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,