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It is April of 2021. What should Dr. Choi do about the public policy issues and why? ID The Chinese government allegedly gives illegal (per

It is April of 2021. What should Dr. Choi do about the public policy issues and why?

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ID The Chinese government allegedly gives illegal (per international trade laws) subsidies to Chinese producers to breed mealworrns. a competitor insect to the REF. This allows the producers to sell these products in the U.S. market for about 2): to 3x less per unit than the prices of BSF. Furthermore. mealworrns can be raised with any feedstock, including municipal waste {like garbage from the city), whereas BSF can be raised with only feedstocks approved by the US. Department ongriculture {USDA}, such as the leftover grains and produce from commercial food processing [e.g.. a cannery). The USTR is currently collecting data from US. industries that claim they are injured by unfair practices by the Chinese government. The BSF industry, to date, has not submitted any information to this investigation. While a few ofthese industries are in the food space, most are larger industries in manufactured products and services. Typically, the USTR will take about six months to do their collection before they would begin drafting their recommendation to the President (that would take another 36 months). President Biden has publicly stated in his 202.1 State of the Union address that he wants China to abide by the agreed upon rules of international trade and that he would take action against any transgressions by the Chinese goverrunent. Dr. Choi's Decision Dr. Roy's passion is science and studying insects, not worrying about public policy. That is why she hired Dr. Choi to work on many aspects of EVD's business, including doing meir due diligence about me policy environment as they prepared for meir $ [0 million dollar Series A funding from the investors. Dr. Roy has great confidence in Dr. Choi. promising to give her \"whatever it takes" to increase the growdl of EVO. For now. she needs to worry about these political issues sitting in front of her. Your Final Exam Question: it is April of2ll2l. What should Dr. (.'ltoi do about the public policy issues and why? 11 Appendix 1 Representative Kay Granger Brief Bio and District Information Republican-Texas District 12 U.S. House of Representatives 1 17th Congress (first elected November 1997) Committees Appropriations Caucuses Congressional Caucus on Community Health Centers, Co-Chair Congressional Caucus for Women's Issues, Vice Chair Congressional Arts Caucus Congressional Navy and Marine Corps Caucus Army Aviation Caucus Congressional Caucus on Aviation Texas Caucus on Shale Oil and Gas Leading Employment Industries of District 12 Transportation (DFW is in district) Aviation Finance Healthcare Education Oil & Gas Recreation and Tourism12 Appendix 2 EVO Systems Financial Statements (unaudited) 2018 2019 2020 Revenues BSF Sales 40 250 450 Consulting 100 120 230 total revenues 140 370 680 Expenses Salaries & Benefits 400 500 800 SG&A 5 16 69 total expenses 405 516 869 Profit (Loss) (265) (146) (189) Units in $1,000 USD13 Appendix 3 Campaign Contributions to Federal Elections 2020 Election Cycle Poultry & Feed Industry: Top 10 Contributors Contributor Amount % Democratic % Republican National Chicken Assn. $1,645,000 35 65 National American Feed Assn. $1,425,047 33 67 Tyson Foods $668,159 45 55 Pilgrim's Pride $466,000 11 89 Organic Poultry Association $245,000 60 40 Ralston Purina $1 17,000 33 67 Pascal's Provisions $ 71,000 40 60 Iowa Poultry Assn. $ 56,600 10 90 Organic Bug Association $ 40,000 65 35 J. Boubour Poulet Co. $ 10,000 100 Source: Center for Clean Politics, Washington DC. 2021.