Milk flunks quality standards

 

The United States Grade A milk standard allows for milk quality that would not be saleable from Canadian farms, said senior economist Al Mussell of the Canadian Agri-food Policy Institute website.

The U.S. also allows for a significant volume of milk used in processing that does not even meet US Grade A standard, he said.

The U.S. spending cuts to laboratory proficiency testing further undermine the integrity of the US Grade A milk standard, even as it presents a technical barrier to trade, he said.

His policy note describes both important gaps in U.S. milk quality and safety regulation, and the insistence that exporters of dairy products to the U.S. adopt its standards, rather than establish equivalence standards- thereby creating a technical barrier to trade. 

“Canada has been prepared to accept dairy imports from the U.S. as like product.  But the situation has changed- with the suspension of its proficiency testing of milk testing labs and the recent antagonistic approach that the U.S. has taken with Canada”, Mussell said.

“A reasonable and measured approach for Canada could be to require labeling of its dairy imports from the U.S. to indicate that they are not made from milk that does not satisfy U.S. Grade A, a renewal of U.S. funding for milk lab proficiency testing coupled with a serious review of its milk quality standards, and a review of the PMO as an instrument of disguised protectionism by the U.S.”.

Mussell said Canada has a national limit of a somatic cell count of no more than 400,000 per millilitre, but the U.S. allows up to 750,000.

Mussell notes that the U.S. Food and Drug Administration has been in negotiations with Canada, the European Union and New Zealand to accept their quality standards as equivalent or better than U.S. domestic milk, but so far no agreement has been reached.

He said the U.S. stance is a technical trade barrier.

Mussell’s post on the institute’s website comes as Canadian and U.S. trade negotiators are in tense deadline meetings leading up to an Aug. 19 deadline.

Tyson closing and selling beef plant

s

 

Because there are fewer cattle to slaughter, Tyson plans to close two plants and sell a third.

The company said it will shut down its Joslin, Ill., beef plant and Eagle Mountain, Utah, case-ready facility. Tyson also is pursuing the sale of its Pasco, Wash., beef facility.

Tyson will consolidate its beef business around three centrally located slaughter facilities in Dakota City, Neb., Holcomb, Kan., and Amarillo, Texas. Capacity from the closing facilities will be shifted to other Tyson locations with room for additional production.

Fertilizer prices to remain high

 

CoBank says fertilizer prices are likely to remain high for another two years.

Although prices have declined from the historic highs seen at the start of the war against Iran, elevated fertilizer expenses remain a major headwind for farmers, it said in a new report led by Jacqui Fatka, CoBank’s farm supply and biofuels economist.

Instability in the Middle East, constrained feedstock supplies and tightening phosphate availability will keep fertilizer costs elevated for ag retailers into 2028, she said.

“Ultimately, market recovery will depend on stabilization in the Middle East, lower sulfur prices and shifts in global demand patterns,” she wrote. 

The Middle East supplies more than 60 million tons of fertilizers and raw materials annually, with 45 million tons shipped through the Strait of Hormuz that Iran controls.

Half of globally traded sulfur and more than 30 per cent of global urea exports originate from the region, making these commodities particularly vulnerable to supply disruptions. 

Conflict in the region has resulted in fertilizer plant shutdowns and damaged facilities that will require significant time and resources to repair, she wrote.

An estimated 31 ammonia plants in the Middle East have been directly impacted by the war or shut down completely. Across India, Pakistan and Bangladesh, operations at 49 plants have been curtailed or halted due to limited feedstock availability. Meanwhile, at least 20 plants in Russia have been damaged by Ukrainian drone attacks, further exacerbating global supply challenges.

The disruptions have reshaped global trade flows and increased fertilizer prices for North America’s agricultural retailers, particularly for Diammonium Phosphate and Monoammonium Phosphate. 

While most domestic use is supplied by U.S. production, 17 per cent of those two those phosphate imports originate from the Persian Gulf — now one of the most unstable supply regions.

