Country-of-origin food-labeling rules about to take effect

Starting next week, grocery shoppers will be able to distinguish more easily between U.S.-grown foods and imported products. Foods such as meat, fruits and vegetables will carry country-of-origin labeling beginning Sept. 30, under federal legislation that requires retailers to inform consumers where certain agricultural products come from.

The new rule is a victory for California farmers and ranchers, who have long fought for country-of-origin labeling, or COOL, because they feel consumers would seek out and buy more U.S. agricultural products if given the information and choice, said Kenny Watkins, second vice president of the California Farm Bureau Federation.

"This is a success story. California Farm Bureau has been in support of country-of-origin labeling for years and we're glad to see it finally implemented," he said. "We hope it'll be implemented logically and sensibly so it provides a benefit to our producers and consumers."

Supporters say the new labels will help consumers be more discriminating about the foods they buy.

"California farmers and ranchers produce the safest and highest-quality food in the world. We believe consumers also recognize this and they should be given the opportunity to purchase domestically produced food," said Elisa Noble, CFBF director of livestock, public lands and natural resources.

COOL applies to fresh beef, lamb, chicken, goat and pork, as well as fresh and frozen fruits and vegetables, macadamia nuts, pecans, ginseng and peanuts. Wild and farm-raised fish and shellfish have had to disclose country of origin since 2005.

Retailers may use a wide range of methods to show country of origin, including labels, placards, stamps, bands, twist-ties and pin tags. Some product labels, such as those on meat, may list multiple countries if the animals were born, raised and finished in different countries.

The new rule also allows state, local or regional labeling of produce, such as "California Grown," "Washington apples" or "Idaho potatoes," to be used to identify origin.

The new rule does not cover processed foods such as sausage, corned beef, chicken tenders, certain salad mixes or fruit cups with melons, bananas and strawberries. Food sold through food-service establishments, including restaurants, delicatessens, schools, hospitals and other institutions, also are exempt.

COOL first became law under the 2002 Farm Bill, but implementation was delayed due to resistance from sectors that raised concerns about the practicality and logistics of some of the provisions, as well as increased costs that producers, retailers and consumers could have to bear. Others worried there would be extra administrative and record-keeping burdens placed on businesses.

Barry Bedwell, president of the California Grape and Tree Fruit League, said COOL requirements have since been much simplified and streamlined in the 2008 Farm Bill. The new version of the legislation also reduced some of the liability and penalty exposure that had been an issue in the 2002 version, he added.

"We think that once people get a true understanding of this, it's going to work well," he said.

The United Fresh Produce Association reported that more than 50 percent of fresh produce sold in retail grocery stores today already carries country-of-origin labeling on packaging or Price Look-Up stickers, while many retailers provide COOL information on in-store signs.

The effect of the new rule is expected to be relatively small on individual producers, according to the U.S. Department of Agriculture. Retailers and suppliers, including processors, wholesalers, handlers and importers, will likely feel the most impact.

USDA estimates U.S. companies will spend $2.5 billion complying with the new rules during the first year and an annual $499 million thereafter for maintenance. USDA estimates the average implementation cost per firm is $376 for producers, $53,948 for suppliers and $235,551 for retailers.

Producer affidavits are sufficient to substantiate origin of meat or produce. For livestock producers, other acceptable methods include animal health papers, import or customs documents and National Animal Identification System records. The legislation allows standard records "maintained in the course of normal business" to serve as verification of origin. All parties of the supply chain are required to maintain their records for one year.

Richard Quandt, president of the Grower-Shipper Vegetable Association of Santa Barbara and San Luis Obispo Counties, said his organization has been supportive of the concept of country-of-origin labeling, noting that most other products that consumers buy already identify where they are made.

"We think overall it's beneficial for California agriculture," said Quandt. "Most of the farmers in our region do not have operations in other countries, so they feel like they're competing with a lot of the foreign-grown stuff in somewhat uneven terms. They feel that all things being equal, consumers would probably select stuff that our local farmers are producing over things that are grown in some other country."

Matt Byrne, executive vice president of the California Cattlemen's Association, said that while it remains to be seen how much revenue or additional markets can be developed through COOL, "the goal from our side is that we be able to pass a portion of that back to the producer."

"I think we are in a time where there are a lot of questions that are being raised by consumers about where their food comes from," he said. "If there's value that can be identified in one type of labeling or an indication of a specific origin that a consumer wants to purchase, that value that is generated needs to be shared back through the chain."

The publishers of Consumer Reports magazine said a poll it conducted last year found that 92 percent of Americans agree that imported foods should be labeled by their country of origin. Consumers Union called implementation of COOL "a long-awaited change."

"We think it will be a great benefit for consumers," Jean Halloran, director of food policy initiatives for Consumers Union, said. "The new labels will give consumers important new information."

(Ching Lee is a reporter for Ag Alert. She may be contacted at clee@cfbf.com.)