NCBA, Industry Groups to Develop Alternative Labeling Program

After considering possible damages the mandatory country-of-origin labeling law could have on producers and small businesses, Congress decided late last week to delay implementation for two years until October 2006.  The current mandatory country-of-origin labeling law, included in the 2002 Farm Bill, is being discussed during formulation of the FY2004 Omnibus Appropriations Bill.

“Many producers were concerned that these mandatory regulations could have a negative impact on their bottom line,” says National Cattlemen’s Beef Association (NCBA) President and Idaho cattle producer Eric Davis.  “This action puts more control of the industry in the hands of producers, and is one of the key steps that our NCBA Board voted overwhelmingly to authorize.”

The delay frees U.S. cattlemen from imminent implementation of the controversial mandatory law and sets the stage for the next steps in a national labeling program. Producer-members of NCBA will use this time to develop a voluntary program that promotes U.S. beef and enhances profitability for American cattle producers. 

“Under the mandatory law, less than 5 percent of the beef sold would ever carry something other than a U.S. label,” says Davis, pointing out that the majority of beef imported is sold through foodservice which is exempt from the law. “It is ridiculous that this law would place such a burden on U.S. producers while leaving the vast majority of imported beef unlabeled.  Our members have called for a voluntary, producer-driven program that maximizes our producer benefits by including all marketing channels and forms of beef - retail, foodservice, processed, fresh and frozen.”

NCBA is reaching out to key retailers and foodservice groups to participate in an alternative labeling program that will be industry-driven and inclusive. In addition, a voluntary program would better protect cattle producers’ confidentiality and give them more leverage in their dealings with packers and retailers.

“This is a clear indication that Congress is willing to give us time to work this out,” says Davis. “U.S. cattle producers must take the lead on this effort and work with retailers, foodservice groups, and others. With strong participation across all industry sectors, we can create a profitable labeling program that benefits all involved.” 

The conference report has been filed and final passage is expected when Congress returns.  The House is expected to return in early December.  The Senate schedule is still not determined.