\f15 Appendix 5 Top Ten Chicken Producing States in USA (2020) Leading 10 U.S. states based on number of chickens in 2020 (in 1,000 heads)" lowa 59 825 Indiana 44 498 Ohio 43 127 Pennsylvania 36 017 Georgia 31 277 Texas 30 895 North Carolina 23 558 Mich gan 18 480 Arkansas 18 480 Calfornia 17 224 10 000 20 000 30 000 40 DOO 50 000 60 000 70 000 Number in thous and heads Sources Additional Information: US Department of Agriculture; Economic Research United States; US Department of Agriculture; Economic Research Service; as of December 2020 Service Statista 202116 Appendix 6 Top Aquaculture Producing States in the USA (2017) Aquaculture Production Highlights, 2017 VALUE 21% PRODUCTION 17th Marine and Freshwater National $1.5 626 billion million pounds Totals 1.2%% from 2016 1.2% from 2016 MARINE FRESHWATER MARINE FRESHWATER $397 million $707 milion 82 million 543 million pounds Marine OYSTERS CLAMS Species Totals $186 million $129 million 36 million pounds 9 million pounds SALMON MUSSELS SHRIMP $61 million $10 million $10 million 32 million pounds 4.9 million pounds 4 milion pounds Regional Marine ATLANTIC Totals 39% of value PACIFIC* GULF OF 39% MEXICO of value 22% of value NOAA Aluthe and Crawl ing included in Ion Packle is FISHERIES17 Appendix 7 Leadership Positions in the 117" U.S. Congress Senate and House of Representatives US Senate US House of Representatives 100 Senators 435 Representatives Democrats - 49 Democrats - 218 Republicans - 50 Republicans - 212 Independents - 1 (caucus with Democrats) Independents - 0; Vacancies - 5 Leadership #Majority Leader- Charles Schumer (NY) Majority Leader- Steny Hoyer (MD) Majority Whip- Richard Durbin (IL) Majority Whip- Jim Clyburn (SC) Minority Leader- Mitch Mcconnell (KY) Minority Leader- Kevin Mccarthy (R-CA) Minority Whip- John Thune (SD) Minority Whip- Steve Scalise (LA) *Speaker of the House - Nancy Pelosi (D- CA) *Note: In the Senate, the Majority Leader is the most powerful office. In the House, the Speaker of the House is the most powerful office.18 Appendix 8 House Select Committee on the Climate Crisis 1 17th Congress (2021-22) Majority - Democrats Committee Chair Rep. Kathy Castor Florida - 14 Rep. Suzanne Bonamici, Oregon - 01 Rep. Julia Brownley, California - 26 Rep. Jared Huffman, California - 02 Rep. A. McEachin, Virginia - 04 Rep. Mike Levin, California - 49 Rep. Sean Casten, Illinois - 06 Rep. Joe Neguse, Colorado - 02 Rep. Veronica Escobar, Texas - 16 Minority - Republicans Ranking Member, Rep. Garret Graves, Louisiana - 06 Rep. Gary Palmer, Alabama - 06 Rep. Buddy Carter, Georgia - 01 Rep. Carol Miller, West Virginia - 03 Rep. Kelly Armstrong, North Dakota - 00 Rep. Dan Crenshaw, Texas - 02 Rep. Anthony Gonzalez, Ohio - 1619 Appendix 9 Senate Committee on Environment and Public Works 1 17th Congress (2021-22) Majority (Democrats) Thomas R. Carper (Chairman), DE Benjamin L. Cardin, MD Bernard Sanders, NH Sheldon Whitehouse, RI Jeff Merkley, OR Edward Markey, MA Tammy Duckworth, IL Debbie Stabenow, MI Mark Kelly, AZ Alex Padilla, CA Minority (Republicans) Shelley Moore Capito (Ranking Member), WV James M. Inhofe, OK Kevin Cramer, ND Cynthia Lummis, WY Richard Shelby, AL John Boozman, AR Roger F. Wicker, MS Dan Sullivan, AK Joni Ernst, IA Lindsey Graham, SCEVO Conversion Systems and the Black Soldier Fly It's just April of 2G2] and Maggie Choi is already having a busy year.r Born and raised on a small farm outside of Brownwoo-d, in central Texas, she left the state as a young woman to study biology and anthropology at Williams College in Massachusetts. After college, homesick, she turned down a wellpayingjob at a Bostonbased pharmaceutical company and instead took a modestly paid job at the district office of US. Representative Kay Granger {RTX 12'II Congressional District) in Fort Worth. TX] 2 is a district that stretches from Fort Worth to encompass many nlral areas to its west (see Appendix I for description of district as well as Rep. Granger). Alter working in Representative Granger's office for five years, where she ultimately was promoted to deputy district director. she decided to return to school to pursue her doctoral studies in entomology at Texas A&M University (TAMU). At TAMU, she worked in Dr. Vineeta Roy's lab and wrote her dissertation on a remarkable insect, the black soldier fly (BSF). After receiving her masters and PhD. in 2020. Dr. Choi joined EVO Conversion Systems {hereinafter EVO; more below), Dr. Roy's small. 