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USDA's Agricultural Marketing Service has issued a five-page
document summarizing the technical requirements and cost
estimates of its interim final rules on mandatory country-of-origin
labeling (COOL), which go into effect Sept. 30.
The rules cover meat products including muscle cuts of beef,
veal, lamb, chicken, goat and pork, as well as ground beef,
ground pork, ground lamb, ground chicken and ground goat.
They also cover fish, shellfish, fresh and frozen fruits
and vegetables, peanuts, pecans, ginseng and macadamia nuts.
Technical requirement highlights
- The rule
does not apply to covered commodities produced and packaged
before Sept. 30.
- Animals
present in the United States on or before July 15 that
remain continuously in the United States will be considered
of U.S. origin.
- Foodservice
establishments are exempted by the statute.
- Processed
food items (including those that are cooked, cured, smoked
or restructured) are exempted from labeling by the statute.
Examples include meatloaf, meatballs, fabricated steak,
breaded veal cutlets, corned beef, sausage, breaded chicken
tenders, teriyaki-flavored pork loin.
- Labeling
rules regarding ground beef, ground pork, ground lamb,
ground goat and ground chicken require listing all countries
of origin that may be reasonably contained. In determining
what is reasonable, when a raw material from a specific
origin is not in a processor's inventory for more than
60 days, that country shall no longer be included as a
possible country of origin.
- Records
must be maintained for one year and available within five
days if requested by a USDA representative.
- Slaughter
facilities must possess or have legal access to records
that substantiate their origin claims. A producer affidavit
will be considered acceptable evidence, provided it is
made by someone having firsthand knowledge of the animals'
origin and identifies the animals unique to the transaction.
- If slaughtered animals
are part of the National Animal Identification System,
an official ear tag or the presence of any accompanying
animal markings can be used as the basis of origin claims.
Costs
USDA estimates the total first-year implementation costs for
all directly affected firms at $2.5 billion. Costs per firm
are estimated at $376 for producers, $53,948 for intermediaries
and $235,551 for retailers.
It put the estimated cost to the U.S. economy in higher food
prices and reduced food production in the tenth year after
implementation of the rule at $211.9 million.
To view the AMS summary document click here.
To view the entire rule document, click here.
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