A project of the
Organization for Competitive Markets
 
Date: May 8, 2003
FOR IMMEDIATE RELEASE
 
Contact: Steve Cady: 402.792.0041

T E S T I M O N Y

The Honorable Cap Dierks, of the
Organization for Competitive Markets,
before the Kearney, Nebraska, USDA
Listening Session Regarding Implementation
of Country of Origin Labeling
 

My name is Cap Dierks, I am a board member of the Organization for Competitive Markets.  I am also a veterinarian, a rancher and the former chair of the Nebraska Senate Agriculture Committee.  I would like to speak in favor of country of origin labeling as a major benefit to consumers and producers.  I would ask that USDA implement the least cost alternative program which is to recognize the reality that most covered commodities are produced exclusively in the U.S. and virtually all imported commodities enter this country with a mark of origin consistent with WTO rules.  In other words, the USDA should provide that all covered commodities may be labeled as U.S. origin except those containing marks of origin from other countries.
 
FIRST, the Labeling Legislation will provide consumers with the information they want and need to make intelligent choices in the retail store for themselves and their families.  Information and choice are fundamental values in our markets and in our democracy.  It is also the basis for the consumer confidence in our food system that other nation’s do not enjoy.  That is why we have been insulated from the global food scares that have happened elsewhere.  I fail to see how anyone can oppose information and choice. 
 
SECOND, a recent independent legal and economic analysis released by the International Agriculture and Trade Policy Center at the University of Florida shows that the benefits of labeling will far outweigh the costs.  (The full report is at http://www.iatpc.fred.ifas.ufl.edu/docs/policy_brief/PBTC_03-5.pdf.)  The consumer willingness to pay for the labeling of steaks, roasts and ground beef alone is nearly $6 billion. This does not include the consumer willingness to pay for country of origin labeling of pork, lamb, fruits, vegetables, nuts or fish.  The study also shows that the cost of labeling will be less than one-tenth of a penny per each pound of covered commodity sold to the nations’ consumers.  
 
THIRD, USDA should implement the least cost alternative system that complies with the law.  That means that USDA should presume that all covered commodities are of U.S. origin and merely require that industry track the existing marks of origin on imported product.  This rule would recognize the practical reality that the vast majority of covered commodities are produced in the U.S., and avoid the unjustifiable requirement that domestic product be tracked. 

Virtually all covered commodities enter the U.S. with a mark of the country of origin, including meat, fruits, vegetables, and nuts.  Article 9 of GATT specifically allows these marks of origin so there is no WTO violation.  U.S. trade law has required these marks of origin for over 60 years.  Live animals that are imported by packers for immediate slaughter need not be marked because the packer knows where they came from and can provide that information to its customers.  Feeder cattle from Mexico bear an “M” brand under the APHIS tuberculosis program.  Feeder pigs from Canada must have a permanent mark to trace them back to the farm of origin under U.S. animal health regulations.  Those permanent marks can be used by packers to sort the animals just as they sort and track animals for the Certified Angus Beef program and the various other special label products that they currently segregate and identify for their customers. 

There is no difference.  We can identify these animals consistent with WTO rules.  Packers and processors have the information and we only ask that the information be forwarded to producers.  U.S. farmers and ranchers do not need to be regulated, and the Labeling Legislation does not allow you jurisdiction over producers.
 
In sum, we only ask for the common sense approach in implementing this important law using the least cost alternative.  This law is far less comprehensive than the Food Nutrition Labeling Act of 1994 that covered two-thirds of the U.S. food economy in requiring independent laboratories to certify nutritional label claims.  The sky did not fall when that labeling program was implemented.  Now we would never do without the nutritional information.  Labeling as to mere country of origin is easy.  We need no independent laboratories, we need no chemical analysis, we need no description of every component and additive in the covered commodities. 
 
The benefits far outweigh the minimal costs.  The industry already keeps most of this information in the regular course of business.  The USDA need only presume all covered commodities are of U.S. origin and forward the origin information currently existing on imported product to the consumer.  The only independent academic study that exists on this issue supports this approach.  Thank you.

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.