NCBA Staff Contact:
Colin Woodall, Executive Director of Legislative Affairs
202-347-0228
cwoodall@beef.org
Update: A standardized industry-wide affidavit is now available for use: Country of Origin Affidavit
Summary
On August 1, 2008, USDA published an interim final rule in the Federal Register to allow industry comment prior to issuing a final rule, while simultaneously meeting the September 30, 2008 COOL implementation deadline.
The interim final rule contains definitions, requirements for consumer notification and product marking, and the responsibilities of both retailers and suppliers for covered commodities.
The rule calls for the labeling of beef, pork, lamb and goat meat in four separate ways:
1) Product of the U.S. – for cattle exclusively born, raised, and processed in the U.S.
2) Multiple Countries of Origin – Sample label would read: Product of the U.S. and/or Canada, Mexico. A packer or retail can choose to label product from cattle that were not imported for immediate slaughter (i.e. cattle that were born, raised and/or fed in the United States) with a label that stated Product of the U.S. and/or Canada, Mexico, or another country. NCBA fought hard for this additional provision so that our members who import live animals and add additional value through the raising of that animal do not lose their profit margin overnight.
3) Product of Canada or Mexico and the U.S. - This is for live cattle imported for slaughter that have been in the United States for two weeks or less. Notice on this label the U.S. is listed after the other countries of origin.
4) Imported Product - This includes imported muscle cuts/boxed beef imported from Australia, New Zealand and Uruguay. There is a 60-day lag on labeling of ground beef, so that if you stop using ground beef from NZ, you must stop including that country on the label 60 days after NZ beef is no longer in your batches. Similarly, once you restart using NZ beef, you have 60 days to begin including that on your label.
Ground beef will be labeled with all countries of origin that may reasonably be contained within that batch. Once beef from a country is in a processor’s inventory, the processor has 60 days to update their labels to include that country on the labels. If a processor discontinues the use of beef from a country, the processor has 60 days to remove that country from their labels.
NCBA has worked with our industry counterparts to develop a standardized affidavit that can be used throughout the cattle marketing chain. Read more about the industry-wide COOL affidavit here. Producers can fill in information specific to their cattle and assert the origin of any animal being sold. Livestock marketers further along the ownership chain can use individual affidavits to create a single, combined affidavit for a group of animals. The affidavit is available here: Country of Origin Affidavit
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 July 16, 2008. Cattle in the United States on or before this date will automatically be considered of U.S. origin. NCBA was successful in arguing that cattle marketed between July 16 and the September 30 implementation deadline should be marketed the same as other cattle. That is to say that current owners can be considered to have first-hand knowledge of those cattle and animals will be allowed to move from these premises on that same standard affidavit.
Background
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.
While not perfect, these legislative changes represent an improvement to the COOL law currently on the books.
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.
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.