[Federal Register Volume 64, Number 35 (Tuesday, February 23, 1999)]
[Proposed Rules]
[Pages 8755-8761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-4417]
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DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection Service
9 CFR Part 94
[Docket No. 97-079-1]
RIN 0579-AA91
Importation of Pork and Pork Products From Yucatan and Sonora,
Mexico
AGENCY: Animal and Plant Health Inspection Service, USDA.
ACTION: Proposed rule.
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SUMMARY: We are proposing to amend the regulations concerning the
importation of animal products to relieve certain restrictions on the
importation of pork and pork products from the Mexican State of
Yucatan. Currently, because of the existence of hog cholera in Mexico,
pork and pork products from Yucatan must be heated or cured and dried
to certain specifications to be eligible for entry into the United
States. This proposal would establish new conditions for the
importation of fresh and processed pork and pork products from Yucatan
into the United States and would also provide for the movement through
areas where hog cholera may exist of pork and pork products from
Yucatan in transit to the United States. We are also proposing to amend
the regulations that provide for the importation of fresh pork from the
Mexican State of Sonora to also allow the importation of pork products
from Sonora and to modify the import conditions for Sonoran pork and
pork products so that those conditions parallel the import conditions
proposed for pork and pork products from Yucatan. These proposed
amendments would provide for the importation of pork products from
Sonora and for the in-transit movement of Sonoran pork and pork
products through areas where hog cholera may exist and would make it
clear that pork and pork products from Sonora must be derived from
swine slaughtered at federally inspected slaughter plants.
DATES: Consideration will be given only to comments received on or
before April 26, 1999.
ADDRESSES: Please send an original and three copies of your comments to
Docket No. 97-079-1, Regulatory Analysis and Development, PPD, APHIS,
suite 3CO3, 4700 River Road Unit 118, Riverdale, MD 20737-1238. Please
state that your comments refer to Docket No. 97-079-1. Comments
received may be inspected at USDA, room 1141, South Building, 14th
Street and Independence Avenue SW., Washington, DC, between 8 a.m. and
4:30 p.m., Monday through Friday, except holidays. Persons wishing to
inspect comments are requested to call ahead on (202) 690-2817 to
facilitate entry into the comment reading room.
FOR FURTHER INFORMATION CONTACT: Dr. John Cougill, Senior Staff
Veterinarian, Products Program, National Center for Import and Export,
VS, APHIS, 4700 River Road Unit 40, Riverdale, MD 20737-1231, (301)
734-3399.
SUPPLEMENTARY INFORMATION:
Background
The Animal and Plant Health Inspection Service (APHIS) of the U.S.
Department of Agriculture (USDA) regulates the importation of animals
and animal products into the United States to guard against the
introduction of animal diseases not currently present or prevalent in
this country. The regulations pertaining to the importation of animals
and animal products are set forth in the Code of Federal Regulations
(CFR), title 9, chapter I, subchapter D (9 CFR parts 91 through 99).
Until recently, the regulations in parts 91 through 99 governed the
importation of animals and animal products according to the recognized
animal disease status of the exporting country. In general, if a
disease occurred anywhere within a country's borders, the entire
country was considered to be affected with the disease, and
importations of animals or animal products from anywhere in the country
were regulated accordingly. However, international trade agreements
entered into by the United States--specifically, the North American
Free Trade Agreement and the General Agreement on Tariffs and Trade--
require APHIS to recognize regions, rather than only countries, as well
as levels of risk, for the purpose of regulating the importation of
animals and animal products into the United States. Consequently, on
October 28, 1997, we published in the Federal Register a final rule (62
FR 56000-56026, Docket No. 94-106-9, effective November 28, 1997) that
established procedures for recognizing regions and levels of risk for
the purpose of regulating the importation of animals and animal
products. In that rule, we also established procedures by which a
region may request permission to export animals and animal products to
the United States under specified conditions, based on the region's
disease status.
[[Page 8756]]
On the same date, we also published a policy statement (62 FR
56027-56033, Docket No. 94-106-8) that explained that we will evaluate
such requests on a case-by-case basis by analyzing the level of disease
risk involved. Levels of risk exist upon a continuum. However, we
established five benchmark categories--negligible, slight, low,
moderate, and high--to give foreign regions a general idea of where
they fit upon the risk continuum. According to our policy, once we have
established the level of disease risk associated with the unrestricted
importation of a particular type of animal or animal product, we will
determine the import conditions needed to reduce that risk to a
negligible level. Because of the number of potential variables and the
vast number of possible combinations of those variables in assessing
the risk of the unrestricted importation of animals and animal products
from a region, the precise combination of measures necessary to reduce
the risk of disease introduction to a negligible level will likely vary
from region to region depending on the commodities to be imported and
the diseases of concern.
The factors that we will consider in determining the level of risk
associated with unrestricted importation of a particular type of animal
or animal product from a region are:
(1) The authority, organization, and infrastructure of the
veterinary services organization in the region.
(2) The type and extent of disease surveillance in the region--
e.g., is it passive and/or active; what is the quantity and quality of
sampling and testing?