8-person, start-up company, in College Station. EVE), using technology and knowhow developed at TAMU. was in the business of rearing and selling BSFs. BSF has several uses, but one of its primary ones is as a high protein feed. especially for poultry, hogs and fish (via aquaculture). As part ofher many duties at EVD, Dr. Choi had the task of understanding the policies that could drive or hinder their business. This was particularly important to know now, because EVO was gearing up for their Series A funding and the investors were worried about the policy environment surrounding their business. The politics of food, in general, especially how food is grown or reared, in particular, was becoming increasingly complicated. At one point, all that poultry or hog producers needed to worry about on the public policy side were the agricultural support programs contained in the farm bills that made their way every few years through the Agriculture committees in the U.S. House of Representatives and the Senate and were administered by the LLS. Department of Agriculture (USDA). Feed companies stepped into the fold, just trying to maximize their production and drive down costs of the various feeds that they sold to these customers. Now. the issues about food policies have expanded on almost every dimension. The range is huge: human health concerns related to obesity, cardiac and coronary diseases; the use ofgrowth hormones and steroids and other concerns about what is fed to animals for human consumption [like hogs and chickens]: animal husbandry; land management; greenhouse gases; the use of human food {e.g., soy, corn. rice) for animal feeds: and unjust labor practices, just to name a few. Additionally, many stakeholders, including environmental and animal rights groups, protested against many elements of the commercial poultry, meat. and aquaculture industries. For example, the Sierra Club, an environmental NGO, sued commercial hog producers for contaminated run off from many of the water holding ponds associated with pig farms. Many humanitarian groups lamented that foods suitable for human consumption like corn {maize} and soybeans are used for feedstock for animals and fish. Academic studies linked meat production, particularly raising hogs and beefcattle, as contributing towards greenhouse gases and climate warming. In the U.S.. P.E.T.A.. a NGD fighting against animal cruelty. in 2020 began a social media campaign to educate people about the diseases and suffering of chickens kept in close quarters for industrial production. Moreover, \"Iron Chef' Masaharu Morimoto. famous for his fish-based dishes, in a 20 Appendix ll] Consumer Poll 2021 Have you ever heard of hormone or steroid treated beef or chicken? Yes: 24% No: 58% Unsure: 1 8% Have you ever eaten hormone or steroid treated beef or chicken? Yes: I 3% No: 3 3% Unsure: 54% Would you ever eat hormone or steroid treated beef or chicken? Yes: 20% No: 65% Unsure: ] 5% Do you think that hormone or steroid treated beef or chicken is bad for your health? Yes: 64% No: 19% Unsure: IT% IS organically raised beef or chicken better for your health than hormone or steroid treated beef or chic ken? Yes: 72% No: 10% Unsure: 18% 21 Appendix 11 Estimated Costs to the Private and Public Sectors From Diet-Related Health Problems For the Year Ended December 31, 2020 Health Problem Linked to excess Cost to private Cost to public health food consumption companies in systems in terms of of terms of higher excess medical insurance and emergencies absenteeism Colon Cancer Beef, Pork $ 8.3 billion $ 15.5 billion Coronary Heart Potatoes, Refined $ 32.0 billion $ 96.4. billion Grains, Beef, Pork, Fats Diabetes Sugars, Alcohol, $ 13.7 billion $ 47.6 billion Beef, Pork High Cholesterol Eggs, Beef, Fats, $ 22.3 billion $ 94.4 billion Potatoes, Refined Grains High Blood Pressure Fats $ 17.4 billion $ 65.1 billion22 Appendix 12 Senate Committee on Agriculture, Nutrition & Forestry 117 Congress (2021-22) Majority (Democrats) Debbie Stabenow, Chairwoman, (Democrat - Michigan) Patrick Leahy (Democrat - Vermont) Sherrod Brown (Democrat - Ohio) Amy Klobuchar (Democrat - Minnesota) Michael Bennet (Democrat - Colorado) Kirsten Gillibrand (Democrat - New York) Tina Smith (Democrat - Minnesota) Richard Durbin (Democrat - Illinois) Cory Booker (Democrat - New Jersey) Ben Ray Lujan (Democrat - New Mexico) Raphael Warnock (Democrat - Georgia) Minority (Republicans) John Boozman, Ranking