the success or failure of vertebrate pest control practice is largely influenced by the work of the pest control industry.