(3) Diagnostic laboratory capabilities.
(4) Disease status--is the disease agent known to exist in the
region? If ``yes,'' at what prevalence? If ``no,'' when was the most
recent diagnosis?
(5) The extent of an active disease control program, if any, if the
agent is known to exist in the region.
(6) The vaccination status of the region. When was the last
vaccination? What is the extent of vaccination if it is currently used,
and what vaccine is being used?
(7) Disease status of adjacent regions.
(8) The degree to which the region is separated from regions of
higher risk through physical or other barriers.
(9) The extent to which movement of animals and animal products is
controlled from regions of higher risk, and the level of biosecurity
regarding such movements.
(10) Livestock demographics and marketing practices in the region.
(11) Policies and infrastructure for animal disease control in the
region--i.e., emergency response capacity.
The regulations in 9 CFR part 94 pertain to, among other things,
the importation of meat and other animal products into the United
States. Currently, Sec. 94.20 allows fresh (chilled or frozen) pork
from Sonora, Mexico, to be imported if: The pork is meat from swine
that have been born, raised, and slaughtered in Sonora; the pork has
not been in contact with pork from regions other than those listed in
Sec. 94.9(a) as regions where hog cholera is not known to exist; and an
authorized official of Mexico certifies on the foreign meat inspection
certificate (required by 9 CFR 327.4) that the above conditions have
been met.
We are proposing to amend Sec. 94.20 to (1) expand the importation
of pork products from Sonora, (2) allow pork and pork products from
Yucatan, Mexico, and (3) amend some of the provisions pertaining to
pork from Sonora so that the same import requirements apply to pork and
pork products from both Sonora and Yucatan, Mexico.
Our Proposal
In June 1995, the Government of Mexico officially requested that
the United States recognize the Mexican State of Yucatan as free of hog
cholera. In October 1996, a team of APHIS veterinarians conducted a
site visit to verify that Yucatan was free of hog cholera and had the
veterinary infrastructure, disease control programs, diagnostic
capabilities, and surveillance programs necessary to prevent a
recurrence of the disease. The site visit confirmed the information
presented in the request by the Mexican Government. Copies of the APHIS
site visit report may be obtained by contacting the person listed under
FOR FURTHER INFORMATION CONTACT. The APHIS team also determined that
the Yucatan swine industry and Mexican agricultural officials were
exclusively interested in the exportation of pork and pork products and
not live swine to the United States.
Based on the information presented to APHIS by the Government of
Mexico and our site visit to Yucatan, we have established the following
facts, which correspond with the factors listed previously for
determining the risk associated with unrestricted importation of a
particular commodity from a region:
(1) In Mexico, animal health functions are carried out by officials
at the Federal level, who set policy, and by officials at the State
level, who carry out program operations. The success of all disease
eradication or control programs in Mexico largely depends on the
relationship between these two levels of government and between
governmental officials and the livestock industry. In Yucatan, a unique
collaborative relationship exists between the pork producer
associations and the State and Federal animal health officials. The
success of the hog cholera eradication program in Yucatan has been
largely due to the dedication and commitment of the industry and its
willingness to work with animal health officials. In addition, State
and Federal laws, regulations, policies, and infrastructure in Yucatan
and Mexico appear to be adequate to restrict movements of swine and
swine products into Yucatan from any regions of Mexico where hog
cholera may exist.
(2) Prior to Mexico's declaration of Yucatan as free of hog cholera
in April 1995, Yucatan State officials conducted an initial serological
survey from January through March 1995 to verify the State's hog-
cholera-free status. Yucatan maintained active surveillance on its
commercial and small, private ``backyard'' swine populations during
1996 and 1997. We have reviewed the sampling methodology used and are
generally satisfied with it.
(3) Laboratory and diagnostic capabilities are sufficient and meet
the standards of the International Office of Epizootics.
(4) and (5) The last case of hog cholera in Yucatan was reported in
1982, and Mexico declared the State free of the disease in April 1995.
(6) Vaccination for hog cholera in Yucatan was discontinued in
1993.
(7) and (8) Yucatan is bordered only by two Mexican States and the
Gulf of Mexico. The State of Quintana Roo, which adjoins Yucatan to the
south and southeast, was declared free of hog cholera in 1996. The
State of Campeche, which adjoins Yucatan to the south and southwest,
was declared free of hog cholera in December 1997. Very little swine
production occurs in either Campeche or Quintana Roo.
(9) Yucatan strictly controls the inter-and intrastate movement of
livestock, poultry, and livestock and poultry products into and through
the State. Trade and travel through the maritime port and international
airport are strictly monitored, as is vehicular movement within the
State. Commercial vehicles with agricultural cargo from Quintana Roo or
Campeche must present proper health documentation for the cargo or
entry is denied. In addition, all vehicles entering Yucatan from
Campeche are inspected. (Quintana Roo is largely a tourist State and
has little commercial
[[Page 8757]]
swine production, so vehicles from Quintana Roo are not routinely
inspected.) Pork products produced in States of lower health status
than that of Yucatan may be imported only if the products meet time and
temperature processing requirements and originate from a slaughter
plant approved and inspected by the Government of Mexico.
