Debate rages over USDA decision to announce inconclusive BSE test;  by Megan Sweas on 7/2/04 for Meatingplace.com: Nebraska Gov. Mike Johanns and the state's agriculture department have asked the U.S. Department of Agriculture to re-examine its policy of announcing inconclusive BSE tests, citing the potential harm such announcements could have on the cattle industry, Johanns told the Associated Press.

"These tests are sensitive, and it's very possible that you put the inconclusive results out and say it could be BSE and then find out that its not," Johanns said in the AP article. "In the meantime, you have had a tremendous impact on the market, just like we have been seeing."

After the government announced the first inconclusive BSE test last Friday, cattle futures saw the largest decline Monday since the first case of BSE was announced last December. (See Cattle futures react to first inconclusive BSE test, Meatingplace.com, June 30, 2004.)

"APHIS will continue to regularly post testing results from its enhanced BSE surveillance program on its Web site and proactively report inconclusive results the day they are received," Deputy Administrator Dr. John Clifford, of the Animal and Plant Health Inspection Service, said in a technical briefing Wednesday.

"We want to be very open and transparent, and that's why the decision was made to release this type of information," Clifford said. "We feel that after we get this information out there a couple of times, hopefully it will continue to minimize that impact."

David Smith and David Steffen, veterinary scientists at the University of Nebraska, said that the public and the markets need to become more accustomed to the testing process and realize that more inclusive BSE tests will be reported due to expanded testing.

After the December BSE case, the USDA was criticized for not disclosing the incident sooner, a University of Nebraska news report said.

If the USDA continues to post inconclusive results, Smith said, it could become a common practice that has little effect on the markets.

"But this will still cause difficulties if it becomes routine. It's certainly not conducive to strengthening beef demand," Smith said.