Well, it’s a point with some considerable validity. Your test may have a very high sensitivity and specificity, but if you test millions upon millions of uninfected carcasses, the probability of a false positive rockets, and the informational value of a given positive result decreases accordingly. Have a look at this article for an explanation of why even a test with apparently magnificent sensitivity and specificity can end up giving you almost no valuable information when applied to a vast, predominantly uninfected population.
This page seems to indicate that a typical specificity for the sort of test in question is about 1 in 30,000, or 99.997%. Sounds great, right? But according to this page the annual US cattle slaughter is of the order of 34 million animals, of whom the absolutely overwhelming majority are uninfected. If you were to test all of those with a specifity of 1 in 30,000, you’d expect around 1100 false positives per year.
By contrast, your story lists three confirmed cases of BSE in the USA in the last 5 years (well, 3 cases ever, but let’s count from when the first one was spotted), so that’s a rate of just over half a case a year. It’s impossible to assess how many cases went undetected, if any, but even if we’re missing half the infected cattle, that means that in a full testing scheme, the probability of a carcass being infected given a positive result would drop to a staggeringly low 0.09%.
Now consider the USDA’s position. It has to minimise risk to the population, but it also has to maintain a degree of sanity about proceedings. Managing the perception of these 1100 new “cases” of BSE would be a nightmare; all of a sudden the public is convinced there’s an epidemic, herds are slaughtered, companies go bust and for little or no concrete benefit in safety. In a situation where every carcass slaughtered is tested, the only concrete result is that the meat is more expensive, and we still don’t really know which cattle are infected, because for every one genuine case we find, we find 1100 false ones.
I don’t want to get into the rights and wrongs of the USDA going to court to withhold a test from a company, but I do think that it’s a perfectly valid view to take that this company is guilty of making a cheap marketing gesture that won’t noticeably increase protection for the consumer, and stands a good chance of significantly damaging the testing process that exists already. The alternative certainly exists that the USDA is simply in the meat companies’ pockets, but don’t just sniff at their statistical argument, it’s got a lot going for it. What use is a testing program where a positive result has less than a one in 1000 chance of being correct? The statistics of mass testing are far from trivial, and blithely assuming that testing everything must be better is seductive but fallacious reasoning.