(10) Commercial swine production in Yucatan is concentrated among
approximately 200 producers, who collectively own about 65,000 sows.
Three producers alone own 65 percent of these sows, all of which are
housed in highly integrated operations similar to those found in the
United States. Such fully integrated operations in Yucatan implement
good biosecurity measures at all levels, from parent herds to
processing plants. While the number of backyard herds in Yucatan is
dwindling, they still constitute a sizable population, and biosecurity
measures at these operations vary. Live hogs are imported into Yucatan
only from hog-cholera-free States and regions, and most of Yucatan's
replacement breeding stock originates in the United States.
(11) State and Federal laws, regulations, policies, and
infrastructure in Yucatan and the rest of Mexico appear to be adequate
to maintain surveillance and control of hog cholera and to eradicate
hog cholera rapidly in the event of an outbreak in the State of
Yucatan.
The findings just described are described in further detail in a
qualitative risk assessment that we conducted in accordance with the
regionalization final rule and policy statement discussed previously.
Our qualitative risk assessment concerning the importation of pork and
pork products from federally inspected slaughtering establishments in
Yucatan may be obtained by contacting the person listed under FOR
FURTHER INFORMATION CONTACT. The risk assessment indicated that the
importation of pork and pork products from federally inspected
slaughtering establishments in Yucatan, Mexico, would present a
negligible risk of introducing hog cholera into the United States.
Based on the finding of negligible risk, we are proposing to allow
the importation of pork and pork products from Yucatan, Mexico.
However, we are proposing to allow these importations to occur only
under certain conditions, which are set out below, to help prevent the
possibility that pork or pork products from swine raised in regions of
Mexico other than Yucatan or Sonora could be exported to the United
States via Yucatan. We are proposing to amend the import conditions for
pork from Sonora at Sec. 94.20 to provide the same import conditions
for pork and pork products from both Sonora and Yucatan. We want to
prevent the following possibilities: That swine from regions of Mexico
other than Sonora or Yucatan could be moved to Yucatan or Sonora for
slaughter, processing, and export to the United States; that pork or
pork products from other regions could be moved to Yucatan or Sonora
for export to the United States; or that, once leaving Yucatan or
Sonora, pork and pork products from Yucatan or Sonora could be
commingled with pork or pork products from other regions of Mexico in
transit to the United States. We believe that the proposed import
conditions would provide a higher degree of safety against the
occurrence of any of these scenarios than the current requirements
listed in Sec. 94.20. Following the list of import conditions is our
basis for them.
Proposed Conditions
1. The pork or pork product must be from swine that were born and
raised in Sonora or Yucatan and slaughtered in Sonora or Yucatan at a
federally inspected slaughter plant under the direct supervision of a
full-time salaried veterinarian of the Government of Mexico, and the
slaughter plant must be approved to export pork and pork products to
the United States in accordance with 9 CFR 327.2.
2. If processed in any manner, the pork or pork product must be
processed at a federally inspected processing plant in Sonora or
Yucatan under the direct supervision of a full-time salaried
veterinarian of the Government of Mexico.
3. The pork or pork product must not have been in contact with pork
or pork products from any State in Mexico other than Sonora or Yucatan
or from any other region not listed in Sec. 94.9(a) as a region where
hog cholera is not known to exist.
4. The foreign meat inspection certificate for the pork or pork
product (required by 9 CFR 327.4) must be signed by a full-time
salaried veterinarian of the Government of Mexico. The certificate must
include statements that certify the above conditions have been met. The
certificate must also show the seal number on the shipping container if
a seal is required (see below).
5. In addition, if the pork or pork product is going to transit any
State in Mexico other than Sonora or Yucatan or any other region not
listed in Sec. 94.9(a) as a region where hog cholera is not known to
exist, a full-time salaried veterinarian of the Government of Mexico
must apply serially numbered seals to the containers carrying the pork
or pork products at the federally inspected slaughter or processing
plant in Sonora or Yucatan, and the seal numbers must be recorded on
the foreign meat inspection certificate.
6. Prior to its arrival in the United States, the shipment of pork
or pork products must not have been in any State in Mexico other than
Sonora or Yucatan or in any other region not listed in Sec. 94.9(a)
unless the pork or pork products have remained under seal until arrival
at the U.S. port and either (1) the numbers on the seals match the
numbers on the foreign meat inspection certificate or (2) if the
numbers on the seals do not match the numbers on the foreign meat
inspection certificate, an APHIS representative at the port of arrival
is satisfied that the pork or pork products were not contaminated
during movement to the United States.
Basis for Proposed Conditions
We are proposing to require that the pork and pork products come
only from swine slaughtered at federally inspected slaughter plants in
Sonora or Yucatan because such plants handle only swine that were born
and raised in Sonora or Yucatan in establishments that practice strict
biosecurity measures. Therefore, this proposed requirement would serve
as a safeguard against the possibility that pork or pork products from
swine raised in backyard farms in Sonora or Yucatan, where biosecurity
measures are variable, could be exported to the United States. Although
Sec. 94.20 does not currently include this proposed requirement, all
pork from Sonora has come exclusively from federally inspected
slaughtering plants.