Phosphate markets are expected to remain especially tight. Even before the war, global phosphate supplies were constrained, and rising sulfur and ammonia costs have further limited production. 

Ammonia and sulfur are the two biggest variable cost inputs for phosphate production, and three of the world’s 10 largest ammonia exporters are located behind the Strait of Hormuz. 

China, the largest producer and exporter of phosphate fertilizer, has banned phosphate exports through August and high sulfur prices may lead to an extension of the ban.

Farmers have already responded by conducting more soil testing, adopting variable‑rate application technology and precision nutrient management to maintain yields. 

Under-fertilization can be more costly than higher fertilizer prices, which is why many farmers have not reduced nitrogen applications but have lowered phosphate and potassium levels by as much as 10 to 15 per cent in recent years.

“Lower or no fertilizer use creates a two‑ to three‑year gap before yield begins to suffer,” said Fatka. “The question now becomes how much longer the mining of the soils can occur without sacrificing yield.”

If fertilizer prices remain high through fall as expected, more farmers may push applications into spring, creating logistical challenges for retailers who must manage tight planting windows and uncertain demand. Lower global application rates could modestly reduce yields and support commodity prices, easing some inventory concerns for retailers, she said.

Whole Foods recalls some imports

 

Whole Food is recalling guacamoles, pico de gallos, salsas, and prepared foods because they may be contaminated with food-;poisoning bacteria.

The products were imported, but the Canadian Food Inspection Agency did not say where from.

Manure can spread antibiotic resistance

 

Manure can spread antibiotic resistance, but a team from Oklahoma State University thinks it has a solution.

The concern is that antibiotic resistance can spread to other bacteria and pose a threat to animal and human health.

The solution is tiny bubbles of ozone thrust into manure.

Ozone bubbles have long been used to treat sewage, but not as small as the ones now being researched and tested.

Mark Krzmarzick from the School of Civil and Environmental Engineering and head of the research team said the nanobubbles destroy genetic material.

Even if the bacteria are killed, pieces remain and can spread antibiotic resistance he said.

The research team aims to find out whether nanobubbles of ozone can break that genetic material apart so antibiotic resistance can’t spread.

Farm workforce declines

 

There has been a decline of 52,000 on-farm workers since 2020, reported Statistics Canada.

The total now is 225,000.

Jennifer Wright, executive director of the Canadian Agricultural Human Resource Council said the decline comes from an aging workforce, retirements, lack of young people taking agriculture jobs and competition from employers in other businesses.

She said the decline doesn’t mean there are fewer jobs, but that farmers are having more difficulty recruiting workers.

She said the numbers may also be missing temporary foreign workers, but Statistics Canada’s spokesman defended its survey numbers as consistently reliable and accurate.

The decline is not new. In 1993 the total was 400,000, but the decline has accelerated over the last few years.

Maple Leaf sales increase, profit slumps

Maple Leaf Foods Inc.reported a second-quarter profit of $40.8-million, down from $57.8-million a year ago, as its sales rose 1.6 per cent.

Sales totalled $1.02-billion, up from $1 billion.

Maple Leaf says poultry sales increased by 7.1 per cent, driven by higher volumes, improved channel mix and pricing.

Rainfall emergency in Niagara Region

 

Successive storms have flooded large areas of the Niagara Region leading to emergency declarations and significant farm losses.

Vineyards, orchards and floral farms have been flooded and waters have been slow to recede.

Farm organizations are thanking municipal and provincial governments for assistance, but have a few specific requests.

One is for regulatory approvals for aerial application of fungicides in fields too flooded or wet to support spraying equipment.

The federal government recently approved the use of drones to apply pesticides that have been approved for aerial application.

Another ask is for the extension of foreign workers stay in Canada so they can help with the recovery.

While Niagara Region has too much rain, British Columbia’s grape and wine industry is far too dry and under threat from wildfires.

Wine makers fear that wildfire smoke will taint their products.