Member, (Republican - Arkansas) Mitch Mcconnell (Republican - Kentucky) John Hoeven (Republican - North Dakota) Joni Ernst (Republican - Iowa) Cindy Hyde-Smith (Republican - Mississippi) Roger Marshall (Republican - Kansas) Tommy Tuberville (Republican - Alabama) Charles Grassley (Republican - Iowa) John Thune (Republican - South Dakota) Deb Fischer (Republican - Nebraska) Mike Braun (Republican - Indiana)CNN international interview in March of 202]. publicly shamed the aquaculture industry for the poor quality of le flesh due to the foods fed to farmraised fish. The Black Soldier Fl}: jBSEI Black Soldier F ly [Hermetia illucens] is a nonpest insect species distributed worldwide in temperate and tropical regions. lts larvae eat a wide range of organic material. including food waste. Given its diet and its high rate of reproduction, the REF is an efficient transformer of waste. BSF larvae can grow on any organic waste and convert the manure into high protein and lipids. BSF has an important application to the animal (poultry. hogs] and aquaculture {sh} feed industry as alternative meal source to soybased feeds. As it is rich in protein {40-44%} and lipid {'iS'i'u], it emerged as a protein alternative source for animal feed applications. Furthermore. it is an excellent quality feed; having better nutritional properties than soy-based feeds. BSF is also an excellent source ofproteins in domestic animal (e.g.. dogs and cats} food. Owing to this. in 2018. the European Union. Canada. and the USA governments have approved the use of BSF derived products for feed. agriculture. and pet food applications. thereby accelerating the growth of the BSF industry. Moreover. BSF has other applications. It is possible to derive high quality chitin from the defatted BSF exoskeleton. which is also one of the fastest growing {compound annual growth rate or CAGR +19%] biopolvmers. This chitin can he further processed into a highquality chitosan, which has potential applications in agriculture. pestcontrol. water treatment. food preservation. textile. cosmetics, and others. Figure 1. Bios}? .S'oid'ier Ff} Figure 2. Bios}? .S'oid'ier Ff} [arms LIFE CYCLE of the BLACK SOLDIER FLY Figure 3. Life Cycle of BSF (~100 days) The BSF Industry* "Note: Much of this information is from a 2020 Report by Meticulous Research At commercial scale, companies rear (raise) the BSF by feeding it food and other organic wastes. Current estimates are that right now the world produces 1.3 billion tons of food waste per year. In the U.S., we waste about 40% of the food produced, from the field, through distribution and retail, and at the household levels. Furthermore, food waste accounts for a huge share of greenhouse gas emissions worldwide. The BSF is adaptable to a wide range of food wastes. For example, EVO uses spent grains (left- over malt, barley, and other grains) from the beer brewing process (they have an ample local supply from all of the breweries in central Texas). It is possible to use other waste feedstocks, including municipal wastes, like is being done in China. Companies in the U.S., because of U.S. Food and Drug Administration (FDA) regulations, however, use only plant-based inputs as feedstock. In terms of value, the global BSF market is expected to reach $539.4 million by 2025, supported by a CAGR of 30.6% during the forecast period. This market is driven primarily by increasing global meat (beef and hogs) and poultry demand, growing fish demand supported by the aquaculture industry, which drives demand from animal feed industry for alternative proteins, especially because of the rising prices of soy meal (which has some protein). This demand is worldwide: both developed and developing countries. However, factors such as non-standardized regulatory framework across the world, little regulation in the U.S, and limited acceptance and approval for BSF application in human diet (you can eat BSF directly!) hinder the growth of this market. Moreover, an increasing number of health conscious consumers are demanding environmentally safe and chemical-residue-free meat and fish. Such factors are leading meat producers to adopt insect-derived feed such as BSF larvae protein meals. Furthermore, insects are quickly