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China to Implement Measures to Curb Dairy and Beef Production Amid Falling Meat Prices

China aims to curb dairy and beef production due to falling meat prices. Will these steps stabilize the market and aid struggling farmers?

China’s meat prices have plunged as the economy has slowed, forcing decisive government intervention. As the world’s top meat eater, the nation is seeing significant price declines in pig, beef, dairy, and poultry, putting a financial burden on farmers. To stabilize the market and help farmers, authorities are already reducing dairy and meat output levels. Wang Lejun, the agricultural ministry’s Chief Animal Husbandry Officer, said that beef and dairy cow producers are suffering significant losses as a result of price drops of 12.1% and 12.5%, respectively, in the first half of the year. Beyond market dynamics, this problem influences food security and rural lives. By resolving the supply-demand mismatch, the government hopes to safeguard agriculture and maintain the long-term viability of the meat and dairy sectors.

The Economic Underpinnings of Meat Price Declines: China’s Experience 

The economic environment has a significant influence on China’s declining meat costs. A slowing economy, characterized by lower growth rates, directly impacts consumer spending patterns. As people restrict their finances, meat expenditure, frequently seen as a luxury, falls. Higher living expenses and economic uncertainty drive customers to seek cheaper food, further depressing prices.

This slowness impacts both manufacturing costs and supply networks. Farmers confront increasing operating costs but lower product market prices, resulting in financial distress. This has prompted demands for government intervention to stabilize the market. As a result, the government’s involvement in reducing output attempts to help farmers and rebalance the supply-demand equation, promoting a sustainable economic environment.

Challenging Landscape: China’s Livestock Industry Grapples with Supply-Demand Imbalance

China’s cattle sector is facing challenging conditions. In the first half of the year, beef prices plummeted 12.1%, while raw milk prices declined 12.5%, posing a considerable challenge for farmers: oversupply and reduced demand cause losses for beef and dairy cattle ranchers.

Overall, pig, beef, mutton, and poultry output rose by 0.6% yearly. Egg and milk output increased by 2.7% and 3.4%, respectively, contributing to a market oversupply and accelerated price decreases.

This circumstance exhibits a supply and demand mismatch, in which rising output and decreased consumption force prices down, putting the whole industry in danger.

Strategic Measures to Stabilize Dairy and Beef Production: China’s Plan to Curb Overproduction

China intends to reduce the overproduction of dairy and beef and stabilize prices. Herd structure optimization is a critical step in balancing output with market demand. This entails gradually removing elderly and low-yielding cows, increasing efficiency, and lowering expenses.

The government also intends to better connect output with market demands by improving breeding methods and supporting more market-sensitive approaches. These initiatives are designed to relieve financial constraints on farmers and build a more resilient cattle business.

A Bleak Financial Horizon: The Struggle of Beef and Dairy Producers Amidst Plummeting Prices 

The financial effect on livestock and dairy farmers has been significant. In the first half of the year, beef and raw milk prices declined by 12.1% and 12.5%, respectively. This price decline has resulted in enormous losses for producers with high expenses. Producers are improving herd structures, removing elderly and low-yielding cows to reduce overproduction and better meet market demand. Government measures have also been introduced to minimize breeding numbers, notably in March and June. While these steps have helped to stabilize hog prices, the beef and dairy sectors continue to suffer. Producers must strike a compromise between cutting production and sustaining operations, as prices are projected to stay low in the second half of the year, necessitating continued adaptation and resilience.

Historical Precedents in Government Interventions: Safeguarding China’s Agricultural Markets 

Government interventions to stabilize agricultural markets are not uncommon in China. Recently, the Chinese government took many initiatives to rectify market imbalances. Beijing implemented measures in March to curb the breeding sow population after pig farms’ fast development, which resulted in an excess of pork and financial losses for farmers.

In June, new criteria for controlling beef cow output were implemented. These strategies attempt to reduce excess supply and stabilize the market, allowing prices to recover. Such initiatives demonstrate the government’s proactive approach to controlling agricultural productivity and ensuring the economic well-being of the livestock industry.

