Teaching Case Study — Overcoming National Regulations Limiting International Trade: Creekstone Farms and BSE
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The emergence of Bovine spongiform encephalopathy (BSE) as a major food safety issue sets the situation for a firm level
opportunity. The Japanese government banned imports of cattle and beef from the U.S. when it established the first
cases of BSE there and refused to lift barriers because the Japanese viewed U.S. efforts to eliminate the BSE threat as
inadequate. Creekstone Farms of Kentucky saw an opportunity in this situation as the Japanese and Korean governments
agreed to imports of its beef if guaranteed BSE-free. The USDA has to decide whether to allow Creekstone to do this
testing so that it can export its beef. The decision is difficult because many stakeholders have opposing views.