becoming price competitive (although still higher) alternative protein source as compared to fish meal and soymeal for animal feed.EVO Conversion Systems EVO Conversion Systems (EVO) is a start-up company in College Station, TX, launched in 2018 by Dr. Roy, a prominent Professor of Entomology at Texas A&M University (TAMU). EVO is a small company, with an estimated value of about $2 million. A small group of investors provided the initial equity that was supplemented by a $500,000 grant from TAMU's Start-Up Fund (to support start-ups from TAMU research, where the university retains a 1% equity share and the rest is a grant). In 2021, EVO has only eight employees (3 with PhDs). At their warehouse-like facility, they have equipment for rearing BSF larvae (like fermentation tanks, mixing machines, dosing machines, and heaters for bioconversion), as well as equipment for receiving inputs, drying, packaging, and holding inventory. EVO has a small lab on site but just for quality control purposes. They also have a small business office, three trucks for deliveries, a forklift and tractor. Costs are mostly salaries. The feedstock (mostly spent grains from breweries in the College Station-Austin area) is free (except for the transport to pick it up). At present, EVO has two revenue streams. First, they sell packaged BSF larvae, called Poppers, mainly to the chicken and aquaculture industry. They have variable size packages: 50# bags for commercial users and #10 bags for backyard and hobby farmers. Their customers are primarily small commercial producers and hobby farms in Texas, Oklahoma, and Arkansas. Second, they sell consulting services to other companies and researchers who wish to rear BSF. These tend to be "one-off" projects (such as to get someone going) but they tend to last at least for one year. Some of these clients are located outside of the U.S. Appendix 2 has EVO's income statement. EVO is a member of the National Agricultural Feed Association (NAFA), the industry-wide trade group that includes the large 'conventional' feed companies like ADM and Cargill, as well as smaller and "unconventional' (e.g., insect-based proteins) ones like EVO. The NAFA is a major contributor to Republican candidates (Appendix 3). In addition, EVO is a member of the Organic Bug Association (OBA), which only contains companies rearing and selling insects as well as academic institutions that do research on BSFs. Dr. Roy serves on the policy coordinating committee of the OBA, which focuses upon public policies affecting the BSF industry. The OBA has a small fund to support candidates for elected office (Appendix 3). Competition within the BSF Sector As the BSF industry is relatively new, most of the companies are small like EVO. Phoenix Worm, based in the U.S., about the same size as EVO. Beta Hatch is smaller but they just received a $5 million investment so they can expand their production. The largest companies are in China. JM Green and Unique Biotech, both that work with provincial and city governments on the waste management side as well as with the central government on the agriculture side, are considerably larger (about 10X) than EVO. Most of their business, so far, is domestic within China, although JM Green has made small export sales into the Phillipines. There are other BSF companies worldwide, including Malaysia, Australia, Belgium, and Canada. Appendix 4 shows where these companies are located.(.'omperm'on'om other Feedstock At the commercial level, large agriculture companies like Archer Daniels Midland (ADM) and Cargill manufacture and market mash (for chicks] and pellets (for adults] that they sell to colnmercial buyers, like Tyson Foods. These are very large manufacturing operations. The anilnal feeds are generally grain based (like with corn or soy) and need to be supplemented with cenain proteins, amino acids, and vitamins. Since animals {e.g., chickens] oftentimes live in crowded conditions, antibiotics are regularly included in these feeds. Proteins colne from many sources, including rendered animals or fishmeal. The advantage of these feeds to some oftheir customers is price. They cost about [#3 per bird the price of feeding with BSF larvae. However, birds fed this way