P.O. Box 6486
Lincoln, NE 68506
Web site: www.competitivemarkets.com
Date: February 10, 2003 For Immediate Release
Contact: Steve Cady: 402.792.0041
100 Groups Tell Congress $1.9 Billion Estimate for Country of Origin
Labeling is ‘Unsupportable’
Letter Follows Meeting in which USDA Representatives Say Estimate Is
Not Final
Washington, D.C.—The Organization for Competitive Markets joined one hundred farm, rural and consumer organizations in telling Congress today that a much-publicized Agriculture Department cost estimate for labeling fresh meat and produce by country of origin is "unsupportably high and based on flawed assumptions." The groups said the estimate also fails to consider the benefits consumers will see from labeling.
In a letter to House and Senate members, Americans for Country of Origin Labeling said the Agriculture Department ignored government regulations and industry practices that already cover most of the expenses associated with country of origin labeling. The letter followed a meeting in which USDA representatives conceded the controversial $1.9 billion government estimate is very preliminary.
"It doesn’t mean that that number is the ultimate number," said Agricultural Marketing Service Director A.J. Yates in the January 27 meeting with coalition leaders. Yates and others made two major concessions about the USDA estimate in the meeting:
* It should be reduced to reflect those who do not supply the retail market.
* It should be reduced to reflect country of origin records already being kept by producers, industry and government.
These two changes would bring down the USDA estimate substantially, Americans for Country of Origin Labeling said in its letter. "Regrettably, the release of these unsupported cost estimates could mislead members of Congress and undermine support" for labeling, the coalition said. "We would like you to join us in urging USDA to integrate country of origin labeling into pre-existing systems currently used in the food and agriculture sector, to require that a competent study be performed by third party researches on costs and benefits, and to minimize the burden on the American food producer to the greatest extent practicable."
The labeling provision was included in the farm bill enacted last year. It requires that all fruits, vegetables, peanuts, meat and fish be labeled on grocery store shelves by country of origin starting in September 2004.
Supporters point out that systems already in place will ease the transition to mandatory country of origin labeling. For example, beef bound for the school lunch program is already certified for domestic origin, slaughter plants already segregate beef by grade, and those grade labels already follow products to the grocery store meat counter. In addition, imported meats and produce are already required to be labeled by country of origin at their port of entry and those labels follow products to retail outlets.
Finally, supporters point out, several states already require retail country of origin labeling for various food products and the cost of these programs has been very modest.
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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