	Background

BSE and vCJD are among a group of diseases known as transmissible  spongiform encephalopathies (TSE). However, since inspections began in 1997, FDA has  reported hundreds of firms out of compliance—most often for failure to  meet requirements to label feed that contained prohibited proteins or for  including prohibited proteins in cattle feed. The Economic Impacts of a U.S. Outbreak Could Be Severe, and the Health Risks Are Uncertain

If BSE were discovered in U.S. cattle, beef exports and domestic beef  consumption would drop, damaging many sectors of the economy,  according to federal economists. If the infected cattle were to enter the  food supply, some people might develop vCJD. For example,  hamburger chains and soup and frozen dinner manufacturers could see  dramatic declines in business. The United States Set Controls on Importing Animals and Met BSE Testing Goals Earlier Than Many Countries, but Its Feed Ban Is More Permissive

The United States prohibited the import of cattle and other ruminants 3 to  5 years earlier than many other countries. Its surveillance program to test  cattle brains for BSE also met international targets for the number of  animals tested earlier than many other countries. However, the United  States has a more permissive feed ban than other countries—one that  allows cattle feed to contain proteins from horses and pigs. FDA is  reviewing whether these ingredients should continue to be allowed in  cattle feed. Finally, as in most countries that are BSE-free, including the  United States, cattle brains and other central nervous system tissue can be  sold as human food. Therefore, forceful federal prevention efforts are  warranted to keep BSE away from U.S. shores. FDA’s transmittal to the Chairman did  not disclose this.
Why GAO Did This Study

Bovine spongiform encephalopathy (BSE), also known as mad cow disease, has been found in cattle in 23 countries. Countries with BSE have suffered large economic losses because of declines in both beef exports and domestic beef sales. The U.S. Department of Agriculture (USDA) and the Food and Drug Administration (FDA) have primary responsibility for preventing the introduction of BSE-contaminated cattle, beef, and cattle-derived products into the United States.

What GAO Found

GAO found that FDA has not acted promptly to force firms to keep prohibited proteins out of cattle feed and to label animal feed that cannot be fed to cattle. FDA's data on inspections are severely flawed, and FDA is unaware of the full extent of industry compliance. If BSE was discovered in U.S. cattle, many consumers might refuse to buy domestic beef; beef exports could decline dramatically as could sales in related industries, such as hamburger chains and frozen dinner manufacturers. Furthermore, some people might develop mad cow disease if infected cattle were to enter the food supply. The United States acted as many as five years earlier than did other countries to impose controls over imports of animals and animal feed ingredients from countries that had experienced mad cow disease. Similarly, U.S. surveillance efforts to test cattle brains for mad cow disease met internationally recommended testing targets earlier than did other countries. However, the United States' feed ban is more permissive than that of other countries, allowing cattle feed to contain proteins from horses and pigs. FDA is reviewing whether these ingredients should continue to be allowed in cattle feed. Finally, as in most countries that are BSE-free, cattle brains and other central nervous system tissue can be sold as human food.