Agri Stats settles pork lawsuit

Agri Stats has reached settlements with the remaining pork-industry companies that filed class-action lawsuit alleging price fixing.

They claimed Agri Stats gathered and share information with pork packers that enabled them to adjust production and pricing.

 

Agri Stats has denied wrongdoing but said it settled to contain legal costs.

Numerous pork processors have previously settled claims brought by various purchaser groups in the litigation, leaving Agri Stats as one of the final defendants facing continuing claims.

The private litigation is separate from the Justice Department’s antitrust case against Agri Stats. The company reached a settlement with the DOJ and six states in May requiring changes to how it collects and distributes competitively sensitive information about the meat industry.

No dollar amounts involved in the settlement have been reported.

                           

 

CFIA suspends, cancels licences

 

The Canadian Food Inspection Agency has suspended licences held by Groupe 3CNT Inc. of Chateauguay, Que. and by a business in St. John’s, Newfoundland.

It has cancelled two licences held by companies in Contrecoeur, Que. They are licences 7V7LVWL and 8N6CKY86.

                           

The non-helpful people at CFIA do not identify the company names by which they do business, nor do they allow the public to search its licence registry for the names.

PED outbreak in Huron County

 

There has been an outbreak of Porcine Epidemic Diarrhea in a finishing hog operation in Huron Count, reports Swine Health Ontario.

It is the first outbreak since May 21.

Gay Lea investing $200 million

Gay Lea Foods Co-operative Ltd. is investing $200 million to expand and modernize cottage cheese production at its facility at Clayson Road in Toronto.

There has been a global surge in demand for protein since people began using GLP drugs to address diabetes and lose weight.

Extra protein is required when using the drugs.

Gay Lea said the expansion will introduce advanced processing technology and modern manufacturing capabilities designed to increase production capacity, strengthen productivity and enhance operational flexibility. 

The expansion, to be complete in 2028, will create up to 75 new positions.

The investment is part of planned investments of $450 million over several years in Gay Lea’s facilities.

                           

Canada Packers reports loss

Canada Packers lost $28.4 milllon in its second fiscal quarter.

A year ago it made a profit of $23.4 million.

Sales declined by 8.8 per cent because pork prices came down. 

The total was $421.7 million this year compared with $473.2 million last year.

There is more pork in the North American market this year – two per cent more market hogs in the United States despite a one per cent decline in the sow herd, and aggressive expansion in Mexico.

The financial report includes a $48.3 million non-cash decrease in fair value of biological assets. 

                            

Saputo sales down, profits up

 

Saputo’s sales declined by 1.5 per cent, but its profits increased by 10.4 per cent.

The surprising results come from increased demand and prices for whey.

Saputo’s global operations are tilted towards cheese production.

False blueberry advertising

A week ago I brought this false advertising to the attention of the Canadian Food Inspection Agency in Ottawa.

It was referred to the Hamilton office and I was assured they would investigate.

But a week later I had heard nothing. So I reminded the CFIA in Ottawa that I am a reporter, and said it was shaping

 up to be a good storyl

Then I heard from the Hamilton office which asked for most of the same information, including picture, that I had originally sent.

When do you guess I might hear the results of their "investigation"?

They couldn't even be bothered to walk into one of the many Loblaws-owned stores and see for themselves.

If you harvest blueberries for a living, don't count on prompt help from your Canadian Food Inspection 

Agency.

Valo gets egg quota for Sanofi’s vaccine plant

 

Valo has received national and Ontario egg supply management approval for 6,716,666 dozens of eggs, the equivalent of 492,000 laying hens.

Valo will be producing them for Sanofi’s new vaccine production plant at Mississauga.

The Farm Products Council of Canada recently granted its approval for the special annual production. It takes effect Jan. 1.

Valo and/or Sanofi will require annual approvals to continue egg production.

Many farmers lack education

Many Canadian farmers lack education and communication around business risk management programs, according to a study by Farm Management Canada.

That hinders their ability to make use of the programs, it said, and it recommends a national strategy be developed to address these challenges.