We are proposing that processed pork or pork products from Sonora
or Yucatan come only from federally inspected processing plants in
Sonora or Yucatan because those plants have been found to meet the
requirements of the USDA's Food Safety and Inspection Service and have
been approved to export pork and pork products to the United States in
accordance with 9 CFR part 327. Further, those plants are under the
direct supervision of full-time salaried veterinarians of the
Government of Mexico.
The proposed requirement that the pork and pork products must not
have been in contact with pork or pork products from any State in
Mexico other than Yucatan or Sonora, or from regions other than those
listed in Sec. 94.9(a), is intended to ensure that the pork and pork
products were not exposed to pork or pork products from a region with a
[[Page 8758]]
greater risk of hog cholera. These requirements are the same as those
currently in place for pork from Sonora, except that they would allow
commingling of pork and pork products from Sonora and Yucatan.
We are proposing to allow the pork and pork products to transit
other regions not listed in Sec. 94.9(a) en route to the United States
if the pork and pork products are shipped in containers sealed with
serially numbered seals at the federally inspected slaughtering plant
or processing plant in Sonora or Yucatan and the containers arrive in
the United States with the seals intact. The seal numbers would have to
be listed on the foreign meat inspection certificate that accompanies
the shipment. This precaution would ensure that the pork and pork
products have remained in closed containers during transit to the
United States and have not become contaminated.
This proposed rule would also allow the importation of the pork and
pork products in containers bearing seals with different numbers than
those listed on the foreign meat inspection certificate if our port
inspectors can determine that an official of the Government of Mexico
opened the original seals and then applied new seals. Section 94.20
does not currently provide for such in-transit movements under seal for
pork from Sonora. However, we now realize the need to allow some
flexibility in shipping and recognize that valid reasons may exist for
the containers to have been opened and for the seal numbers to have
been changed in transit. For example, many flights from Yucatan to the
United States stop in Mexico City, and the containers may have to be
opened for inspection by Mexican customs officials.
Prior to the final rule that established Sec. 94.20 and allowed the
importation of fresh (chilled or frozen) pork from Sonora (see 62 FR
25439-25443, Docket 94-106-6, May 9, 1997, effective July 8, 1997),
pork and pork products from all of Mexico were prohibited entry into
the United States unless they were processed in accordance with
Sec. 94.9. Section 94.9 requires that pork and pork products from
regions where hog cholera is considered to exist meet stringent
conditions to ensure the pork's freedom from hog cholera. Among other
things, the pork or pork product must be fully cooked, or deboned and
heated to a specified temperature, or cured and dried to specifications
in the regulations. Because Sec. 94.20 applies specifically to the
importation of fresh (chilled or frozen) pork from Sonora, Mexico, any
processed pork from Sonora must meet the conditions of Sec. 94.9 to be
eligible for importation into the United States. However, as stated
previously, we believe that any type of pork or pork product from
Sonora or Yucatan imported under the conditions specified in this
proposed rule would present a negligible risk of introducing hog
cholera. Therefore, this proposed rule would allow the importation from
Sonora and Yucatan of processed pork that does not meet the conditions
of Sec. 94.9.
Executive Order 12866 and Regulatory Flexibility Act
This proposed rule has been reviewed under Executive Order 12866.
The rule has been determined to be significant for the purposes of
Executive Order 12866 and, therefore, has been reviewed by the Office
of Management and Budget. A summary of the analyses required by
Executive Order 12866 and the Regulatory Flexibility Act are set forth
below. Copies of the entire analyses may be obtained by contacting the
person listed under FOR FURTHER INFORMATION CONTACT.
The hazard of concern regarding the proposed importation of pork
and pork products from the Yucatan region of Mexico is hog cholera. A
qualitative risk assessment prepared by APHIS indicates that the
expected costs of disease introduction are likely to be zero, as the
proposed imports pose a low probability of causing a hog cholera
outbreak in the United States. APHIS also conducted a quantitative risk
assessment based only on serological survey data of commercial swine
operations in the Yucatan. Due to modeling constraints, the
quantitative risk assessment could not include some of the information
most pertinent to risk evaluation, such as the fact that an outbreak of
hog cholera has not occurred in the Yucatan since 1982. However, the
quantitative model is useful in that it provides an upper limit on the
estimated probability of a hog cholera outbreak and acknowledges that
the actual risk is likely to be lower. Expected costs associated with
the proposed trade are calculated by multiplying the estimates from the
quantitative model of the likelihood of an outbreak and the estimated
economic consequences of an outbreak.
In accordance with Executive Order 12866, APHIS has compared the
benefits of the increased trade to the expected costs resulting from
disease outbreak. The benefits are calculated as the net change in
consumer and producer surplus that results from the estimated volume of
trade. Assuming that, among other things, Yucatan pork would be a
perfect substitute for domestic pork, it is estimated that the net
benefits of Yucatan pork imports would be positive. Allowing
importations of Yucatan pork would cause U.S. farm gate prices to
decrease marginally, benefitting U.S. consumers.
