Age Verification for Japan: What is involved and is it right for me? Prepared by: John D. Lawrence Iowa State University Western Center for Risk Management Education Western Extension Marketing Committee

Overview Japan was largest US beef export customer in 2003 –37% of volume and $1.4 billion Resume limited beef trade with US –Beef from cattle under 21 months Verification program to prove age –Signed affidavits alone are not enough

US Beef Exports 2003

Export Verification (EV) Program It outlines the specified product requirements for beef to be eligible for export to a specific country. Each country has EV standards

Export Verification (EV) Program Each plant must have a Quality System Assessment Program (QSA) explaining how it will meet the requirement for each country.

Current International Standards (OIE) for Beef Trade Most countries other than Japan Boneless beef cuts from animals younger than 30 months. –So long as special safeguards are in place to avoid any contamination of the meat during slaughter.

Beef Export Verification (BEV) Program for Japan Beef from cattle verified to be less than 21 months of age. Two methods to confirm age Physiological maturity A40 Production records

USDA Export Verification (EV) Program for Japan Age Verification through Carcass Evaluation –Cattle of unknown age may be selected through carcass evaluation –Official USDA evaluation using the US Standards for Carcass Beef

Age Verification through Carcass Evaluation Slaughter Grading for Japan Shipping ・ Processing ・ Packing ・ Storage J ≤A40 ・ Processing ・ Packing ・ Storage USDA Accepted as Specified Shipping to Japan USDA Evaluator Maturity Score (Bone, Lean & Overall) Operate In “Export for Japan” Mode

USDA Export Verification (EV) Program for Japan Verification of age with production records Cattle must be traceable to live animal production records throughout their life time. Two methods: Individual and group ID

USDA Export Verification (EV) Program for Japan Individual Animal Age Verification –Animals must have unique individual identification –Records must be sufficient to trace the individual animal back to ranch records

USDA Export Verification (EV) Program for Japan Individual Animal Age Verification –Records must indicate the actual date of birth (month, day, year) of the animal and must accompany each animal through the process

NAIS is NOT Age Verification Recognize that NAIS is a confidential animal id system not a market tool Tags used for NAIS may also be used to id cattle for age verification, but NAIS is NOT age verification Birthdays are not required for NAIS

USDA Export Verification (EV) Program for Japan Group Age Verification –All animals within a group and born during the same calving season must be individually identified –Records must indicate the actual date of birth (month, day, year) of the first calf of the calving season

USDA Export Verification (EV) Program for Japan Signed affidavits alone are not sufficient to qualify cattle for Japan. The producer’s production records must be part of a USDA-approved QSA program or Process Verified program (PVP). These programs require producer evaluations and re-evaluations.

QSA and PVP Developed by company or organization that is responsible for the program. Is evaluated, approved and will be audited by USDA. A documented system that describes how a producer manages his or her operation.

QSA and PVP Each producer must have a written quality management system (QMS) that describes what records are kept and where to find them. The plan must ensure that everyone in the operation knows and follows the protocol.

Quality Management System A written management system that must address: –Documentation Requirements –Management Responsibility –Resource Management –Production of Product –Measurement, Analysis and Improvement –Record Requirements

Producer Requirements Records to validate age Procedures – Farm or Ranch Plan Records to validate activities Must be repeatable Producer is evaluated by company and/or USDA to verify conformance.

Farm/Ranch Profile Description of the legal status Maps or descriptions were specific animals are maintained Number of acres Number of breeding stock Feeding practices Timeline of operations

Farm/Ranch Profile Purchases of stock from outside sources Breeding methods and seasons Calving seasons Name of veterinarian Type of animal identification Other procedures specific to the ranch

Farm/Ranch Profile RECORDS to support the farm/ranch profile Breeding season records Calving records Purchase records Sale records Trucking records Herd Health records Records of animal movement

Five Primary Options To Producers 1.Have own PVP or QSA 2.Enroll in a PVP or QSA with a group of producers 3.Enroll in a PVP or QSA of the next segment in supply chain –Producer + Backgrounder –Backgrounder + Feedlot

Five Primary Options To Producers 4. Enroll in a QSA of a packer –Involves all segments of the supply chain 5. Enroll in a PVP or QSA from an independent third party –May use program compliant ear tags

Program Compliant Ear Tags A Program Compliant Ear Tag is: Unique and specific to the Program. The tag must be applied at the farm of birth, or an alternate location as approved on a case by case basis.

Program Compliant Ear Tags Cattle with Program Compliant Ear Tags may move through the production system without further verification activities. Companies receiving these cattle must verify conformance prior to inclusion.

Which one QSA or PVP? It is very costly to develop your own QSA or PVP estimates are $8000 for USDA costs and $4000 for a consultant. Spreading across producers reduces development and approval cost but increases enforcement and compliance cost Probably not practical for individuals or small groups

Which one QSA or PVP? In general, PVP are defined to be broader than only age and source Most PVPs are independent companies or associations –There often is a cost beyond the price of the tag to participate. –Cattle in a PVP can be sold to anyone needing to fulfill a BEV

Which one QSA or PVP? QSA only verify age and source Most QSAs are with a packer or feedlot and they are not transferable to other buyers There is typically little or no out-of- pocket cost to participate in a QSA

Factors to Remember NAIS is not QSA or PVP –Tagging cattle for national ID does not qualify them for Japan Premiums for age verification will depend on market conditions –Supply of A40 and QSA/PVP cattle relative to the demand from Japan will determine the premium

Summary QSA/PVP are not required to market cattle Japan is expected to rebuild the increasing demand for age verification Other marketing programs do/will value documented claims QSA/PVP follow good management practices and may improve the overall management of the operation