“Many producers are unaware, misinformed about or skeptical of the risk management programs and tools available, and underutilize proactive risk management practices,” the report said.

The federal, provincial and territorial ministers of agriculture put business risk management programs at top priority when they recently met at Halifax.

Veggie board chooses new general manager

 

Mark MacPhail is the new general manager for the Ontario Processing Vegetable Growers.

He takes over from Keith Robbins.

The board has about 350 members who grow nine main processing vegetable crops that are canned, frozen or pickled.

Province’s Tories oppose ALTO

Eleven provincial Tories have issued a statement calling for meaningful consultation on ALTO, the federal government’s proposed high-speed rail line linking Toronto, Montreal and Ottawa.

The 11 MPPs who made the statement include Laurie Scott, Steve Clark, Dave Smith, Tyler Allsopp, Ric Bresee, John Jordan, George Darouze, Stéphane Sarrazin and Billy Denault plus two cabinet members: Minister of Colleges and Universities Nolan Quinn and Labour Minister David Piccini.

“If Alto is to proceed, local voices impacted by this project deserve to see their feedback reflected in the project’s planning, route selection and delivery. 

"The federal government must ensure that any potential future rail project minimizes impacts on farmland and is supported by the people affected.” the statement said.

Dairy lobbying overwhelms trade talks

Canada’s dairy industry accounted for 90 per cent of the responses when the federal government invited public comment on trade talks with the United States and Mexico.

Matt Malone is a scholar at the Balsillie School of International Affairs and the author of Open Governments, Secret Canada: Hiding Information Other Countries Share, used Access to Information to learn that 4,572 of the total of 5,143 responses from stakeholders were dairy special interest groups or dairy farmers engaged in a letter-writing campaign.

All the public got was an opaque summary of the consultations, leaving it unclear where any specific input came from, Malone said.

“As with so much of the Carney government’s approach to trade with the United States, the attitude was tight-lipped and need-to-know,” he said.

It was similar with comments on government plans to regulate Artificial Intelligence. All the public got was an AI-generated summary of comments and no identification of who was lobbying and what for.

Cargill chief forecasts complex future

 

Cargill’s Brian Sikes, the board chairman and chief executive officer, foresees a complex future.

He wrote a letter in the annual report saying slowing population growth, aging consumers, shifting dietary preferences, geopolitical tensions, artificial intelligence (AI) and climate disruption are reshaping the global food system, requiring companies to focus on “smarter movement, stronger connections and deeper trust” rather than simply increasing production.

Cargill said it has spent the past two years restructuring its operations, consolidating five enterprises into three and reducing its business groups from 23 to 14 while investing in digital technologies, AI capabilities and acquisitions, including Mig-Plus and Teys, to improve efficiency and better serve customers.

As an example of its use of technologies, he said an AI-powered hypothesis engine is helping researchers reduce work that once took months to just hours. Cargill has been using AI in supply chain management, product development, grain forecasting and research.

Turkey price-fixing winding up

 

Class-action lawsuits alleging price-fixing by turkey processing companies in the United States are winding up with federal court approval of a settlement for four companies.

 House of Raeford and Prestage Farms will be paying $18.7 million US to their customers; Purdue and Foster Farmers reached settlements earlier.

In total, $59 million has been paid in class-action lawsuits filed by various groups of customers of Butterball, Cargill, Cooper Farms, Farbest Foods, Foster Farms, Hormel, Jennie-O Turkey Store, House of Raeford, Perdue Farms, Prestage Farms and Tyson Foods.

Corn, soy prices boost farmers’ mood

 

Higher prices for corn and soybeans brought a turn-around in farmers’ moods in the United States, reported Purdue University.

The improvement in July ended three straight months of declines in Ag Economy Monitor it publishes every month based on a survey of about 700 farmers.

Yet only 13 per cent said their financial situation is better than a year ago. About a third of those surveyed said they expect to end the year better than last year.

Only about a half of farmers think the U.S. is headed in the right direction, a sharp decline from the 70 per cent average for the last six months.