Commercial swine production in Yucatan is concentrated among
approximately 200 producers, who collectively own about 65,000 sows
(1996 data). Three producers alone own 65 percent of these sows, all of
which are housed in highly integrated operations similar to those found
in the United States. Most of the remaining commercial producers are
communal producers who operate small shared commercial herds with 15-40
sows. The number of ``backyard'' herds in Yucatan is decreasing.
Yucatan generates 7-8 percent of Mexico's pork production. The
State is a net exporter of pork, with 65 percent of its pork going to
the tourist centers in the neighboring State of Quintana Roo,
population centers in and around Mexico City, and Japan. Pork intended
for export is slaughtered at the State's only federally inspected
slaughter facility. At full capacity, this facility can slaughter up to
1,000 head per day, with a maximum annual production of 10,000 metric
tons of pork.
Based on existing Yucatan hog production and slaughter capacity, it
is expected that Yucatan producers could export between 200 and 10,000
metric tons of fresh and frozen pork to the United States per year. The
high-volume scenario is based on the maximum output of the federally
inspected slaughter facility and assumes that all 10,000 metric tons
produced there would be shipped to the United States. Because this
scenario is unlikely, we also evaluated more realistic scenarios of
1,000 and 200 metric tons. The most likely amount of pork imported into
the United States from Yucatan would probably be between these two
amounts. Therefore, the regulatory impact analysis summarized here
examines the potential economic impact of such imports under low- (200
metric tons per year), medium- (1,000 metric tons per year), and high-
(10,000 metric tons per year) volume scenarios.
Results of computer simulation iterations for the low-volume
simulations indicate positive net benefits in 90 percent of the
iterations run. Results of the medium-volume simulations indicate
positive net benefits in 85 percent of the iterations run. Results from
the high-volume scenario indicate positive net benefits in 75 percent
of the iterations run. In the absence of disease (when likelihood
[[Page 8759]]
estimates are zero), the annual net benefits of trade for the low-,
medium-, and high-volume scenarios are estimated, in 1997 dollars, as
$6,478, $32,429, and $329,011, respectively. Therefore, based on these
calculations, positive net benefits would result from any of the
scenarios. The likelihood of introducing hog cholera and its associated
biological and economic consequences are sufficiently low as to warrant
allowing the proposed trade. It should be noted that the low-volume
scenario is considered by far the most likely; as stated previously,
the high-volume scenario is considered extremely unlikely.
Initial Regulatory Flexibility Analysis
In accordance with 21 U.S.C. 111, the Secretary of Agriculture is
authorized to promulgate regulations to prevent the introduction or
dissemination of any contagious, infectious, or communicable disease of
animals from a foreign country into the United States.
This proposed rule would amend the regulations to relieve certain
restrictions on the importation of pork and pork products from the
Yucatan by establishing new conditions for the importation of fresh and
processed pork and pork products from Yucatan into the United States
and would also provide for the movement of pork and pork products from
Yucatan through areas where hog cholera may exist while in transit to
the United States. This proposed rule would also amend the regulations
regarding the importation of fresh pork from Sonora to allow the
importation of pork products from Sonora and to modify the import
conditions for Sonoran pork and pork products so that those conditions
parallel the import conditions proposed for pork and pork products from
Yucatan. These proposed amendments would provide for the importation of
pork products from Sonora and for the in-transit movement of Sonoran
pork and pork products through areas where hog cholera may exist and
would make it clear that pork and pork products from Sonora must be
derived from swine slaughtered at federally inspected slaughter plants.
Over the past several decades, the U.S. pork industry has
experienced enormous structural change, which mirrors the overall trend
toward ``concentration'' in U.S. agriculture. According to the 1992
Census of Agriculture (the most recent census available at the time
this analysis was performed), the shift toward fewer but larger farms
has been dramatic: From 1969 to 1992, hog sales rose roughly 23
percent, while the number of hog farms decreased by about 70 percent.
During that same time period, the average-sized hog farm increased from
138 head per farm to 588 head per farm, and production became
increasingly more concentrated among larger producers. In 1992, for
example, roughly 6 percent of U.S. hog farms held over 50 percent of
U.S. hog inventory. The pork processing industry is also characterized
by a decreasing number of companies, operating increasingly large,
capital-intensive processing and packing plants that are dependent on
high volumes of raw product and that begin to realize economies of size
at about 4 million hogs per year.
The potential economic impacts of the proposed importation of pork
and pork products from the Yucatan region of Mexico are dependent on a
number of factors, such as where the products would be consumed in the
United States. While it is currently unknown exactly how Yucatan pork
would enter U.S. marketing and distribution channels and where it would
ultimately be consumed, it is likely that the pork would be shipped by
ocean vessel from Progreso, Yucatan, to a U.S. gulf port, most likely
in Texas or Florida, perhaps in Louisiana. If Yucatan pork were
purchased by a local retail chain or wholesaler in those States, it
would likely be consumed locally. If it were purchased by a national
wholesaler, it could be consumed anywhere in the United States. For the
purposes of this analysis, we examined both the possibility that
Yucatan pork would be consumed locally in selected Gulf Coast States
and also the possibility that it would enter national distribution
channels.