may not be as healthy and avorful than birds fed with millworms (another insect] or BSF larvae. Millworms are also used to feed chickens, typically as a supplement to other feeds. Millworms are also an efcient reproducer of proteins and are reared with organic feedstocks like municipal waste streams. Almost all millworrn production is in China. The cost of millworrns is about 12 the price of BSF larvae. Relative Feed Costs Per Chicken Soybased pellets Millworms . BSF larvae 3 Chicken iluiustgr The US. has a robust chicken industry. the most commonly produced and eaten animal. with an inventory of over 5] ll million chickens. Americans eat more chicken than anyone else in the world 93.5 pounds per capita in 2018 the number one protein consumed. The trend towards chicken consumption is upwards. especially as many health conscious consumers switch away from beef. In 20l9, chicken production rose to around 44 billion pounds. Iowa had the highest number ofchickens ofany U.S. state in 2(120 with about 60 million heads. Indiana and Ohio calne in second and third place. with around 44.5 million and 43 million heads respectively. (Appendix 5]. Chickens are omnivores and enjoy a variety of fruits. vegetables. grains. and even table scraps. However, since chickens oftentimes live in crowded conditions, especially in commercial production, they are more susceptible to metabolic and nutritional diseases. As such. in cornlnercial production, hormones, steroids, and antibiotics are regularly included in the feeds. Ag uacu [turn in dustry Over the last decade, the world has witnessed enormous growth in the aquaculture sector of many developing countries of Asia and Africa, as well as the US. [Appendix 6]. Nutrition and feeding play a central and essential role in the sustained development of aquaculture. Hence, fertilizers and feed resources are continuing to dominate aquaculture needs. In fish farming, feed represents 40-50% of the production costs. Fish nutrition has advanced dramatically in recent years with me development of new balanced commercial diets that promote optimal sh growth and health. The essential nutrients for fish growth are amino acids. fatty acids, vitamins, minerals, and energyyielding macronutrients (protein, lipid, and carbohydrate]. Therefore. BSF larvae can fulfil this role as an alternative source of protein for fish feed. In 2018. the 1.1.5. Food and Drug Administration (FDA) approved the use of insects as an ingredient in certain fish. Public Poligy Issues in 2021 It is spring of 2021 (the beginning of the 1 IT" Congress. Democrats hold majority positions in the US. House and the Senate is 50-50 but Democratic controlled (Appendix T). Delnocrats also hold the Presidency with President Biden. At this time. the ESP industry faces three public policy issues: {1) Waste Streams Greenhouse Gases Reduction Pilot Bill [Congress] {2) The Food Label Act Bill (Congress) {3) Trade with China (Executive Branch] {1) Waste Streams Greenhouse Gases Reduction l'ilnt {Congressional hill) The term \"Green New Deal" was first used by Pulitzer Prize-winner Tholnas Friedman in January 2007. America had just experienced its hottest year on record and Friedlnan recognized that there was not going to be a palatable, easy solution to climate change. It was going to take money. effort. and upsetting industries like fossil fuels. power. and transportation that has always been very generous to politicians with campaign contributions and in turn received policies that supported their sectors. However, during 2020. progressive Democrats resurrected the term Green New Deal. particularly in the House of Representatives. to cover a number of initiatives aimed to reduce emissions of greenhouse gases. Furthermore. during the campaign, Joe Biden. now President Biden, spent a lot of tilne waming about the dangers of clilnate change. Recently. on a speech made on Earth Day in April 2(121 , President Biden proclaimed that the US. would decrease its carbon emissions in half of the current levels by 2035. an ambitious target. leaving no stone unturned as to where to reduce emissions. As such, the l1?"Ill Congress {beginning in 2021} has been busy with introductions ofclimate related bills into many committees. One