Judge certifies farmers beef price-fixing lawsuit

 

A federal judge has certified a nation-wide class-action lawsuit for farmers who claim beef packers conspired to lower prices for their csttle.

The judge dismissed U.S. Premium Beef shareholders from the lawsuit,  but certified it against Tyson Foods, JBS, Cargill and National Beef for cattle they bought between June 1, 2015, and Feb. 29, 2020.

The judge refused certification for traders and suppliers of feeder cattle.

He rejected a motion from the packers to have expert witness Dr. Basil Lamb dismissed from testifying for the farmers.

Ten fire departments fight barn fire

 

Ten fire departments from Huron and Bruce counties fought a barn fire in South Bruce Friday.

Nobody was injured during the response to the barn on Concession Road 4 and Sideroad 25 near Teeswater.

The fire destroyed two structures filled with hay and straw. No livestock were lost.

The Ontario Provincial Police said the fire is being investigated as suspicious.

Loblaws sales, profits increase

Loblaw Cos. Ltd. reported a 4.1 per cent increase in sales and a profit of $751 million compared with $714 million for the second quarter of its fiscal year.

Sales were $15.3 billion.

Same-store sales increased by only 1.6 per cent which is less than food inflation measured by Statistics Canada.

Canadian whey exports to U.S. to be tariffed

 

Canadian exports of whey and similar dairy proteins to the United States are scheduled to be hit with a 50 per cent tariff on Aug. 19.

President Donald Trump repeated attacks on Canada’s supply management system for dairy and poultry when he signed the new executive order.

Canada is exporting about $200 million worth of dairy proteins to the U.S., most of it whey.

There is keen demand for protein foods, much of it stemming from the injection of GLP products to reduce weight and control diabetes.

Canada ‘s dairy industry has long sought markets for skim milk powders and whey and before it discovered a way to export to the U.S., was selling its surplus as feed for calves and other livestock.

AGCO sales down 19.7 per cent

 

Farmers are tightening their belts and are reducing new machinery purchases, prompting AGCO to adjust production and dealer inventories.

Its sales in North America were down by 17.9 per cent for its second fiscal quarter and by 15 per cent for the first half of the year.

It fared better on world-wide totals which were down by only one per cent in the second quarter.

“While near-term market conditions are difficult, we are confident in the strategic actions we have taken to strengthen AGCO's competitive position and are committed to executing our Farmer-First strategy, expanding technology adoption and creating long-term value for our shareholders,” said Eric Hansotia, AGCO's chairman, president and chief executive officer.

Feds promise $50 million

The federal government is promising to give National Products Canada $50 million to support investments in food manufacturing.

The government set up National Products Canada in 2015 as a non-profit organization. So far it has invested $11.9 million in early-stage ventures.

CFIA cancel, suspends licences

 

The Canadian Food Inspection Agency has cancelled the licence of Dan Gifts Inc. of Laval, Que.

It said the company failed on the following points:

 

• Identification and analysis of hazards;
• Complaints, recall and traceability procedures;
• Failure to give assistance to the inspector;
• Failure to provide the requested documents, information and access to data.

It also suspended the licence of Montreal Pita Inc.

It cited sanitation, biosecurity and biocontainment; pest control, and implementation of a preventive control plan.

Bacon on recall

 

A Maple Leaf Foods subsidiary in Illinois is recalling about 12,000 pounds of bacon because it was not presented for re-inspection by United States officials.

The products were produced in Canada and were intended for distribution throughGrocery Outlet in Idaho, Oregon and Washington. 

Growmark buys Haley’s Elevator

Central Ontario FS, a retail division of GROWMARK Inc., has bought Haley’s Elevator Inc. of Burford.

The elevator will provide grain marketing services to Brant, Norfolk and Oxford counties.

“This strategic acquisition represents a key step in the continued growth of our grain elevator system. It enhances our ability to serve growers in the region and reinforces our commitment to providing trusted, local solutions backed by the strength of our co-operative network,” the companies said in a joint news release.

