ORGANIZATION FOR COMPETITIVE MARKETS

P.O. Box 6486

Lincoln, NE 68506

Web site: www.competitivemarkets.com

Date: February 17, 2003 For Immediate Release

Contact: Steve Cady: 402.792.0041

OCM says Position Paper by Packer Lobbing Group on Labeling is Wrong

Lincoln, NE—The Organization for Competitive Markets dismissed a recent position paper, relating to country of origin labeling, by a packer lobbing organization, the National Pork Producers Council, as flawed and unreliable. The NPPC, which has long opposed labeling, makes the astounding claim that mere labeling of pork as to country of origin will increase production costs by over $10 per hog. A full reading of the NPPC position paper shows that the large majority of U.S. hog producers are likely to benefit economically from labeling and are not likely to incur recognizable cost.

The SOLE BASIS for NPPC’s fantastic cost estimate is the assumption that an animal traceback system will be required for implementation of labeling. There is no other basis for their cost estimate. They fail to recognize that TRACEBACK SYSTEMS ARE SPECIFICALLY PROHIBITED BY LAW. The country of labeling legislation states, verbatim, the following: “The Secretary shall not use a mandatory identification system to verify the country of origin of a covered commodity.”

“The labeling legislation is entirely clear that traceback systems are not an option for implementing the program,” said Fred Stokes, OCM president. “It escapes me as to how NPPC can make the claim that traceback systems will impose costs when they are prohibited in implementation of the program.”

“The agricultural economists that wrote the position paper, one of whom is a former employee of NPPC, committed economic malpractice,” said Clay Daulton, OCM board member and California rancher. “The piece, by Dermott Hayes and Steve Meyer, would never survive peer review if submitted to a professional journal.”

Significantly, the NPPC conceded that there may very well be benefits to U.S. producers from labeling. They acknowledge that surveys reveal the consumer preference for such labeling. They also acknowledge that U.S. pork could receive a premium price if consumers believe that it is superior in ways they value.

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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