Forecasting the Market: Persistent Low Prices Amidst Overproduction and Economic Slowdown

Looking forward to the year’s second half, market estimates suggest that beef and dairy prices will remain low. Despite attempts to reduce overproduction, supply exceeds demand, putting downward pressure on pricing—this situation for meat results from structural oversupply despite farmers’ attempts to alter herd levels. Dairy prices are projected to remain low owing to increased output and moderate demand. Analysts believe these low prices will provide little relief to manufacturers, who are already struggling with tight margins and financial losses. The more significant economic situation, characterized by a weakening economy and cautious consumer spending, complicates the forecast, implying that price stability may remain challenging.

Significant Decline in Meat Imports Highlights Domestic and Economic Shifts

China’s beef imports in the first half of 2024 fell 13.4% from the previous year. This decrease is particularly noticeable in pork and poultry imports, which have taken the most significant blow. The drop in meat imports is a dramatic reaction to local production trends and shifting consumer habits amid a faltering economy. The decreased reliance on imported meat relieves some of the burden on domestic farmers dealing with low pricing and overstock. However, it highlights deeper economic issues that may have long-term effects on demand and market stability.

The Bottom Line

China is halting dairy and meat production to synchronize with market needs and stabilize the agriculture industry. The drop in pig, beef, dairy, and poultry prices is due to an economic downturn and decreased consumer expenditure. Regulations on sow breeding and control over meat and dairy cow output are among the measures to ease the financial burden on livestock producers. When demand rebounds, these policies may constrain market supply and drive prices upward. China’s strategy emphasizes the necessity of balanced market intervention to ensure stability and food security. Global economic dynamics, climate change, and consumer behavior influence agriculture policy. Policymakers, industry stakeholders, and consumers must work together to secure the long-term development of China’s—and the global—meat sector.

Key Takeaways:

  • China plans to implement measures to curb dairy and beef production to prevent further price declines, adding to existing regulations on pork producers.
  • Shoppers are reducing meat purchases due to a slowing economy, leading to falling prices for pork, beef, dairy, and poultry.
  • The livestock industry has seen increased production, contributing to low market prices; pork, beef, mutton, poultry, egg, and milk production all rose in the first half of the year.
  • New regulations aim to optimize herd structures by eliminating older, low-yielding cows to better align production with market demand.
  • The Chinese government previously issued regulations to reduce the sow population due to an oversupply of pork, which helped stabilize pork prices.
  • Despite efforts to control production, beef and dairy prices are expected to remain low in the second half of the year.
  • China’s meat imports dropped significantly in the first half of 2024, reflecting shifts in domestic production and economic factors.

Summary:

China’s slowing economy has led to a significant decline in meat prices, affecting top meat eaters and putting a financial burden on farmers. The government is reducing dairy and meat output levels to stabilize the market, but beef and dairy cow producers are suffering significant losses. This affects food security and rural lives, leading to demands for government intervention to stabilize the market. The economic environment directly impacts consumer spending patterns, leading to a decrease in meat expenditure and higher living expenses. This slowness impacts manufacturing costs and supply networks, causing farmers to face increasing operating costs but lower product market prices, resulting in financial distress. China’s cattle sector is facing challenging conditions, with beef prices plummeting by 12.1% and raw milk prices declining by 12.5% in the first half of the year. Market estimates suggest that beef and dairy prices will remain low in the second half of 2024, as supply exceeds demand, putting downward pressure on pricing.

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Mastering Beef on Dairy Programs: Strategies for Thriving in an Uncertain Future

Uncover the essential strategies to future-proof your Beef on Dairy program. Are you prepared to excel in an unpredictable market? Master the art of adaptation and secure your success.

The merging of beef and dairy genetics is more than a trend; it is a beacon of innovation in the continuously expanding livestock business. This developing crossbreeding method can combine the qualities of beef and dairy cattle, resulting in increased output and carcass quality. However, it is the journey of overcoming the hurdles of this invention that will pave the road for long-term success, pushing us all to push the limits of what is possible.

Crossbreeding in the beef-dairy industry has the potential to combine the greatest features from both fields, but it also introduces complications. As this junction gathers traction, industry participants must plan their programs for the inherent volatility. Discover practical ways for navigating hurdles and maximizing potential in beef on dairy crossbreeding initiatives.

From Necessity to Innovation: The Evolution of Beef on Dairy Crossbreeding

Crossbreeding between beef and dairy has a long history, beginning in the mid-20th century to increase milk output. Market needs changed throughout time, necessitating a trade-off between milk supply and meat yield.