The Small Business Administration (SBA) defines small hog farms
(Standard Industrial Code 0213) as those earning less than $500,000 in
annual receipts. Industry experts suggest that only those hog
operations with inventories in excess of 2,000 animals would earn
$500,000 or more in sales annually. However, because the 1992 Census of
Agriculture combines all hog farms with more than 1,000 animals into
one category, for the purposes of this analysis, we counted operations
with more than 1,000 animals as large and operations with fewer than
1,000 as small.
Despite the trend toward fewer and larger hog farms described
above, according to the 1992 Census of Agriculture, fewer than 6
percent of U.S. hog and pig operations held inventories in excess of
1,000 animals (the average U.S. small hog farm held 160 head of stock
and had annual sales of roughly $27,000). So, by SBA standards, at
least 94 percent of all U.S. hog farms (191,347) were small entities in
1992. In Texas, Florida, and Louisiana, roughly 99 percent of hog farms
were small entities; in those States, small hog farmers held generally
22-40 head per farm and earned $3,000-$6,000 annually. In 1992, there
were at least 179,478 small hog farms nationwide, with 9,017 being in
Texas, Florida, and Louisiana.
The segment of the U.S. swine industry most likely to be first
exposed to hog cholera from imported pork products would be swine
operations that use human food waste as a feed source. Because the hog
cholera virus remains infective in pork products for a long time unless
the products are cooked, the disease could be transmitted to swine fed
discarded uncooked pork. Therefore, waste-feeding swine operations
would most directly bear the risk associated with the unlikely
importation of contaminated pork products from Yucatan. The risk to the
remainder of the U.S. swine industry would be through possible spread
from these initially infected waste-feeding operations, which must be
licensed by USDA.
In 1994, there were about 2,000 licensed waste-feeding
establishments in the continental United States, and this number has
not changed greatly since then. The majority of these premises were
located in Texas (871), Arkansas (248), Florida (309), and North
Carolina (178). Based on a 1994 APHIS survey, 1,173 waste-feeding
operations in the 48 conterminous states contained a total of about
114,000 pigs. Waste-feeding operations are predominantly small. Based
on the 1994 survey, the median number of swine per waste-feeding
premises was 34 (average of 97). Only 10 of the premises had more than
1,000 swine.
Whether we consider the United States as a whole or just selected
Gulf Coast States, the overwhelming majority of hog farms are small
entities, so it is reasonable to conclude that a substantial number of
small entities could be affected by this proposed rule.
Economic Impact on Small Entities
There is no general rule that sets threshold or trigger levels for
``significant economic impact;'' however, it has been suggested that an
economic effect that equals a small business' profit margin--5 to 10
percent of annual sales--could be considered significant.
We used estimated changes in producer surplus together with the
Census of Agriculture data on hog inventories and hog sales to develop
[[Page 8760]]
very rough estimates of the potential economic impact of the proposed
rule on small hog farmers across the United States and in selected Gulf
Coast States. To do this, we assumed that losses in producer surplus
would be shared equally among all hog farms in the geographic area
under consideration (either the entire United States or selected Gulf
Coast States). We then compared per-farm changes in producer surplus
with small farms' annual sales to determine whether the economic
impacts approach the 5-10 percent threshold.
If Yucatan pork entered national distribution channels and,
therefore, impacts were shared by all U.S. producers, there would not
be a significant economic impact on small entities no matter which
level (low, medium, or high volume) of imports is assumed. Producer
surplus losses per U.S. hog farm would range from $0.45 to $22.05 per
year, and these amounts are substantially less than 1 percent of the
typical small hog farmer's annual sales in every scenario.
If, under the high-volume scenario, the maximum 10,000 metric tons
were imported annually from the Yucatan and consumed locally in
Louisiana, Texas, and Florida, there could be a significant economic
impact on small pork producers in those States. In this case, a subset
of small hog farmers with considerably fewer head per farm and
considerably less in annual revenues than the average small U.S. hog
farm would face the most significant impacts of an increase in imports
resulting from the proposed trade. The producer surplus losses per
small hog farm in those States would range from $9.60 to $479.52. The
larger amount is equivalent to almost 8.14 percent of the typical small
hog farmer's annual sales and, therefore, could be considered a
significant impact.
In conclusion, it is clear that the proposed rule could affect a
substantial number of small hog farms because, as of the 1992 Census of
Agriculture, almost all hog farms meet the SBA size criteria for small
entity. However, it is unclear whether the rule would have a
significant economic impact on small hog farms. The latter issue
depends on how much Yucatan pork is imported and where it is consumed.
