001019 NMA Attacks “Dismantling” of Supreme Beef by USDA

The following is a statement from the Nationa Meat Association on behalf of member company Supreme Beef Processors of Dallas, which filed for Chapter 11 protection.

The 30-year-old meat processor, Supreme Beef, had been held to uniquely stringent regulatory standards since U.S. District Judge Joe Fish handed down a preliminary injunction last year halting USDA's enforcement of its Salmonella Performance Standard. The bankruptcy filing comes after a lengthy legal battle with USDA over the inappropriately enforced standard.

Even though Supreme prevailed in a court of law, it ultimately lost. Despite having its actions declared illegal, USDA continued to stigmatize Supreme by recalling the company's products from the school lunch program, changing the criteria for product approval and other unjustified actions, which effectively eliminated much of Supreme's business

"We are disappointed in USDA's decision to continue litigation, with its appeal of the Dallas federal court's decision," said Steve Spiritas, Supreme Beef president. "Efforts by our company to have discussions with the department to resolve matters have been met with a deaf ear."

National Meat Association supported the principle behind Supreme's legal battle. It was joined by four other trade associations as amicus curiae to the "Texas litigation," as the case has come to be called.

"More than any other single action by the USDA, the Texas Litigation shows how regulatory uncertainty affects the market," said Rosemary Mucklow, NMA executive director. "We've seen a good company, with a strong business and a fine history dismantled by being held to a standard that didn't make any sense and was just plain wrong."

It is quite clear that meat processors, especially small meat processors like Supreme, cannot be subjected to unsound regulatory practices without severe disruption.

"By enforcing such unscientific standards, USDA contributes to the very consolidation it claims to be slowing, all the while hiding behind the rhetoric of 'food safety,'" Mucklow said, adding that NMA will continue to vigorously defend its members from such arbitrary actions.

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