Cattle Producers Alone Stand To Reap
Over $5.9 Billion Annual Benefits From COOL

Lincoln, NE ~ The Organization For Competitive Markets (OCM) said that the cattle producers alone could benefit by more than $5.9 billion annually in benefits from country-of-origin labeling.  OCM cited a new legal and economic analysis of the labeling law released today by the International Trade and Policy Center at the University of Florida.

The study, titled "Country of Origin Labeling: A Legal and Economic Analysis" cited five different consumer studies and surveys conducted since 2002, and incorporating USDA scanner data, the analysis finds consumers are willing to pay an additional $3.1 billion for labeling of just ground beef. The authors further found that if consumers are willing to pay an additional $965 million per year to know the country of origin of steaks, and that consumers may be willing to pay an additional $2.8 million annually for labeling of steaks and roasts combined.  The total benefit arising from country-of-origin labeling of ground beef, steaks and roasts, could be at least $5.9 billion annually. This does not include the additional benefits from labeling pork, lamb, fruits, vegetables and peanuts.

"This legal and economic study provides definitive evidence of the financial benefits that producers stand to gain from COOL," says Fred Stokes, OCM President. "This analysis confirms that the benefits of COOL far outweigh even the most unreasonably bloated cost estimates. We already know that consumers want their meat labeled and that they have confidence in American-grown product. Now, the numbers are in as to the benefits for producers. It’s time to focus on the positive aspects of COOL and work to implement a program that answers the consumer’s call and meets the producer’s needs."

The University of Florida study is co-authored by five respected university scholars from across the United States:  John Van Sickle, Director of the International Agricultural Trade and Policy Center and Professor of Food and Resource Economics, University of Florida; Roger McEowen, Associate Professor of Agricultural Economics and Extension Specialist, Agricultural Law and Policy, Kansas State University and Member of Kansas and Nebraska Bars; C. Robert Taylor, ALFA Eminent Scholar and Professor Agricultural Economics, Auburn University; Neil E. Harl, Charles F. Curtiss Distinguished Professor of Agricultural Economics, Iowa State University and Member of the Iowa Bar; and John Connor, Professor of Agricultural Economics, Purdue University.

The authors further conclude that USDA does not have the legal authority to impose a regulatory burden on producers and so the producer cost should be very low.  Further, USDA should merely allow food to be marked U.S. origin unless it is imported. Virtually all imported products are labeled as to country of origin under WTO rules and that information can merely be forwarded to the consumer.  The cost of record keeping for the labeling program are less than one-tenth of a cent per pound of food sold to consumers.

CCMP is not a membership organization. Funding comes from livestock auction markets and independent feeders on a per-head basis at the point of sale. All contributions are tax deductible under OCM’s non-profit status. For more information, contact Steve Cady at 402.792.0041 or visit the web site at www.competitivemarkets.com. 

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.