Scrutiny for AMS

How well is the USDA AMS overseeing its approved vendors of the school lunch program? From the office of Rep. Rosa DeLauro:

Congresswoman Rosa L. DeLauro (Conn.-3), chairwoman of the House Agriculture, Food and Drug Administration Appropriations Subcommittee, sent a letter to Agricultural Marketing Service Administrator Lloyd Day, seeking answers about the agency’s effort to adequately oversee the operations at Hallmark/Westland Meats, an approved vendor for USDA’s food and nutrition programs, including the National School Lunch Program, in advance of the Subcommittee's annual hearing on April 9 to review the budget request for the Agricultural Marketing Service for FY 2009. AMS manages all federal contracts for the lunch program and other federal food and nutrition programs.

“Parents should be assured that the food their children eat is safe. Unfortunately, the illegal practices that were exposed at the Hallmark/Westland facility revealed the failure of the Agricultural Marketing Service to properly ensure that the company – one of the vendors for the school lunch program – was meeting its contractual obligations,” stated DeLauro. “This lapse is unacceptable and during the upcoming hearing I intend to press the agency’s administrator as to improvements that will be made to prevent future oversight failures.”

Below is the full text of the letter.

March 20, 2008

Mr. Lloyd Day, Administrator

Agricultural Marketing Service

United States Department of Agriculture

Room 3071 South Building

1400 Independence Avenue, S.W.

Washington, DC 20250

Dear Administrator Day:

I am writing to express concern over the potential failure of the Agricultural Marketing Service (AMS) to provide adequate oversight of the operations at Hallmark/Westland Meats, an approved vendor for USDA’s food and nutrition programs, including the National School Lunch Program.

As you know, USDA’s historic 143 million pound recall of beef products from the Hallmark/Westland facility in California was the result of illegal practices. Unfortunately, it was an undercover investigation by the Humane Society of the United States (HSUS) that exposed the extent of the violations of law, regulations, and contractual obligations. Despite the oversight of two agencies – the Food Safety and Inspection Service (FSIS) and AMS – USDA was not able to discern these violations.

Pursuant to the technical requirements for the sale of frozen ground beef products to USDA, approved vendors that do business with AMS must agree to abide by certain contractual conditions before they can sell their meat products to USDA. One of the conditions include that all cattle whose meat is harvested “shall be humanely handled in accordance with all applicable FSIS regulations, directives and notices.” Another condition is that “meat from carcasses of non-ambulatory disabled cattle will not be included in USDA purchased ground beef products.” Based on the information available, it would seem that there is serious doubt as to whether Hallmark/Westland satisfied those contractual obligations with AMS.

Furthermore, it was obvious based on the HSUS video that the non-ambulatory disabled cattle at Hallmark/Westland were wallowing in manure in the holding pens at that facility. This footage was especially disturbing given that it is well known that manure could harbor the E. coli 0157:H7 pathogen.

Another critical issue associated with the Hallmark/Westland recall involves company liability. According to USDA Announcement LS-20 (April 2005) – Purchase of Frozen Beef Products for Distribution to Child Nutrition and Other Federal Food and Nutrition Programs – the contractor shall be held liable for failure of the commodity to meet all of the contract and specifications requirements. This announcement further states that, in the event product is recalled due to a health or safety risk, the contractor is responsible for removal and replacement of recalled products and reimbursement of State and local costs incurred as a result of the recall. These costs include, at a minimum, storage, transportation, processing, and distribution of the commodities.

In preparation for your upcoming appearance before the House Agriculture Subcommittee on Agriculture, Rural Development, Food and Drug Administration and Related Agencies Appropriations on April 9, I am requesting that you provide the Subcommittee with the following information:

1) The list of actions AMS has taken to ensure that Hallmark/Westland is being held liable for the recall, pursuant to USDA Announcement LS-20.

2) All AMS audit reports for Hallmark/Westland Meats since it became an approved vendor for USDA meat purchases;

3) All cooperative agreements between FSIS and AMS regarding inspection activities related to USDA meat purchase programs;

4) A detailed explanation of the microbial testing program used by AMS for the beef products it purchases from approved vendors;

5) The role is AMS playing in the recovery of the 143 million pounds of beef that has been recalled by FSIS.

Please provide this information to the subcommittee by April 3, 2008. Thank you very much for your attention to this issue. I look forward to your response.

Sincerely,

ROSA L. DeLAURO

Chairwoman

House Appropriations Subcommittee on Agriculture

Rural Development, Food and Drug Administration,

and Related Agencies