Under the most extreme assumptions (highest volume imports and limited
geographic area affected), small hog producers in selected Gulf Coast
States could experience losses in producer surplus equaling
approximately 8 percent of annual sales. Such losses would meet
``significant economic impact'' criteria. Under the most likely import
volume scenario (1,000 metric tons per year), the proposed rule would
not have a significant economic impact on small hog farmers either
nationwide or in selected Gulf Coast States.
Alternatives Considered
In developing this proposed rule, we considered either (1) making
no changes to the existing requirements for the importation of fresh
and processed pork and pork products from Yucatan and Sonora, (2)
proposing to allow the importation of pork and pork products from
Yucatan and Sonora under conditions different from those proposed, or
(3) proposing to allow the importation of pork and pork products from
Yucatan and Sonora under the conditions proposed in this document.
We rejected the first alternative because it would continue to
restrict the importation of pork and pork products from Yucatan under
the same conditions that apply to the remainder of Mexico. Because we
have determined that pork and pork products could be imported under
specified conditions from Yucatan and Sonora with negligible hog
cholera risk, taking no action would not be scientifically defensible
and would be contrary to trade agreements entered into by the United
States. We also rejected the second alternative, which would allow the
importation of pork and pork products from Yucatan and Sonora under
conditions other than those proposed. In developing the proposed
criteria for the importation of such pork and pork products, we
determined that conditions less stringent than those proposed would
present a risk of the introduction of hog cholera into the United
States via pork or pork products from regions of Mexico other than
Sonora or Yucatan. We further concluded that more stringent conditions
would be unnecessarily restrictive. We consider the proposed conditions
to be both effective and necessary in ensuring that the risk of hog
cholera introduction via pork and pork product imports from Yucatan and
Sonora remains at a negligible level.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. If this proposed rule is adopted: (1) All State
and local laws and regulations that are inconsistent with this rule
will be preempted; (2) no retroactive effect will be given to this
rule; and (3) administrative proceedings will not be required before
parties may file suit in court challenging this rule.
National Environmental Policy Act
An environmental assessment and finding of no significant impact
have been prepared for this proposed rule. The assessment provides a
basis for the conclusion that the importation of pork and pork products
from Sonora and Yucatan, Mexico, under the conditions specified in this
proposed rule would not present a significant risk of introducing or
disseminating hog cholera disease agents into the United States and
would not have a significant impact on the quality of the human
environment. Based on the finding of no significant impact, the
Administrator of the Animal and Plant Health Inspection Service has
determined that an environmental impact statement need not be prepared.
The environmental assessment and finding of no significant impact
were prepared in accordance with: (1) The National Environmental Policy
Act of 1969, as amended (NEPA) (42 U.S.C. 4321 et seq.), (2)
regulations of the Council on Environmental Quality for implementing
the procedural provisions of NEPA (40 CFR parts 1500-1508), (3) USDA
regulations implementing NEPA (7 CFR part 1b), and (4) APHIS' NEPA
Implementing Procedures (7 CFR part 372).
Copies of the environmental assessment and finding of no
significant impact are available for public inspection at USDA, room
1141, South Building, 14th Street and Independence Avenue SW.,
Washington, DC, between 8 a.m. and 4:30 p.m., Monday through Friday,
except holidays. Persons wishing to inspect copies are requested to
call ahead on (202) 690-2817 to facilitate entry into the reading room.
In addition, copies may be obtained by writing to the individual listed
under FOR FURTHER INFORMATION CONTACT.
Paperwork Reduction Act
In accordance with section 3507(d) of the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.), the information collection or
recordkeeping requirements included in this proposed rule have been
submitted for approval to the Office of Management and Budget (OMB).
Please send written comments to the Office of Information and
Regulatory Affairs, OMB, Attention: Desk Officer for APHIS, Washington,
DC 20503. Please state that your comments refer to Docket No. 97-079-1.
Please send a copy of your comments to: (1) Docket No. 97-079-1,
Regulatory Analysis and Development, PPD, APHIS, suite 3C03, 4700 River
Road Unit 118, Riverdale, MD 20737-1238, and (2) Clearance Officer,
OCIO, USDA,
[[Page 8761]]
room 404-W, 14th Street and Independence Avenue SW., Washington, DC
20250. A comment to OMB is best assured of having its full effect if
OMB receives it within 30 days of publication of this proposed rule.
This proposed rule would amend the regulations to relieve certain
restrictions on the importation of pork and pork products from Yucatan
by establishing new conditions for the importation of fresh and
processed pork and pork products from Yucatan into the United States
and would also provide for the movement of pork and pork products from
Yucatan through areas where hog cholera may exist while in transit to
the United States. This proposed rule would also amend the regulations
that provide for the importation of fresh pork from Sonora to allow the
importation of pork products from Sonora and to modify the import
conditions for Sonoran pork and pork products so that those conditions
parallel the import conditions proposed for pork and pork products from
Yucatan. These proposed amendments would provide for the importation of
pork products from Sonora and for the in-transit movement of Sonoran
pork and pork products through areas where hog cholera may exist and
would make it clear that pork and pork products from Sonora must be
derived from swine slaughtered at federally inspected slaughter plants.