Initially, beef genetics were introduced into dairy cows to enhance carcass quality without impacting milk output. Successful examples include crossing breeds like Angus and Hereford with Holstein cows to generate hybrids with acceptable meat quality and high milk outputs.

Technological developments in the 1970s and 1980s, notably artificial insemination, hastened crossbreeding attempts. This resulted in better genetic selection and data collecting, revealing optimum crossings and management approaches.

Challenges included market opposition to hybrid meat, which was considered inferior, and unpredictability in progeny performance. Refined breeding aims and improved husbandry procedures helped resolve these difficulties over time.

Lessons from history highlight the necessity of rigorous genetic selection and improved reproductive technology. Modern beef on dairy businesses needs comprehensive performance data and a market-oriented strategy to navigate uncertainty and maximize possibilities.

Mastering Economic Factors: A Pathway to Profitability and Sustainability 

YearInitial InvestmentRevenueNet ProfitROI (%)
1$50,000$20,000-$30,000-60%
2$20,000$40,000$20,000100%
3$10,000$60,000$50,000500%
4$10,000$80,000$70,000700%
5$10,000$100,000$90,000900%

Understanding the economic dynamics influencing beef on dairy programs is critical for maintaining profitability and sustainability in a fluctuating market. First and foremost, market trends must be carefully evaluated. Rising consumer demand for high-quality meat has increased pricing and possibilities for dairy farmers. However, this demand varies with economic situations, consumer tastes, and global trade regulations, demanding a more complex approach to market research.

Cost/BenefitDescription
Cost: Initial InvestmentThe upfront expense required for acquiring high-quality beef genetics and implementing crossbreeding programs, including the cost of technology, infrastructure, and labor.
Cost: Maintenance & FeedingOngoing costs related to crossbred cattle care, nutrition, and health management may differ from pure dairy herd management expenses.
Benefit: Higher Market PricesCrossbred beef x dairy cattle can command premium prices in the market due to their higher meat quality, potentially leading to increased revenue streams.
Benefit: Improved EfficiencyUtilizing crossbreeding can result in animals with superior growth rates and feed conversion ratios, enhancing overall herd efficiency and productivity.
Cost: Genetic ManagementEnsuring the optimal selection of genetic traits requires detailed record-keeping and skilled management, entailing additional costs for expertise and resources.
Benefit: Diversified Product LinesEngaging in beef x dairy programs allows producers to diversify their product offerings, potentially reducing market vulnerability and dependency on a single revenue stream.

A cost-benefit analysis is another important consideration. The initial expenditures in genetics, feed, veterinary care, and infrastructural improvements might be significant. However, when handled properly, the benefits might outweigh the drawbacks. Crossbred animals, for example, often demonstrate hybrid vigor, which may lead to increased efficiency and carcass value when compared to purebred counterparts. Increased value may balance greater initial expenses, resulting in a positive return on investment.

Comprehensive financial planning tactics are beneficial and required for a beef-on-dairy operation’s long-term viability and growth. Precise planning, forecasting, and cash flow management are needed to deal with economic unpredictability. We may efficiently shift risk while protecting profits by using mechanisms like forward contracts and futures markets to hedge against price volatility. Diversifying income sources, such as value-added goods or agritourism, may improve financial stability and provide more control over success.

Dairy farmers should maximize profitability and reduce risks by remaining informed about market developments, performing cost-benefit evaluations, and implementing strategic financial planning. Such preventive actions guarantee that these businesses stay robust and flexible, ready to prosper in an uncertain future.

Genetic Selection: The Foundation of Progressive Beef on Dairy Crossbreeding 

Genetic selection is the foundation of successful beef on dairy crossbreeding. It is about recognizing and passing on exceptional features across generations.

Growth rate is essential since it influences manufacturing efficiency and time to market. The Angus and Charolais breeds thrive here, making them excellent for maximizing output timeframes.

Feed efficiency is another crucial element. Efficient feed conversion lowers costs and increases profitability. Breeds like Hereford and Simmental, noted for their high feed efficiency, may significantly improve these qualities in crossbreeding programs.

Meat quality influences market value, such as marbling, softness, and taste. Breeds like Wagyu and Piedmontese, known for their outstanding meat quality, are crucial. Their genetic contributions improve product quality and market position.

