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Country of Origin Labeling (COOL) and the Cattle Industry
Derrell S. PeelLivestock Marketing Specialist
Oklahoma State University
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Mandatory COOL
• Proposed Mandatory Rules – Issued October 27, 2003
• Comment Period– Ends December 29, 2003
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What is Country of Origin Labeling
• Included in 2002 Farm Bill (PL 107-171)
• Amends Ag Marketing Act of 1946• Covers 500+ retail products
– Beef, Pork, Lamb (whole muscle and ground)– Fresh and Frozen Fruits and Vegetables– Seafood (wild and farm-raised)– Peanuts
• Administered by AMS
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What Country of Origin Labeling Isn’t
• Is not animal health or food safety– FDA (food)– FSIS (meat)– APHIS (animals)
• Is not market grading– AMS
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Components of COOL
• Retail product must be labeled• Food service excluded
– Including deli’s and salad bars in retail establishments
• Excludes processed foods
• Becomes mandatory September 30, 2004
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Who Must Label - Retailer
Retailer has meaning given in Perishable Agricultural Commodities Act (PACA) – a business engaged in the selling of fresh and frozen fruits and vegetables at retail with an annual invoice value of more than $230,000– Approximately 4,500 licensees (37,000 stores)– PACA definition excludes butcher shops, fish
markets, and exporters
Exempts food service establishments including those within retail establishments (e.g. delis and salad bars)
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Consumer Notification Required at Retail
• Country of Origin• Label or notice must:
– Be legible– Be in English– Not obscure other required
information
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Exclusions
• Covered commodities are excluded if an “ingredient in a processed food item”
• Regulation defines “processed food item”
• Does not exclude covered commodities just because they have been further prepared for consumption
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Processed Food Item – Change of Character
• A combination of ingredients that include a covered commodity that has undergone a physical or chemical change, and has character that is different from that of the covered commodity
• Examples of covered commodities excluded because of change of character:– Oranges squeezed to make orange juice– Pork bellies cured and smoked to make bacon
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Processed Food Item – Combination of Substantive Food Components
• A covered commodity that has been combined with:– Other covered commodities– Other substantive food components, And has a character different than that of the
covered commodity• Examples of covered commodities excluded
because they are a combination of substantive food components:– Bagged salad (e.g. lettuce, carrots and cabbage)– Fruit trays/Vegetable trays (e.g. party trays)– Seafood medley (e.g. shrimp, scallops and clams)– Mixed nuts
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Covered Commodities Required to be Labeled
• Examples:– Solution-enhanced and seasoned pork
loin– Cooked beef roast– Canned salmon– Bagged lettuce– Canned roasted and salted peanuts– Breaded shrimp
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Covered Products – Muscle Cuts of Beef, Lamb and
Pork• “All muscle cuts of beef, lamb and
pork whether chilled, frozen, raw, cooked, seasoned or breaded.”
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Beef Products
• Whole muscle meats– Product of U.S.A.– Mixed Origin– Imported
• Ground beef– Each specific origin included in the
blend must be included on the label in alphabetical order
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Labeling Requirements
• Product of U.S.A.– Born, Raised and Slaughtered 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)
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Labeling Requirements cont.
• Mixed Origin (whole muscle)• Examples
– Imported from country X, raised and slaughtered in U.S.
• With records: Born (and raised) in country X, raised and processed in U.S.
– Imported from country Y, slaughtered in U.S.
• With records: Born in country X, raised in country Y, processed in U.S.
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Labeling Requirements cont.
• Mixed Origin (ground or blended)• Example
– Ground beef – Product of Australia; Imported from Mexico, Raised and Slaughtered in U.S.A.; Product of U.S.A.
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Recordkeeping
• Retailers must label covered commodities– Must keep Point of Sale records for 7 days– Must keep records of origin for 2 years
• Suppliers must provide information about country of origin– Producers, handlers, processors, packers,
importers
• Verifiable (auditable) records– Suppliers must maintain records– Affidavits may be used to certify origin and
existence of records
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Recordkeeping - Suppliers
• “Any person engaged in the business of supplying a covered commodity to a retailer, whether directly or indirectly, is required to maintain records to establish and identify the immediate previous source and the immediate subsequent recipient of a covered commodity, in such a way that identifies the product unique to that transaction, for a period of 2 years from the date of the transaction.”
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Recordkeeping - Suppliers
• Suppliers must provide origin information to buyers
• Records must identify previous source and subsequent recipient of product
• Must possess or have legal access to records that substantiate origin claims
• Must maintain records unique to each transaction for 2 years
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Recordkeeping - Suppliers
• “For suppliers that handle similar covered commodities from more than one country, the supplier must be able to document that the origin of a product was separately tracked, while in their control, during any production or packaging processes to demonstrate that the identity of the product was maintained.”
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Enforcement and Violations
• Retailers and suppliers are subject to enforcement provisions– $10,000 fine for willful violations
• USDA-AMS will conduct compliance reviews
• USDA-AMS will initiate investigations and enforcement actions
• Other statutes may apply as well
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COOL is a Food Labeling Bill
• Food Labeling is covered by the Food and Drug Administration (FDA)
• Code of Federal Regulations– Title 21, Chapter I, Part 101.18 – Misbranding of Food
• “Among the representations in the labeling of a food which render such food misbranded is any representation that expresses or implies a geographical origin of the food except when such representation is a truthful representation of geographical origin”
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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
• Breeding animals are covered by COOL
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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
• Must be able to trace animals from different source groups through management sorting and commingling into several sales groups
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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
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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
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Individual Animal ID
• Required? – No, in fact, forbidden as a USDA mandate
• Necessary? – Maybe not• Helpful? – Definitely
– Especially for stocker and feedlot sectors
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Current Status of COOL
• House and Senate Appropriations actions have different language regarding implementation of COOL– These differences are yet to be
reconciled
• Various proposals to modify or repeal COOL
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Challenge for the Industry
• Plan for compliance– Rules are uncertain and subject to
change
• Make beneficial use of new information– Use records to improve production
and marketing
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