The family-owned elevator services corn, soybeans, rye and soft red wheat.

The elevator has a storage capacity of 1.4 million bushels, with a receiving capability of 25,000 bushels per hour and a drying capacity of 3,600 bushels per hour of corn at a 10-point moisture removal.

Beef farmers announce $2,500 scholarship

 The Beef Farmers of Ontario is setting up an annual $2

,500 scholarship on honour of Dr. Ira Mandell.

The first winner is PhD student Madeline McLellan who will research beef rations and the impact on carcass qualify.

The Dr. Mandell Beef Research Award will recognize exceptional research that advances knowledge, innovation and sustainability.

The BFO said throughout his career, Dr. Mandell made significant contributions to beef production and meat-quality research, education and critical research infrastructure. 

He played an influential role in developing the Ontario Beef Research Centre, helped modernize the University’s meat research

facilities and served as an advisor to BFO’s Research Committee for more than 20 years. 

He helped shape research priorities that continue to benefit Ontario beef farmers.

“Dr. Mandell understood the importance of connecting academic research with the practical needs of beef farmers and the broader industry,” said BFO president Jason Leblond.

“This award is a fitting way to recognize his remarkable legacy while encouraging emerging researchers to pursue innovative work that will benefit Ontario’s beef sector for years to come,” Leblond said.

McLellan’s research examines how supplementation with guanidinoacetic acid (GAA) and rumen-protected methionine affects muscle energy metabolism, feed efficiency and beef quality.

Her findings could help Ontario beef farmers improve productivity, manage production costs and continue delivering high-quality beef to consumers, BFO said.

The research may also support the future approval of GAA as a feed ingredient for beef cattle in Canada, potentially providing producers

with an additional science-based nutritional tool.

“Madeline’s research is a great example of the practical, industry-focused work this award was created to recognize,” said Kim Jo Bliss, chair of BFO’s research Ccmmittee. 

“Her work could help farmers improve feed efficiency and animal performance while continuing to produce high-quality

beef. It reflects Dr. Mandell’s commitment to research that addresses real-world challenges and

delivers practical value for Ontario beef farmers.”

                           -30-

 

U.S. farm subsidies climb again

Farm subsidies are poised to increase to $55.4 billion US ($78 billion Cdn) this year, provided politicians approve the current ask for $11 billion.

Brooke Rollins, U.S. Secretary of Agriculture, said this additional money is meant to be a springboard, not a new floor for government support.

The administration is requesting $10 billion in temporary economic assistance for 2026 row crop and specialty crop producers and $1.1 billion for producers hit by catastrophic freeze losses this past winter

If approved, that money would come on top of the $44.3 billion in government payments USDA’s Economic Research Service has estimated for farmers this year. Combined, that would total $55.4 billion.

Whatever happened to the Uruguay Round trade agreement to cap farm subsidies? Could Canadians impose countervailing duties - or at least threaten to do so as a counter to Trump's tariff threats?

Pollution closes beaches

All beaches in Huron County are currently unsafe for swimming, according to the latest testing from Huron Perth Public Health.

The health units did not say whether the pollution is from flooded municipal sewage treatment plants or from manure runoff from farms.

After taking water samples on Wednesday, the HPPH team said all of the 13 beaches tested showed higher than acceptable bacteria levels.

Cautions against swimming have been posted at Amberley, Ashfield, Port Albert, Sunset, Goderich Main, St. Christopher's, Rotary Cove, Blacks Point, Pavilion Road, Hay, Port Blake, Bayfield Pier, and Howard Street beaches.

The Health Unit says those who swim risk being exposed to bacteria that may cause diarrhea or infections of ears, nose, throat, eyes, and skin. 

Updates from water sampling will be posted soon.

Dutch offer cash to retire farmers

The Dutch government has set aside $1.2 billion to pay farmers to retire.

The fund aims to reduce nitrogen manure pollution.

