DENVER - Worried about the devastating impact of lamb meat imports flooding the U.S. mar ketplace, the American Sheep In dustry Association, sheep produc ers, feeders, processors and packers filed a petition for import relief with the U.S. International Trade Commission on Wednesday, Sept. 30. The petition triggers a six month investigation by the ITC, to be followed by a Presidential decision as to the form and dura tion of the relief. The investiga tion, with information gathered from importers and all segments of the U.S. sheep industry, will begin immediately. A hearing on the "Section 201" trade action is expected in January 1999. "We are confident the results of the investigation will show im ports have caused serious harm to the American lamb industry," said Lorin Moench Jr., President of the American Sheep Industry Associa tion. "All parts of the chain - from gate to plate - need to focus on seeking relief or risk losing their businesses." In the last five years, imported lamb has skyrocketed from 15 percent of the American market to nearly one-third of all lamb con sumed in the United States during the first half of 1998 More than 95 percent of the imports come from Australia and New Zealand. Imports increased by nearly 50 percent during 1993-97 and con tinued to rise by another 12 per cent between January-June 1997 ah BQI **' ' - / DIVISION OFGSI “The Standard in Grain Drying” Combination Dryer One of the Most Modern Dryers on the Market Farm Bins Galvanized Fans and Heaters Hopper Bottom Tanks Commerical Flat Bottom Check Our Prices Before You Buy New Sukup 6” Power Sweep Unloading System for 21’Dia. Grain Bin, Less Motor *1 j 450 WE CUSTOM MANUFACTURE. Painted, Galvanized and Stainless Steel Fabrication, Feed Bins, Feeders, Hoppers, Covers, Dump Pits, Augers, and Control Systems to Automate Your Operation. Sheep Industry Deplores Imports, Files Petition and January-June 1998. Prices paid to American producers plummeted during the 1998 Easter/Passover season, the mar ket's traditional peak, reaching a 4-year low of 60 cents per pound for slaughter lambs. Industry leaders blame the im port surge on the Asian financial crisis and the openness of the U.S. market. That, coupled with the European Union's quota on lamb imports has turned the U.S. market into "a relief valve for ex cess lamb from major lamb producing countries," said Moench. Support for the petition has come from all segments of the U.S. sheep industry. Nine compa nies or associations have signed on as co-petitioners and hundreds of people or groups have contrib uted financial backing to the ef fort. "The imports are having such an impact that you have to speak up, voice your disapproval and your name on the dotted line. We're losing too many of our pro ducers," said Bill Brennan, plant manager for lowa Lamb Corpora tion, one of the co-petitioners. Based in Hawaiden, lowa, lowa Lamb Corporation is the largest packing house in the nation dedi cated solely to lamb meat. The petition asks the Commis sion to recommend to the White House a four-year period of relief in the form of an increased tariff on imported lamb coupled with a quota, above which an additional automatic farm systems 608 Evergreen Rd., Lebanon, PA 17042 (717) 274-5333 tariff would be levied. This would allow imports to continue, but at prices that will not drive U.S. producers out of business, said Pe ter Orwick, Executive Director of the American Sheep Industry As sociation. On Wednesday, Sept. 30, 1998, the American Sheep Indus try Association and industry sup porters filed a Section 201 trade-'' action petition with the U.S. In ternational Trade Commission in order to stem the flood of im ported lamb meat into the Ameri can marketplace that has endan gered thesurvival of U.S. sheep producers, feeders, processors and packers. What is a Section 201 trade action and how does it work? The U.S. Trade Act of 1974 al lows temporary action to be taken to protect American industry. A Section 201 petition asks the U.S. International Trade Commis sion to investigate whether a U.S. industry is seriously injured be cause of increased imports. The process involves a six-month in vestigation by the Commission, then a hearing (expected in Janu ary) and a recommendation to the White House. Upon a recommen dation for import relief, the White House has 60 days to approve, modify or deny it. Why did ASI file the pe tition? A financial crisis is facing the lamb industry and the petition was filed at the request of industry ON FARM STORAGE FOR MAXIMUM PROFITS Flex Flo Feed Systems Safety Access Equipment 651 STORAGE BINS leaders and with the unanimous support of ASl's 11-member elected Executive Board. During the 1998 Easter/Passover season, U.S. slaughter lamb prices were at a 4-year low, 60 cents per pound. Between 1993 and 1998, imports rocketed from 15 percent to 30 percent of all lamb consumption in the U.S. American industry leaders believe lamb producers and packers will go out of business if something isn't done to stem the rising tide of imported lamb flood ing the U.S. marketplace. Ap proval of the petition should buy the U.S. lamb industry time to complete a number of national ef forts to make it more competitive. Who supports the peti tion? The 11-member Executive Board for the American Sheep In dustry Association, a confedera tion of 50 state organizations rep resenting 75,000 producers, voted unanimously to pursue the trade action on July 18. Co-petitioners are. the Harper Livestock Com pany, based in Eaton, Colo., and one of the largest commercial feeders in the country; Winters Ranch Partnership, a lamb grower and feeder with a ranch in Del Rio, Texas, and a feedlot in Wind sor, Co.; Godby Sheep Company, a commercial feeder in Eaton, Co., Talbott Sheep Company, a lamb grower, feeder and broker based in Los Banos, Calif,; lowa Lamb Corporation, based in Hawarden, lowa, and the largest packing house in the nation dedi cated solely to the slaughter of lamb meat; Chicago Lamb & Veal Company, a processor of lamb and veal based in Chicago; AerWay makes manure nutrient incorporation faster, easier, and more effective Patented AerWay “shattertines” make it possible 1 chose the AerWay because it puts me in control of my liquid manure management system. This is particularly important as my farm is located next to a large Water Resource Shed. Prior to using the AerWay I had prob lems with soil compaction, manure run-off, ponding and loss of valuable nutrients. We spread between 3000 - 3500 U S Gal. per The AerWay helped with the above problems, as well as reducing my tillage, fuel and labour expenses With less time spent in the field I am able to spend more time with my Hog Operation The AerWav blends perfectly with my Conservation and Environmental Farm Plan. Lancaster Farming, Saturday, November 7, 1998-A29 Rancher's Lamb, a major lamb packer based in San An gclo,Texas; and the National Lamb Feeders Association. What can the Interna tional Trade Commission do? After the investigation and hearing, the Commission can deny the petition or recommend that the White House impose an import quota, increase the existing minimal tariff (less than a half penny per pound), or impose a combination of quotas and tariffs. Such relief typically lasts 4 years. The petition asks the Commis sion to increase the tariff and use a tariff-rate quota on all imports of lamb meat for 4 years. It also asks the Commission to urge the President to talk to the Australian and New Zealand governments to address the underlying causes of the import surge. What's the goal of the petition? To implement a trade remedy this winter that would allow lamb imports into the U.S but prevent them from flooding the market Not only would the large surges in imports that we have experi enced be prevented, but an in creased tariff would bring prices that will not drive U.S. producers out of business. Why did imports grow so rapidly? The American lamb market grew more attractive to foreign producers because of the financial crisis in Asia, currency devalua tion in Australia and New Zea land, and the lack of safeguards for the U.S. market. Also, Europe's (AerWay) (Turn to Page A3l) DOUG FILSINGER Farrow to I*inish Hog Operation Bluet ale, Ontario Corn/Bean Rotation
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