COUNTRY-OF-ORIGIN LABELING
NCBA Staff Contact:
Colin Woodall, Executive Director of Legislative Affairs
202-347-0228
cwoodall@beef.org
Summary
As directed by the 2002 Farm Bill, mandatory country-of-origin labeling will be implemented on September 30, 2008. NCBA is supportive of the concept of country-of-origin labeling, but NCBA has urged that a poorly written government-mandated program will be harmful to U.S. producers.
NCBA policy adopted in February 2007 directs NCBA to work with Congress and USDA to ensure that a country-of-origin labeling program ensures maximum benefit and minimal market disruption to the U.S. beef industry.
During development of the 2007 Farm Bill, the House Agriculture Committee worked with NCBA and other food groups to make mandatory COOL a little more workable for producers. This language was included in the Farm Bill passed by the U.S. House of Representatives on July 27, 2007. The Senate version of the Farm Bill passed on December 14, 2007, includes similar language and also adds macadamia nuts, goat meat, and chicken to the list of covered commodities.
NCBA expects this language to remain intact as a conference committee meets to iron out differences in the two bills. While not perfect, these legislative changes represent an improvement to the COOL law currently on the books.
Background
NCBA has worked with producers, the administration and Congress for many years in support of a labeling program that promotes U.S. beef without overburdening producers. Our work on this issue goes back to 1997 when our Board of Directors met during NCBA’s Convention and adopted policy favoring legislation on labeling. In January 2002, at NCBA’s 2002 Convention, the Board adopted policy supporting “voluntary” labeling, but in May 2002, the Farm Bill was passed and signed into law containing a provision calling for “mandatory” labeling.
The current compromise worked out during House deliberations of the 2007 Farm Bill calls for the labeling of beef, pork, lamb and goat meat in four separate ways:
- Product of the United States: This is product that is born, raised and processed within the United States and is from animals that have never crossed the U.S. border (unless being transported from Hawaii or Alaska to the continental U.S.)
- Multiple Countries of Origin: This is product that might have been born in another country but is raised and processed in the United States and will carry a label listing all the countries involved. For example: feeder calves that are imported from Mexico and then fed out and slaughtered within the United States could potentially carry a label that reads “product of the United States from cattle imported from Mexico.”
- Imported for Immediate Slaughter: This label would include all cattle that are imported into the United States for processing only and would, like those with “Multiple Countries of Origin,” carry a label listing all the involved countries. For example: fed cattle imported from Canada and processed in the United States could potentially carry a label that reads “product of Canada and the United States.”
- Foreign Country of Origin: This label is for all fresh beef that is imported into the United States and will only list the product’s country of origin.
Ground beef has also created a dilemma within the labeling debate. How do you label a product that contains components from multiple countries? The language contained within the Farm Bill would allow a label for ground beef, pork, lamb, or goat to simply list all the countries of origin that may be in that product.
Another concern for cattle producers was how to actually verify the origin of their cattle. Under the new legislative language, producers are instructed to use only documents that would be used in the “normal conduct of business” to prove origin. These documents include animal health papers, import or customs documents, and tax documents.
Because it is going to take time to implement COOL, the new language also includes a grandfather clause for all cattle within the United States prior to January 1, 2008. This should exempt all calves entering feedlots this fall and next spring from labeling requirements. However, starting next spring, all new calves will need a paper trail verifying their origins.
NCBA Submits Comments to USDA on MCOOL Rulemaking
NCBA submitted comments on August 20, 2007, to USDA’s Agricultural Marketing Service (AMS) on the mandatory country-of-origin labeling (COOL) law due to be implemented September 30, 2008. In its comments, NCBA:
- reinforces producers’ belief that, as a marketing program, COOL should be producer-driven and not mandated by the government;
- takes issue with the misconception that COOL can somehow offer the consumer extra assurances of food safety;
- points out the disparity of exempting food service, processed foods and poultry from complying with mandatory COOL; and
- suggests that COOL labels be more visually appealing and recognizable to the consumer as part of the effort to “brand” our product.
NCBA also reiterated its support of the compromise language developed by the House Agriculture Committee as part of the 2007 Farm Bill. While not ideal the compromise language is an improvement over the current law.
In NCBA’s comments, NCBA President and North Carolina Cattleman John Queen told USDA, “NCBA looks forward to working with USDA and Congress to ensure that the mandatory country of origin labeling program that is put into place on September 30, 2008 allows for the differentiation of U.S. beef, gives the consumer a choice, and provides a return to American’s cattle producers. If this program does not satisfy these three criteria, we will deem mandatory COOL a failure and will work to change the law.”
Country-of-Origin Labeling Timeline
· 1997 NCBA Convention—Policy adopted “favoring” legislation on labeling
· 1997 NCBA Summer Meeting—Task Force appointed to discuss mechanics of a labeling law
· Fall 1997—Task force developed recommendations
· 1998 NCBA Convention—Task force report adopted as NCBA policy
· Spring 1998—Task force report is basis for Johnson-Burns labeling amendment that passes the Senate
· Summer 1998—Johnson-Burns amendment struck from bill in Conference on 1999 Agriculture Appropriations Bill. Report language requires USDA study
· April 1999—NCBA testifies on task force report at House Agriculture Committee. Committee urges work on a voluntary labeling approach
· Summer 1999—Report language in 2000 Agriculture Appropriations bill instructing USDA to work with groups to implement labeling program
· January 2000—USDA and General Accounting Office release reports citing limited benefits and high costs to mandatory labeling.
