1. Country of Origin Labeling (COOL) and the Beef Industry March 13, 2003

2. What Country of Origin Labeling Isn’t Is not animal health or food safety –FSIS (meat) –APHIS (animals) Is not market grading –AMS

3. What Country of Origin Labeling is Included in 2002 Farm Bill (PL 107-171) Amends Ag Marketing Act of 1946 Covers 500+ retail products –Beef, Pork, Lamb –Fresh Fruits and Vegetables –Seafood –Peanuts Administered by AMS

4. Components of COOL Retail product must be labeled Food service excluded Excludes processed foods Becomes mandatory September 30, 2004

5. Unprocessed Beef Products Requiring Labeling Whole muscle meats –Product of U.S.A. –Mixed Origin –Imported Ground beef –Must list all countries in order of prominence

11. Labeling Requirements Product of U.S.A. –Born, Raised and Processed in the U.S. Product of Country X –Labeled from entry until final sale –Label only covers importing country (not other countries of birth or production)

12. Labeling Requirements cont. Mixed Origin (whole muscle) Examples –Born in country X, raised and processed in U.S. –Born and raised in country X, raised and processed in U.S. –Born in country X, raised in country Y, processed in U.S.

13. Labeling Requirements cont. Mixed Origin (ground or blended) Example –From cattle born and raised in country X processed in U.S.; country Y product; and U.S. product –Must reflect order of prominence by weight

14. Recordkeeping Retailers must maintain records for 2 years Suppliers must provide information about country of origin –Producers, handlers, processors, packers, importers Verifiable (auditable) records –Retailers will ensure with contracts or other means; suppliers must maintain records –Domestic product must identify location of producers and production facilities Self-Certification is not sufficient

15. Implications for Cattle Industry Record requirements are unclear Liability will transfer down production chain –Retail –Wholesaler –Packer –Feeder –Stocker –Cow-calf Retailers will shift liability to suppliers for incorrect information

16. Auditable Record Trail Full traceability would require lifetime animal ID Less than full traceability may be sufficient but is complicated –Retail product must be traceable to one or more cow-calf producers Third-party verification is likely to be required

17. Implications for Cattle Industry Probable minimum cow-calf records –Owner and location –Breeding herd inventory Purchased animals Cull sales Raised animals –Number and Sex of Births by year –Animal sales Buyer Date Animal sex

18. Implications for Cattle Industry Probable minimum stocker records Put-together groups –Seller and location of purchased animals Date and sex of purchased animals –Animal sales Buyer Date Animal sex

19. Implications for Cattle Industry Probable minimum feedlot records Each pen –Seller and location of purchased animals Date and sex of purchased animals –Animal sales Buyer Date Animal sex

20. Implications for Cattle Industry Probable minimum packer records Each shift or slaughter group –Owner and location of purchased animals Date and sex of purchased animals –Meat sales by slaughter/fab group Lot number, date and plant

21. Challenge for the Industry Plan for compliance –Beef animals born February 2003 and later are subject to compliance –Rules are uncertain and subject to change Make beneficial use of new information –Use records to improve production and marketing

22. Prepared by: –Derrell S. Peel, Dept of Ag. Econ. In collaboration with: –Clem Ward, Dept of Ag. Econ. –Dave Lalman, Dept of Animal Science –Don Gill, Dept. of Animal Science –Livestock Marketing Information Center