A successful crossbreeding approach utilizes modern genetic techniques and data analytics to improve results. Genomic selection and marker-assisted approaches enable accurate breeding choices.

Health and Nutrition: The Cornerstones of a Thriving Beef on Dairy Program

A successful Beef x Dairy program relies heavily on maintaining good health and nutrition. We can ensure our cattle prosper by providing them with a suitable diet and preventative treatment, immediately increasing output. Neglecting these regions might raise hazards, including disease outbreaks and diminished reproductive efficiency, affecting revenue. By putting health and nutrition first, we can ensure we do everything possible to safeguard our assets.

An optimum feeding approach begins with an analysis of crossbreds’ particular demands. Feeding programs should be adapted to individual metabolic needs, ensuring a diet rich in essential proteins, vitamins, and minerals. Use high-energy grains, excellent forage, and vitamins to compensate for any shortfalls.

Regular health monitoring and preventative care are essential. To prevent hazards, adhere to vaccination schedules and use biosecurity measures. Engage a professional veterinarian to evaluate herd health and recommend appropriate measures.

Animal welfare increases production, including stress management, sufficient housing, and compassionate treatment. You treat health and nutrition as interrelated, resulting in a strong foundation for maintaining productivity and mitigating hazards. This combination of diet and proactive health management strengthens your program against future uncertainty.

Integrating Sustainable Practices: The Moral and Strategic Imperatives for Beef on Dairy Programs 

Integrating sustainable agricultural methods into dairy operations is essential for long-term sustainability and ethical considerations. A comprehensive resource management approach may help producers lessen their environmental effects. Implementing rotational grazing systems, for example, improves soil health, lowers erosion, and increases biodiversity, resulting in better pasture usage and healthier livestock.

Water management is similarly essential. Water conservation techniques such as drip irrigation and rainwater collection may considerably reduce use. Advanced manure management techniques further limit nutrient runoff, protecting local waterways and maintaining ecological equilibrium. Using renewable energy sources like solar or wind power reduces greenhouse gas emissions and operating expenses over time.

Continuous improvement of these procedures is essential. Continuing education and adaptive management are critical for achieving regulatory obligations and customer expectations. Monitoring animal health and environmental parameters allows for data-driven choices, supporting sustainability. These solutions lower the environmental impact while increasing the economic resilience of cattle and dairy operations.

Embracing Technological Advancements: A Paradigm Shift in Modern Beef on Dairy Programs 

Technological innovations have transformed cattle and dairy programs, improving accuracy and efficiency. Notably, advances in breeding technology, such as genomic selection and sophisticated reproductive procedures like artificial insemination (AI) and embryo transfer (ET), have transformed genetic enhancement. These techniques provide pinpoint precision in detecting and propagating favorable features, enhancing herd health and performance.

Data analytics are critical for informed decision-making in cattle and dairy operations. Collecting data on animal health, growth rates, feed efficiency, and environmental factors may reveal trends, forecast results, and maximize resources. Farms that use data analytics have a competitive advantage by promptly adjusting to market needs, increasing animal care, and enhancing economic performance.

Farm management software has become indispensable in contemporary agriculture, enabling complete monitoring of farm operations ranging from inventory and labor management to financial planning and regulatory compliance. Digital technologies simplify regular operations, allowing manufacturers to prioritize key objectives and continual development. Furthermore, incorporating IoT devices and sensors allows for real-time monitoring, which improves the efficiency and resilience of beef and dairy operations.

To summarize, technology plays a critical role in cattle and dairy operations. Breeding technologies, data analytics, and farm management software contribute to the industry’s increased productivity, sustainability, and flexibility. These changing technologies will remain critical to cattle and dairy operations’ long-term viability and performance.

Fortifying Stability: Comprehensive Risk Management Strategies for Beef on Dairy Programs 

Risk management is critical to the resilience and success of any Beef on Dairy enterprise, particularly under unexpected settings. A complete strategy, including insurance, diversification, and contingency planning, may reduce dangers and improve stability.

Insurance is a crucial safety net in the fragile agriculture industry. Livestock insurance covers losses caused by illness, calamities, or other unanticipated occurrences, while crop insurance protects against low harvests. Partnering with specialist insurance providers guarantees that customized plans give financial protection while ensuring continuity even under unfavorable circumstances.

