Analysis: For Merck, bringing cattle feed Zilmax back won't be easy

(Reuters) - U.S. pharmaceutical giant Merck & Co (MRK) faces significant challenges bringing its controversial feed additive Zilmax back to market in the United States and Canada, even after a vote of confidence from South Korea on Thursday. South Korea plans to begin accepting meat from cattle raised with the muscle-growing supplement early next year, a senior official in the country's food ministry said, opening the door to beef imports after a government risk assessment found the additive could be permitted at certain levels. To resurrect the once popular drug in the United States, Merck will need to shake this summer's controversy over animal welfare problems - and convince ranchers, feedlot customers and meatpackers that Zilmax was not to blame for some cattle that arrived at slaughter plants having difficulty walking and apparently in pain. It could be a tough sell: On Wednesday, agricultural giant Cargill Inc (CARG.UL) told Reuters it would not allow Zilmax-fed beef to enter its supply chain until questions over cattle health issues have been resolved and "until Asia and other trading partners accept it in their markets.



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