020347 Foot-and-Mouth Rumor Hurt Industry

Topeka, KS - Kansas livestock officials are grappling with how to improve communications following an unfounded rumor of a foot-and-mouth disease outbreak that set off a selling panic in the commodities market.

Kansas Animal Health Commissioner George Teagarden told the state's House Agriculture Committee that his agency lacked an adequate plan for dealing with such rumors -- until now.

"In hindsight, it's pretty easy to sit back and see things you should do," he said Monday. "I had no idea that it started a disaster across the United States at that time."

On March 12, a rumor that nine cows at the Holton Livestock Market were infected with foot-and-mouth disease spread quickly throughout the Midwest and to the floor of the Chicago Mercantile Exchange.

Analysts estimate that the rumor cost the industry as much as $50 million nationwide after prices dropped $1.50 per hundred weight for market cattle. Prices have rebounded slightly.

Teagarden said regulators are investigating whether anyone illegally manipulated the market for profit.

The cattle at the center of the rumor had sores in their mouths. State investigators found the source of the mouth irritation -- coarse hay -- and discovered a horse with similar symptoms.

That was important because horses cannot contract foot-and-mouth disease, Teagarden said. Tests analyzed by the U.S. Department of Agriculture later confirmed the Animal Health Department's initial diagnosis.

In retrospect, Teagarden said, he should have issued a statement to allay public fears, possibly to the effect that tests for various suspected diseases are not uncommon and that results from the USDA would be announced later.

In any such cases in the future, he added, the Kansas Division of Emergency Management will be notified earlier than it was this time.

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