Diversification is essential for risk reduction, both genetically and operationally. Incorporating several genetic lines improves herd resilience and performance. Diversifying revenue sources, such as crop farming or specialty markets for beef and dairy products, helps mitigate market swings, promote innovation, and boost profitability.

Effective contingency planning entails anticipating interruptions and developing appropriate solutions to minimize effect. This covers methods for disease outbreaks, supply chain disruptions, and labor shortages. Regular updates and embedding these strategies into the operational culture guarantee that emergencies are handled quickly and coherently. Using data and technical tools for predictive analytics helps with early danger identification and proactive risk management.

A robust risk management framework combines these factors, resulting in a resilient Beef on Dairy program that can thrive unpredictably. Prioritizing insurance, diversifying, and building detailed contingency plans enable farmers to manage the agricultural terrain confidently and carefully.

Charting the Future: Innovations, Challenges, and Strategic Adaptations in the Dairy Industry 

The cattle and dairy business is transforming significantly due to technological breakthroughs, changing customer tastes, and environmental laws. Precision agricultural systems like AI, machine learning, and blockchain are used to improve herd management, genetic selection, and supply chain transparency. These technologies promise to improve operational efficiency and sustainability.

These prospects, however, are not without their obstacles. Stricter restrictions regarding sustainability and animal welfare will need novel compliance solutions. Climate change provides a danger that requires adaptable methods to ensure fodder availability and animal health.

Rising consumer demand for ethically produced and environmentally sustainable beef is both possible and a problem. Aligning with these expectations may result in higher expenses, but it also provides access to premium markets.

Stakeholders must be proactive, such as doing a SWOT analysis to identify weaknesses and investing in continuous education and technology. Collaboration with industry peers, academic institutions, and regulatory authorities will increase preparation and innovation.

To ensure a sustainable future in the beef and dairy business, embracing technology, following rules, and understanding customer preferences are essential.

The Bottom Line

The use of beef on dairy crossbreeding combines historical need with current ingenuity. Economic sustainability requires a thorough grasp of market dynamics and careful financial planning, while genetic selection ensures a strong stock. Health and nutrition are critical to program viability, and sustainable methods balance moral responsibilities with long-term benefits. Technological improvements provide unprecedented levels of efficiency and accuracy. Robust risk management measures are also required to protect stability from future uncertainty. Examining successful programs offers valuable insights into innovation and strategic foresight.

Managing your beef-on-dairy program requires ongoing study, preparedness, and adaptation. These characteristics guarantee survival and promote a robust, resilient organization. Preparation establishes a firm foundation; flexibility allows quick reactions to difficulties, and constant learning keeps your program at the forefront of industry innovations. These concepts form the foundation of a dynamic, future-proof beef on dairy program.

Key Takeaways:

  • Recognize the significance of genetic selection in enhancing productivity and carcass quality.
  • Implement comprehensive health and nutrition strategies to ensure the well-being and performance of hybrid cattle.
  • Integrate sustainable practices as both a moral obligation and a strategic advantage.
  • Embrace technological advancements to streamline operations and improve efficiency.
  • Adopt risk management strategies to fortify stability and mitigate uncertainties.
  • Draw inspiration from successful beef x dairy programs to innovate and remain competitive.
  • Navigate future challenges with an adaptable approach, incorporating the latest innovations and proven strategies.

Summary: 

The integration of beef into dairy genetics in the livestock industry is gaining popularity, aiming to improve productivity and carcass quality. However, challenges in crossbreeding remain, such as market resistance to hybrid meat, perceived inferiority, and variability in offspring performance. Rigid genetic selection and advanced reproductive technologies are crucial to navigating these uncertainties. Economic factors and cost/benefit analysis are also essential for profitability and sustainability. Comprehensive financial planning strategies, including budgeting, forecasting, and cash flow management, are necessary for sustaining and scaling a beef x dairy program. Tools like forward contracts and futures markets can transfer risk and safeguard profits. Diversifying revenue streams can enhance financial stability and producer success.

Download “The Ultimate Dairy Breeders Guide to Beef on Dairy Integration” Now!