The measure is open to micro, small and medium-sized livestock farms raising dairy cattle, pigs, chickens, turkeys, veal calves, dairy goats, rabbits, meat ducks and other cattle. 

Priority will be given to farms located in areas where nitrogen levels are high.

Eligible participants will receive direct grants covering between 100 and 110 per cent of eligible costs, providing a strong financial incentive for producers who decide to cease operations permanently. The programme will remain in force for five years.

I know some farmers who have moved to Canada because they were frustrated by changing environmental regulations mainly related to manure.

Beef plant closure hits Ontario hard

JBS USA announced it is closing its beef-packing plant at Souderton, Pennsylvania, leaving 2,300 weekly marketings from Ontario looking for a new home.

There aren’t many in Ontario which is dominated by the Cargill plant in Guelph. Norwich Packers and Ontario Halal Meat Packers of Milton are possibilities for small volumes.

Beef Farmers of Ontario president Jason Leblond of Powassan said the scheduled closure “is concerning for Ontario’s beef sector” but that the organization “will continue working to understand the impacts … and advocate for solutions that maintain strong market access and competitive pricing.”

Food systems analyst Kevin Grier said in an online post that no other states within the region have anywhere near the slaughtering capacity of Pennsylvania.

“While it is easy to see why the U.S. and the western Canadian industry sloughed off the news, it is a concern for Ontario. Ontario cattle feeders might be the only ones in North America that are worried about Souderton.”

Beef packers have been losing money on every animal slaughtered this summer and the Pennsylvania plant Is not the only one that has closed.

Dairy industry applauds Trump’s tariffs

 

The National Milk Producers Federation (NMPF) and the United States Dairy Export Council (USDEC) have issued a joint statement strongly supporting the President Donald Trump’s decision to impose 50 per cent tariffs on Canadian dairy imports.

Trump has signed the executive order, but paused implementation until late August.

The tariff aims to gain easier access to the Canadian market.

Trump and the dairy industry have persistently complained about the way Canada administers import quotas.

The Canadian organizations that speak for dairy farmers want Canada to hold firm.

Mandatory COOL not dead

Despite repeated losses in trade decisions, the United States has leading politicians still lobbying for mandatory country-of-origin labelling of meat products.

Among them is Secretary of Agriculture Brooke Rollins, R-CALF which lobbies for ranchers and Republican Senator Mike Rounds from South Dakota.

It’s in this context that the The Meat Institute has declared its opposition to a reinstatement of the 2013 Mandatory Country of Origin Labeling .

In a release to media, the Meat Institute cited a new economic analysis by Decision Innovation Solutions that concluded such labeling measures would cost the economy $1 billion via increased expenses for ranchers, processors, retailers and consumers.

Details from the study included the following arguments:

 

• Compliance costs associated with tracking, record keeping, product segregation, labeling and verification would substantially increase costs throughout the beef and pork value chains.

• Those costs would total $1.02 billion for year one ($721 million in beef and $296 million in pork), and would escalate to $4.8 billion through five years and $10.1 billion through 10 years.

• Costs would be passed to consumers, who would pay $835 million more annually for beef and $284 million more for pork.

• Compliance costs for retailers would be $488 million the first year and $5 billion over 10 years.

• Finally, with ground beef’s dependency on imported lean beef, mCOOL compliance costs would range between $202 million and $688 million.

Julie Anna Potts, Meat Institute president and chief executive officer, said the study “proves there are real and significant costs to mCOOL,” adding that the regulation “would burden both packers and livestock producers with added costs at a time when beef packers are losing money due to the smallest herd size in 75 years causing record high prices for cattle.”

Rollins said at a public meeting in April as public meeting in April that she was a “big supporter” of the regulation, adding it was “a transparency question. … Everyone in America should know where their food is coming from.”

Rollins and USDA have pushed processors to adopt the voluntary “Product of USA” labeling program that went into effect at the start of this year, and touted 10 processors that had joined the initiative. None of them is among the top five meat packers in the U.S,