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By Mike Barnett
Editor
House Agriculture Committee Chairman Bob Goodlatte has introduced voluntary country-of-origin labeling legislation in response to mandatory provisions required in the 2002 Farm Bill that would force retailers to inform consumers of the country-of-origin at the final point of sale for covered commodities.
H.R. 2068, the "Meat Promotion Act of 2005," would require the Secretary of Agriculture to establish a voluntary program that would allow producers to work with processors and retailers to provide labeling information in the marketplace in such a way that "informs consumers and benefits producers," Goodlatte said. Specifically, the legislation would permit retailers to label beef, pork and lamb as products of the United States if they are derived exclusively from animals born, raised and slaughtered in the United States.
"It has been three years since the enactment of the 2002 Farm Bill and yet there is still a lack of consensus about how the COOL provisions can best be implemented," Goodlatte said. "I have always favored a voluntary approach and the legislation we are introducing will replace the current mandatory system, with its potential for creating another layer of regulatory and business cost, with a voluntary program. This approach benefits consumers and producers and is preferable to a mandatory program that is more likely to hurt the people it was intended to help."
The proposed legislation drew kudos from the American Farm Bureau Federation (AFBF). That organization maintains the voluntary approach would ultimately give consumers—not the federal government—control of country-of-origin labeling of meat products.
"This voluntary, market-based program would appeal to consumers, successfully increase market visibility for U.S. food products and let farmers produce food instead of paperwork," said AFBF President Bob Stallman.
USDA has estimated the costs of the current mandatory country-of-origin labeling program—scheduled to take effect Sept. 30, 2006—could be as much as $4 billion in the first year alone, with several hundred million each year in recurring costs. USDA has also estimated that more than 60 percent of those costs would be borne directly by the U.S. meat and livestock industry.
"Mandatory country-of-origin labeling for meat would place significant new costs on beef, hog and sheep producers, with the largest impact falling on individual producers," Stallman said. "This is clearly a marketing issue, not a food safety issue, and by approving a voluntary program, Congress could be placing control in the hands of the consumers in the marketplace."
Stallman said consumers would be willing to pay a premium for origin-verified meat products, and he suggested it's up to the marketplace to meet the demand.
Jon Johnson, TFB associate director of commodity and regulatory activities, agreed, pointing to a multitude of branded beef products already available in grocery stores.
"I guess the thinking behind a lot of our folks is that if companies want to spend their own money to advertise their product or brand, then that is the most economical way to do it," he said. "Under a mandatory program, everybody is going to have to pay. And the only result will be a `Made in USA' label on products."
Johnson predicted the voluntary approach will pass the House.
"Folks I've talked to in Washington indicate there is strong support for this bill," he said.