ofthose committees. the House Select Committee on the Climate Crisis. chaired by Kathy Castor [DI-FL], has scheduled hearings on several climate bills. See Appsndtr 8 for all of the members. lDue of the bills that they are considering. called "Waste Streams Greenhouse Gases Reduction Pilot Bill." would provide mding ofup to ill million for pilot projects that demonstrate how to reduce greenhouse gases from municipal or commercial waste streams. The intention is to fund efforts by private organizations [nonprofits or forprot companies} that could divert significant amounts of waste from landfills or incinerators. The Committee has not yet decided the scope of the bill but committee staffers have oated an idea of about 100 of these projects scattered across the country. If passed and signed into law. the US. Environmental Protection Agency would administer the bill. Of course. the Committee is considering many other bills about climate. almost all of which touch larger sectors (e.g.._ oil and gas; transportation) and have much larger costs (in the tens or hundreds of billions ofdollars). Senators Alex Padilla (DCA) and .Ioni Ernst (RID) introduced a companion bill into the Senate Committee on Environment and Public Works [Appendix 9). [t has not yet been set for hearings. The Chair of the Senate Committee on Environment and Public Works, Senator Tom lCarper [D- DE], is a longtime friend of President Biden. {2) The Food Label Act (Congressional bill] The Organic Foods Association {OFA}, a trade association representing a variety of colnpanies producing organically grown or raised foods, has long advocated for labels on foods. Unlike the existing labels on foods that list in the order ofuse all ofthe ingredients {e.g., a typical box of cereal will list corn, sugar, vitamins, colorings, etc.], the GPA wants to list the processes in which each ingredient came into being. For example, for corn. the IDFA suggested labels that would differentiate between genetically engineered corn [e.g.. Bt corn) and nonmodified corn. For meats, poultry. and fish, they want to list how those animals, birds, and sh were raised. including what they were fed. Since most corn and many other grains such as soy beans and rice grown in the U.S. are genetically engineered, the large growers and other agribusiness rms such as ADM. Bayer {formerly Monsanto) and lCargill have resisted such labeling. Likewise, large producers ofmeat. poultry, and fish, like Tyson Foods. have also resisted labeling. As a result, no labeling requirements on the process of food production exist as of 2021 in the LLS. Most consumers do not know very much about me foods that they eat (Appendix M). The costs of the poor dietary habits of Americans are very high to both businesses and the public {Appendix H }. Many con surner protection groups and health groups have complained for years about the lack of standards for food companies to list ingredients and production processes. However, very recently, on April 18, 2021. forlner U.S. President Donald Tmmp. had a nearly fatal heart attack and is currently (at the time of the writing of this case) in critical condition at Johns Hopkins Hospital in Baltimore. President Trump was famous for having a poor diet. favoring fast food hamburgers and fries over healthier fare {as he showed in the White House). In 2020. the New Yorker Magazine ran a story about some of President Trump's favorite \"hole in the wall" restaurants in New York serving ziti pizza. hot pastrami sandwiches, and street botdogs. Doctors attribute President Trump's poor health mostly to stress but also for his prodigious appetite for unhealthy foods. President Biden expressed his sympathy to President Trump as well as his wife and forlner first lady, Melania, and wished him a speedy recovery. Since his heart attack, the nation's newspapers as well as the national and international news spent the week reporting on the ex-President's lousy diet and the food industry all with a critical eye. The famous trial lawyer, Steve Suslnan. described by the American Bar Association Journal as \"a voracious animal" who \"scares people to his side,\" held a press conference this week announcing that he would file a class action lawsuit on behalf of burger eaters everywhere. Not to be eclipsed, Houstonbased lawyer Tony Buzbee, known for his flamboyance, said that he would file a class action lawsuit on behalf ofeaters of"Southern Food." including chicken and fish. Senator ICory Booker, Democrat froln New Jersey introduced S. 89, \"The Food Label Act.