Cattlemen Wary of Mandatory Country-of-Origin Labeling Costs, Requirements

America’s cattlemen are looking to an alternative approach to remedy the mandatory country-of-origin labeling law, which would force producers to bear the brunt of a program that could cost up to $3.9 billion. A market-driven, producer-led country-of-origin labeling program will allow producers to participate at their choosing without incurring unnecessary costs. 

The much-anticipated proposed mandatory country-of-origin labeling rule and cost benefit analysis was released Oct. 27 by the U.S. Department of Agriculture (USDA). The public has 60 days following publication in the Federal Register to comment on the proposal, and the National Cattlemen’s Beef Association (NCBA) is hoping producers, industry affiliates and members of Congress will review the rule for themselves and provide comments.

“Most producers will be disappointed in the proposed mandatory rule, as it falls short of meeting the program’s objective of enhancing and sustaining the profitability for America’s cow-calf producers,” says NCBA President and Idaho producer Eric Davis. “The cost-benefit analysis shows that it will be all but impossible for producers to improve their bottom line under this mandatory law.”  

“While most cattlemen are operating at profitable levels and demand for beef continues to rise, now is not the time to saddle producers with billions of dollars in compliance costs,” says NCBA CEO Terry Stokes. “There is no need to give up the profitable ground we have strived so hard to attain, when there are other alternatives.” 

NCBA has long supported a market-driven, producer-led country-of-origin labeling program.  “Cattlemen created country-of-origin labeling. It is seen as a solution to improved profitability,” says Stokes. “Cattlemen are hoping Congress will find a way to re-work the law so it helps – not hinders – the profitability of cow-calf producers.”

Country-of-origin labeling has long been popular among U.S. cattle producers looking for a way to help promote and market U.S. beef – the safest and highest quality beef in the world. After working for years to develop a program, NCBA says everyone learned that a mandatory approach would come at a cost. 

“The 200+ pages of rules and cost benefit analysis didn’t tell us anything we didn’t already know from the years of meetings, Congressional hearings, GAO reports, USDA reports, and listening sessions,” says NCBA Director of Legislative Affairs Bryan Dierlam.  “What we have learned from all these discussions is that there is a better way than this costly law to help producers market and promote American beef.”