· Spring and Summer 2000—NCBA negotiated with American Farm Bureau Federation, National Farmers Union, National Meat Association, American Meat Institute, and Food Marketing Institute on a voluntary labeling program.
· September 2000—Labeling petition submitted to USDA
· January 2001—USDA publishes receipt of petition in Federal Register
· July 2001—USDA staff instructed to begin implementation of petition
· July 2001—House Agriculture committee rejects mandatory labeling after lengthy debate during markup of Committee Farm Bill.
· 2001 Summer Meeting—NCBA discusses mandatory labeling and the action of the House Agriculture Committee. Meeting of state cattle associations called to discuss labeling policy.
· September 2001—Meeting of state affiliates held in Denver. Recommend interim policy to favor “voluntary” labeling.
· October 2001—NCBA Executive Committee approves voluntary approach.
· November 2001—Senate Agriculture Committee passes farm bill containing mandatory country of origin labeling provision.
· 2002 NCBA Convention—Policy adopted ratifying Executive Committee approval of “voluntary” labeling.
· Spring 2002—House and Senate negotiate 2002 Farm Bill Conference Report.
· May 2002—2002 Farm Bill containing Mandatory Country of Origin Labeling is signed into law.
· October 2002—USDA publishes “Voluntary Guidelines” as required by law
· 2003 NCBA Convention—NCBA asks for Congressional and USDA hearings on law.
· April 2003—Senate Agriculture Committee field hearing in Missouri.
· Spring and Summer 2003—USDA holds twelve “Listening Sessions”
· June 2003—House Agriculture Committee holds labeling hearing.
· June 2003—Provision added to 2004 House Agriculture Appropriations bill to limiting funding for labeling implementation.
· July 2003—Senate Agriculture Appropriations bill passes Subcommittee and full Committee with labeling funding intact
· 2003 NCBA Summer Meeting—Adopt policy to support changes in mandatory law to make the law consistent with NCBA policy of a voluntary market driven program for Country of Origin Labeling
· January 23, 2004—Congress passes the Consolidated Appropriations Bill, delaying implementation of the mandatory law from September 30, 2004 to September 30, 2006.
· June 15, 2004—Chairman Goodlatte and Ranking Member Stenholm introduce H.R. 4576 to amend the labeling law making it a voluntary program.
· July 22, 2004—The House Agriculture Committee passes H.R. 4576 by a vote of 32 to 16.
· September 14, 2004—The Senate Appropriations Committee defeats an amendment to require implementation of mandatory labeling in 2005.
· May 4, 2005 — In the 109th Congress, House Agriculture Committee Chairman Bob Goodlatte (R-VA), Reps. Marion Berry (D-AR) and Roy Blunt (R-MO) introduced the Meat Promotion Act (H.R. 2068) which provides a voluntary country-of-origin labeling program for meat (beef, pork and lamb.)
· June 10, 2005 — The House passed its Ag Approps bill which contains a delay in funding for mandatory country-of-origin labeling until Sept. 30, 2007.
· June 23, 2005 — Senator Rick Santorum (R-PA) introduced the Food Promotion Act which covers meat and produce.
· June 29, 2005 — Senators John Cornyn (R-Texas) and Blanche Lincoln (D-Ark), along with 13 co-sponsors, introduced the Meat Promotion Act (S. 1333) which covers beef, pork and lamb.
· November 3, 2005 — The Ag appropriations bill achieves final passage and contains a delay in funding for implementation for the current mandatory country-of-origin labeling program for 2 years (until 2008). NCBA believes this will give industry and government time to work together on a solution, possibly within the 2007 Farm Bill.
· January 26, 2007 — Senator Craig Thomas (R-Wyo.) introduced legislation in the 110th Congress that would expedite the implementation of country-of-origin labeling (COOL) for beef and other products to begin on September 30, 2007. Thomas said producers and consumers of seafood are already enjoying the benefits of labeling and further delays for beef and other products are not warranted. S. 404, the “Country of Origin Labeling Act of 2007” has 8 co-sponsors including Senators Max Baucus (D-Mont.), John Thune (R-S.D.), Chuck Grassley (R-Iowa), Jon Tester (D-Mont.), Jeff Bingaman (D-N.M.), Byron Dorgan (D-N.D.), Mike Enzi (R-Wyo.), and Kent Conrad (D-N.D.).
· February 2007 — NCBA members passed policy directing NCBA to work with Congress and USDA to ensure that a country-of-origin labeling program ensures maximum benefit and minimal market disruption to the U.S. beef industry.
· July 27, 2007 — The U.S. House of representatives passes its 2007 Farm Bill which contains legislative language amending the mandatory COOL law to ease the burden on food producers.
· August 20, 2007 — NCBA submits comments to USDA on the COOL rulemaking supporting the compromise language worked out in the House Farm Bill.
· December 14, 2007 — The U.S. Senate passes its 2007 Farm Bill which contains legislative language amending the mandatory COOL law to ease the burden on food producers while also adding macadamia nuts, goat meat, and chicken to the list of covered commodities.
· Late January 2008 — A congressional conference committee is expected to begin deliberating on a final Farm Bill.