ORGANIZATION FOR COMPETITIVE MARKETS

P.O. Box 6486

Lincoln, NE 68506

Web site: www.competitivemarkets.com

Date: November 25, 2002 For Immediate Release

Contact: Fred Stokes: 662.476.5568

Steve Cady: 402.792.2320

OCM Says Country of Origin Labeling Benefits Outweigh Cost

The Organization for Competitive Markets said today that country of origin labeling benefits will outweigh USDA’s cost estimate of thirteen cents per week for consumers. Labeling provides opportunities to build consumer trust, loyalty and brand equity in their purchasing of beef, pork, lamb, fish, fruits, vegetables and peanuts that are grown, raised and processed in the United States. The USDA estimates, though likely too high, were released and published in the Federal Register last week. [Federal Register: November 21, 2002 (Volume 67, Number 225)]

“Surveys show that 90% of consumers want to know where their food is grown and processed, just as they now are informed as to where their clothes are made,” said Fred Stokes, OCM president. “Producers will now have the opportunity to showcase U.S. produced products which are produced and processed under the most demanding food safety system in the world. There is no evidence that consumers are unwilling to pay thirteen cents per week in return for the ability to choose their meat, fish and produce with confidence and knowledge of its origins.”

Despite the fact that no program has yet been developed, USDA estimated the overall cost of compliance at approximately $1.97 billion. The cost estimate is not just for livestock, but for all covered commodities. It includes the overall labor cost for all producers, all food handlers (including processors), and all retailers. The U.S. population is 284,796,887. The annual cost per consumer is thus $6.91 or 13 cents per week.

“Unfortunately, USDA only estimated the cost of the program while failing to address the benefits, which is a key econometric error,” said Steve Cady, OCM executive director. “In addition, it is difficult to understand how USDA could estimate the cost side of the equation when the program has been neither designed nor implemented. For example, USDA could choose to implement regulations to track only foreign products, while allowing the domestically produced product to be labeled as a product of the United States. This strategy would minimize the burden on many domestic industry players.”

The Organization for Competitive Markets is a multidisciplinary, nonprofit group of farmers, ranchers, academics, attorneys, and policy makers dedicated to reclaiming the agricultural marketplace for independent farmers, ranchers and rural communities.

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