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H5N1 Virus Detected in Beef for the First Time: FSIS Ensures Safety Measures in Place

Learn about the proactive steps the FSIS takes to safeguard beef after the unprecedented detection of the H5N1 virus in a dairy cow. What protocols and safety measures are implemented to ensure your food remains safe? Read further.

The unexpected discovery of the H5N1 virus—infamously associated with avian flu and known for its lethal impact on poultry—in a single beef sample has sent ripples across the food safety landscape. The USDA’s Food Safety and Inspection Service (FSIS) announced on Friday that the virus was detected in meat from a cull dairy cow, marking the first time the pathogen has been found in beef. This revelation came amidst rigorous testing of 96 dairy cows, a precaution taken after federal inspectors flagged signs of illness during routine checks. The source of the virus in the beef is believed to be from the cow’s exposure to infected poultry or contaminated feed. 

“The detection of H5N1 in beef underscores the vigilance and robustness of our food safety measures,” said a spokesperson from the Animal & Plant Health Inspection Service (APHIS). “While the meat was never allowed to enter the food supply, it reinforces the importance of ongoing surveillance and strict biosecurity protocols.”

This new finding broadens the scope of the H5N1 outbreak, which had previously been confined to poultry and dairy. Here are the key facts you need to know about this development: 

  • H5N1 viral particles were detected in tissue samples from one cow on May 22, 2024.
  • The remaining 95 dairy cows tested negative for the virus.
  • No meat from the tested cows entered the food supply.
  • The beef industry remains under stringent scrutiny to ensure safety.

The detection of H5N1 in beef marks a notable shift in the ongoing avian influenza outbreak, which has mainly affected poultry. This discovery points to the need for vigilant testing across all meat sectors. 

Although the infected meat did not reach the food supply, it underscores the effectiveness of our strict inspection and testing protocols. The quick action by FSIS and APHIS demonstrates that these systems are robust and prevent contaminated products from reaching consumers. 

This finding raises concerns about the virus’s ability to infect various livestock and potential cross-species transmission. However, researchers and officials are taking immediate action to investigate these aspects and implement necessary control measures to prevent H5N1’s spread, including enhanced biosecurity measures and increased surveillance in all meat sectors. 

While this development is troubling, the negative results from the remaining 95 cows provide some reassurance. FSIS and APHIS are conducting thorough investigations to understand the infection’s source and scope. 

Public health officials emphasize that beef is safe when properly handled and cooked to recommended temperatures. The H5N1 virus, while found in beef, does not pose a significant risk to human health if the meat is cooked thoroughly. Yet, this incident reminds us of the challenges of maintaining a secure food supply amid emerging diseases. 

Ongoing updates and findings from investigations will be vital. Your vigilance and adherence to food safety guidelines are crucial. The cooperation between FSIS, APHIS, and related agencies, along with your active participation, will help strengthen our food safety systems and protect public health.

Key Takeaways:

  • The H5N1 virus was discovered in meat from a single cull dairy cow during testing of 96 dairy cows by the FSIS and APHIS.
  • Federal inspectors noticed signs of illness in the cows, which led to their diversion and testing.
  • Only one cow tested positive for the viral particles, while the remaining 95 cows tested negative.
  • The contaminated beef did not enter the food supply, ensuring no risk to consumers.
  • Tracing the virus’s origin is ongoing, with FSIS and APHIS collaborating for a thorough investigation.
  • H5N1 has been previously identified in dairy cattle, poultry, and milk, but its occurrence in beef is unprecedented.
  • The robust food safety measures in place were reaffirmed, with further updates expected as testing advances.


Summary: The H5N1 virus, linked to avian flu and poultry, has been detected in a single beef sample, marking the first time the pathogen has been found in beef. The USDA’s Food Safety and Inspection Service (FSIS) announced the discovery during testing of 96 dairy cows, which were flagged as having signs of illness during routine checks. The source of the virus in the beef is believed to be from the cow’s exposure to infected poultry or contaminated feed. The discovery underscores the vigilance and robustness of food safety measures, as it reinforces the importance of ongoing surveillance and strict biosecurity protocols. The beef industry remains under stringent scrutiny to ensure safety. Concerns about the virus’s ability to infect various livestock and potential cross-species transmission are being investigated. Cooperation between FSIS, APHIS, and related agencies and active participation will help strengthen food safety systems and protect public health.

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