The timing is unbelievably bad. Japan agreed just one month ago to re-admit beef from US cattle less than 21 months old.
But trade was suspended last week when Japan found banned material in a shipment of veal from a New York company.
"It is our understanding that a small shipment of veal from calves that were under 6 months of age was shipped," said American Meat Institute chief executive J. Patrick Boyle.
"The product was inspected and passed by USDA as safe, but contained bones prohibited by the Japanese. This product is consumed with confidence here in the US.
"It is important to note that BSE has never been detected in an animal this young."
Japan was the largest importer of US beef prior to 2003, importing $1.4 billion worth of beef a year. But then in May 2003 BSE, or mad cow disease, was detected in an Alberta heifer. A case of BSE was later discovered in the US in Washington State in December 2003.
Japan banned imports of US beef from Canada in May 2003 and from the US seven months later. Following the discovery of BSE, US beef exports fell by 64 per cent, with Japan representing half that market.
A study released last April by the Kansas Agriculture Department estimates the industry lost up to $4.7 billion last year because of the mad cow case in Washington.
Japan recently imposed a series of rules that US beef exporters will have to follow in order for trade to be re-established. The government's food safety agencies said that they would only allow imports from cattle aged up to 20 months.
In addition, exporters would have to remove any SRMs, such as brains and spinal cords. This was the prohibited material found last week.
The US beef industry, while kicking itself at giving Japan such an easy excuse to suspend trade, is confident that its product is as a safe as ever, and believes that the incident shows that global rules of trade must be established.
"We deeply regret the incident that has prompted Japan to suspend all US beef imports," said Boyle.
"Despite this shipment, sent in error, the facts are indisputable: US beef and veal remain among the safest in the world. Experts say that the US' proactive, preventive BSE firewalls have made the level of BSE in the US so low it can scarcely be quantified."
Boyle went on to say that the USDA plans to revalidate all plant export programs in order to show Japan.
"This incident points to the need for uniform, global export standards to prevent the sort of trade disruptions that this error has caused," he added.
"We are confident in US beef safety and are committed to providing any assurances needed to restore exports."