\" into the Senate in April of2{]2l. The bill was assigned to the Senate Committee on Agriculture. Nutrition. and Forestry, Subcommittee on Nutrition, Agricultural Research, and Specialty Crops {Appendix J2). Many Democrats, including Charles Schumer from New York. and a few Republicans announced support for the bill, including John Hoeven from North Dakota. The Food Label Act would require food producers to provide printed descriptions on their products of production processes. For example, poultry, hogs, and beef ranchers that use hormones to speed up the growth or steroids to make them larger and more muscular, or use of antibiotics in me feed, would have to disclose on the packaging such practices to consumers. Likewise, producers who use natural methods, such as feeding them with BSF that are reared with organic feedstocks, would disclose their practices on the packaging. The United States Department of Agriculture (USDA) would administer the law if passed. The Organic Poultry Association (GPA), the trade group representing the organic chicken producers. had sought such a bill for years. without success. Their efforts were opposed by the National Chicken Association (NCA), the trade association representing all poultry (chicken. turkeys, other birds). hormone and organic. and dominated by the big 'conventional' hormone and steroid producers such as Tyson Foods and IRS. Tyson Foods, the largest chicken producer in the U.S.. has its headquarters in Arkansas. The NCA claims the disclosure bill would add Iuauy costs to the raising of chickens that consumers will ultimately pay. Furthermore. the big chicken producers said it would be virtually impossible to segregate chicken as organic or conventionally produced as it went through the distribution system from ranches to feedlots to processing plants and nally into grocery stores. Large retailers like Walmart, Kroger. Safeway, Publix, and odlers, including their national association the National Grocers Association, have generally supported labeling regulations. They are increasingly sensitive the demands of their customers to know more about the products that sit on their shelves. Some specialized grocery retailers, such as Whole Foods and Sprouts. and specialized divisions ofretailers like H-EB's Central Market in Texas. have already begun vetting their suppliers for their methods used to raise meat, poultry, and sh. A bipartisan group of House members has led a companion bill. At this time, however, it has yet to be referred to committee. House leadership [Nancy Pelosi, MA} supports the bill in principle because it gives consumers the information to make choices about what they purchase in the marketplace and allows the free market to work. However. some Republican leaders question how the USDA would implement such a law and the costs of doing so. {3) Trade With China Executive Branch A one lJSTR The Ofce ofthe United States Trade Representative {USTR} is the de facto \"trade minister" of the U.S. federal government. The USTR's ofce goes out on behalfofthe U.S. to negotiate trade deals with foreign nations. The USTR also has a number of policy tools to recommend (to the President] trade sanctions against foreign nations, for example, if we believe those countries have policies to hinder U.S. goods and services from entering their country or ifwe believe those countries are doing things to have unfair advantage for meir country's goods and services within the U.S. [n such cases, the USTR might recommend to the President that he put tariffs or other barriers (say quotas) against such country's goods and services. Ultimately, however, it is up to the President to decide whether to accept the recommendation (normally he will). to add to it {e.g., make the sanctions sharper). or to weaken or reject it outright [e.g.. to take no actions against the foreign country]

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