Implementing this proposed rule would necessitate the use of two
paperwork collection activities, i.e., the completion of a foreign meat
inspection certificate and the placing of seals on shipping containers.
We are asking OMB to approve our use of these information
collections in connection with our program to import pork and pork
products from the Mexican States of Yucatan and Sonora.
We are soliciting comments from the public (as well as affected
agencies) concerning this proposed information collection activity. We
need this outside input to help us:
(1) Evaluate whether the proposed information collection is
necessary for the proper performance of our agency's functions,
including whether the information will have practical utility;
(2) Evaluate the accuracy of our estimate of the burden of the
proposed information collection, including the validity of the
methodology and assumptions used;
(3) Enhance the quality, utility, and clarity of the information to
be collected; and
(4) Minimize the burden of the proposed information collection on
those who are to respond, (such as through the use of appropriate
automated, electronic, mechanical, or other technological collection
techniques or other forms of information technology, e.g., permitting
electronic submission of responses.)
Estimate of burden: Public reporting burden for this proposed
collection of information is estimated to average 0.575 hours per
response.
Respondents: Full-time, salaried veterinarians of the Government of
Mexico.
Estimated annual number of respondents: 10.
Estimated annual number of responses per respondent: 4.
Estimated annual number of responses: 40.
Estimated total annual burden on respondent: 23.
Copies of this information collection can be obtained from
Clearance Officer, OCIO, USDA, room 404-W, 14th Street and Independence
Avenue SW., Washington, DC 20250.
List of Subjects in 9 CFR Part 94
Animal diseases, Imports, Livestock, Meat and meat products, Milk,
Poultry and poultry products, Reporting and recordkeeping requirements.
Accordingly, we propose to amend 9 CFR part 94 as follows:
PART 94--RINDERPEST, FOOT-AND-MOUTH DISEASE, FOWL PEST (FOWL
PLAGUE), EXOTIC NEWCASTLE DISEASE, AFRICAN SWINE FEVER, HOG
CHOLERA, AND BOVINE SPONGIFORM ENCEPHALOPATHY: PROHIBITED AND
RESTRICTED IMPORTATIONS
1. The authority citation for part 94 would continue to read as
follows:
Authority: 7 U.S.C. 147a, 150ee, 161, 162, and 450; 19 U.S.C.
1306; 21 U.S.C. 111, 114a, 134a, 134b, 134c, 134f, 136, and 136a; 31
U.S.C. 9701; 42 U.S.C. 4331 and 4332; 7 CFR 2.22, 2.80, and
371.2(d).
2. Section 94.20 would be revised to read as follows:
Sec. 94.20 Importation of pork and pork products from Sonora and
Yucatan, Mexico.
Notwithstanding any other provisions of this part, pork and pork
products from the States of Sonora and Yucatan, Mexico, may be imported
into the United States under the following conditions:
(a) The pork or pork product is from swine that were born and
raised in Sonora or Yucatan and slaughtered in Sonora or Yucatan at a
federally inspected slaughter plant that is under the direct
supervision of a full-time salaried veterinarian of the Government of
Mexico and that is approved to export pork products to the United
States in accordance with Sec. 327.2 of this title.
(b) If processed, the pork or pork product was processed in either
Sonora or Yucatan in a federally inspected processing plant that is
under the direct supervision of a full-time salaried veterinarian of
the Government of Mexico.
(c) The pork or pork product has not been in contact with pork or
pork products from any State in Mexico other than Sonora or Yucatan or
from any other region not listed in Sec. 94.9(a) as a region where hog
cholera is not known to exist.
(d) The foreign meat inspection certificate accompanying the pork
or pork product (required by Sec. 327.4 of this title) includes a
statement certifying that the requirements in paragraphs (a), (b) (if
applicable), and (c) of this section have been met and, if applicable,
a list of the numbers of the seals required by paragraph (e)(1) of this
section.
(e) The shipment of pork or pork products has not been in any State
in Mexico other than Sonora or Yucatan or in any other region not
listed in Sec. 94.9(a) as a region where hog cholera is not known to
exist en route to the United States, unless:
(1) The pork or pork product arrives at the U.S. port of entry in
shipping containers bearing intact, serially numbered seals that were
applied at the federally inspected slaughter or processing plant in
either Sonora or Yucatan by a full-time salaried veterinarian of the
Government of Mexico, and the seal numbers correspond with the seal
numbers listed on the foreign meat inspection certificate; or
(2) The pork or pork product arrives at the U.S. port of entry in
shipping containers bearing seals that have different numbers than the
seal numbers on the foreign meat inspection certificate, but, upon
inspection of the hold, compartment, or container and all accompanying
documentation, an APHIS representative is satisfied that the pork or
pork product containers were opened and resealed en route by an
appropriate official of the Government of Mexico and the pork or pork
product was not contaminated or exposed to contamination during
movement from Sonora or Yucatan to the United States.
Done in Washington, DC, this 18th day of February 1999.
Joan M. Arnoldi,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 99-4417 Filed 2-22-99; 8:45 am]
BILLING CODE 3410-34-P