Mandatory Labeling Law Still Costly

A bipartisan and widely supported bill which would have created an alternative approach to country of origin labeling failed to get attached to the 2005 omnibus spending bill as Congress wrapped up its debate on Nov. 20. 

 The Food Promotion Act of 2004 passed out of the House Agriculture Committee in July with bipartisan support and the backing of 347 food and agriculture groups, including NCBA.  “The bill introduced by House Ag Committee Chairman Bob Goodlatte (R-Va.) and Ranking Minority Member Charles Stenholm (D-Texas) represents an effort to move country of origin labeling forward in a reasonable and cost-effective manner,” says Bryan Dierlam, acting executive director of legislative affairs at NCBA.

 “We are very disappointed that in the closing days of this session, Congress was unable to include in its omnibus package the bill which would have put in place a producer-driven and consumer-friendly labeling program,” says Dierlam.  “It is unfortunate that some members of Congress continue to support a law that will cost America’s family ranchers billions of dollars in compliance costs that will eventually be passed back to consumers.” 

The General Accounting Office, the independent congressional watchdog agency, has testified that there are going to be significant costs associated with compliance and enforcement of the current country of origin labeling law.  In addition, USDA has stated that there are no quantifiable benefits associated with the current labeling law.  The proposition of zero return attests to the inefficiencies associated with a government-led program.  

“Despite the claims that this program will provide consumers with a choice, the current law actually exempts the vast majority of imported meats,” explains Dierlam, “which means the majority of the meat imported to the U.S. will never see a label, thus denying the consumer the very choice this law set out to provide.” 

 NCBA has long understood the value of country of origin labeling as a potential marketing tool for cattle producers to showcase the high quality of American beef.  NCBA members have policy supporting a labeling program which is market-driven and producer-led.  Cattlemen remain dedicated to working to develop a beneficial country of origin labeling program that adds true value and avoids excessive cost.