JBS issued a release stating business will not be jeopardized following Tuesday’s report of BSE found in a dairy cow in California.
The company told shareholders and the market in general international trade would not be hampered by the isolated case. JBS added that its diverse selection of proteins and global presence would prevent severe losses if the market were to react more negatively than expected.
Live cattle futures fell the daily limit Tuesday as rumors of BSE reached the trading floor. The limit loss was the biggest drop in seven months according to Reuters. Futures have recovered some of the previous day’s losses Wednesday morning.
While traders debated the effect the case would have on exports the EU and South Korea will continue to allow U.S. beef imports.
The USDA considered the case atypical and confirmed the animal in question had no risk of entering the food chain. As a result US authorities confirmed that beef entering the food chain continues to be as safe as ever.