Mad cow costs surge in Europe

PARIS, France -- The financial cost of mad cow disease in Europe has risen sharply with France announcing more than $400 million worth of emergency aid for affected farmers and the EU agreeing on a new $7 million testing programme for cattle.

The compensation commitment by Paris came as the Czech Republic joined a rapidly spreading boycott of French beef exports and after a plunge of 40 percent in domestic sales.

Prime Minister Lionel Jospin appealed for the mayors of several large French towns to put beef back on school menus accusing them of worsening the "national psychosis" by banning the meat.

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Jospin said new controls imposed by the government meant beef could now be eaten "without fear" but some mayors immediately rejected the prime minister's plea.

Gerard Caudron, the mayor of Villeneuve d'Ascq in northern France, said: "I'll serve that meat again, not when a prime minister asks me, but after I have guarantees from health authorities and when teachers and parents have been consulted."

In one piece of positive news for France, Britain has announced that it will not be banning French beef -- resisting any temptation to take revenge for France's refusal to lift an embargo slapped on British exports in 1996 over a mad cow epidemic there.

British Prime Minister Tony Blair said he backed France's decision to tighten controls on exports in line with the extra measures taken within France in response to consumer fears over bovine spongiform encephalopathy (BSE).

The Czech Republic, however, closed its borders to French beef joining Italy, Austria, Spain, the Netherlands, Poland, Hungary and Russia.

Scientists have linked BSE to a fatal brain-wasting human disease known as variant Creutzfeldt-Jakob disease (vCJD), which has killed at least 80 people in Britain and two in France.

In Brussels, a marathon meeting of EU farm ministers agreed on Tuesday to extend cattle testing for BSE in an attempt to ease fears over the disease.

"It's a miraculous result, an unhoped-for success," French agriculture minister Jean Glavany said afterwards.

But the meeting did not support France's request for an EU-wide ban on the use of the meat-and-bone meal, for pigs and poultry.

France last week outlawed animal feed made from recycled bones and carcasses and also banned T-bone steaks for human consumption.

The 3.24 billion franc ($417 million) compensation package announced by Glavany included aid for cattle farmers worth 400 million francs ($52 million).

Cattle industry traders will loan out a total of 500 million francs ($65 million) to their suppliers at special interest rates over a period of five years, he said.

The government also earmarked 450 million francs ($58 million) for developing the production of oilseeds and protein seeds to replace the banned animal feed.

Glavany said the country had done more than most to safeguard against the deadly mad cow disease.

"We're keeping tabs on the crisis day by day," he said.

Reuters contributed to this report.

EU extends tests for mad cow disease
November 21, 2000
Britain, France may head to court over beef ban
December 9, 1999
EU Commission says lift 'mad cow' ban on Britain
June 10, 1998
More proof links 'mad cow disease' to humans
October 23, 1996

European Union Health and Consumer Protection Directorate-General
Mad Cow Disease
World Health Organization BSE Fact Sheet
Human BSE Foundation

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