Country of Origin Labeling
Livestock producers have been hearing the word COOL a lot recently, but it doesn't refer to temperature. Instead, it is an acronym for Country of Origin Labeling, a new law passed as part of last year's farm bill.
COOL applies to fresh meats, fruits and vegetables. It was put into place at the request of industry groups who expect demand to increase from consumers who want to buy products of the U.S. - as long as those products are clearly identified. COOL is being implemented in two phases, a voluntary phase going on now and a mandatory phase beginning on Oct. 1, 2004.
Under Country of Origin Labeling rules, consumers will see a label on all unprocessed meats sold at retail identifying the source country. Food service places, such a restaurants, are exempt. Also, processed products, such as pre-cooked pot roasts are free of the labeling requirement. However, ground beef and other minimally processed foods must carry the label. Because cattle are produced in several stages, a label must identify the source of each phase. So, for example, beef could be simply labeled "product of the USA," or it could be "beef from cattle born in Mexico, raised and harvested in the USA." At this time, it will not be legal to carry a label of unknown origin.
Even though COOL does not become mandatory until Oct. 1, 2004, farmers are already wondering what they will have to do to comply with the legislation. The USDA is specifically not allowed to use COOL as a reason for mandatory individual animal identification. Most likely, it will be a simple process for Kentucky cattle producers to deal with the requirements. At the first point of sale, such as stockyards, farmers will identify their cattle as a group as being born in the U.S. As long as these cattle are maintained and managed as a unique group, they will comply with the rules. What producers will need to do is maintain an auditable record of their cattle, including sales, production and financial information.
No one really knows yet how useful COOL will be. Our UK work and research done at other universities shows that 20% of consumers will pay a premium for meats of known origin, such as Ky produced. We don't know yet how much of this will apply to US produced and how much increased value this will be to consumers. The processors are also very worried about the added costs of maintaining identity and labeling.
While COOL does not require individual animal identification, producers who do identify and maintain records on each animal will easily comply with the legislation. The marketing system is already paying a premium for source verified animals because an increasing proportion of consumers are concerned about source, quality and safety issues. So, while Country of Origin Labeling may be seen as just another rule, it may enable the livestock industry to do a better job of meeting consumers' needs and lead to stronger product demand.
For More Information
For additional information, please contact, Lee Meyer.