CountryofOrigin Labeling COOL

1
Country-of-Origin Labeling(COOL)

• National Farmers Union
• July 20, 2005
• Senate Staff Briefing

2
COOL Legal Authority

• Mandatory country-of-origin labeling was included
  in the 2002 Farm Bill, and signed into law on May
  13, 2002 by President Bush.
  
• Under current law, USDA is required to implement
  mandatory COOL for produce, meats and peanuts, by
  September 30, 2006.
  

3
COOL Requirements

• Supermarkets and grocery stores will be required
  to provide the country of origin information of
  covered commodities on a label, stamp, mark,
  placard or other clear and visible sign.

4
Covered Commodities

• Fruits- (Fresh Frozen)
• Vegetables- (Fresh frozen)
• Fish and shellfish- Already Implemented
  Beef
  
• Pork
• Lamb
• Peanuts

5
U.S. Country of Origin

• Beef, Pork, and Lamb must be derived from animals
  born, raised, and slaughtered in the U.S.
  
• Fruits, Vegetables, and Peanuts must be
  exclusively produced in the U.S.
  
• Farm-raised Fish and Shellfish must be hatched,
  raised, and harvested in the U.S.
  
• Wild Fish and Shellfish must be harvested in U.S.
  waters or by a U.S. flagged vessel.

6
Verification of Origin

• Programs within USDA can serve as examples of how
  to verify country of origin on covered
  commodities.
  
• National School Lunch Program
• Market Access Program
• DoD Fresh Food Purchase Program
• Organic Labeling Program

7
Record Keeping

• The Secretary has the authority to require
  verifiable record keeping.
  
• Records for livestock should include all
  certification and identification forms provided
  by prior owners.
  
• Producers should be allowed to keep records in
  any form or style of their choosing, permitting
  audit verification requirements and information
  can be met within a reasonable timeframe.
• USDA should publish standardized audit
  verification forms that may be used by operators
  as a supplement to their other records.
  
• USDA should model the COOL record keeping system
  after programs currently employed by USDA, as
  cited in the law.

8
Violations of COOL

• The law is enforceable against retailers only if
  they knowingly and willfully violate the law.
  
• The Secretary is required to provide the retailer
  with notice of violation,
  
• The retailer will have 30-days to correct the
  violation,
  
• If after 30-days the retailer has not remedied
  the problem, a fine of up to 10,000 may be
  issued.

9
MYTHS about COOL

• The industry supports delaying implementation.
• Longer implementation delays are necessary to
  study, understand and make the law workable.
  
• The industry supports repealing mandatory
  COOL.
  
• Voluntary COOL would work best.
• Consumers dont care about COOL.

10
MORE MYTHS...

• COOL violates international trade agreements.
• COOL will raise costs to ranchers.
• COOL will cause a disadvantage between covered
  commodities and commodities not included.
  
• Penalties for mislabeling will be placed upon the
  producer.
  
• Third-party documentation and verification are
  required to be in compliance.
  

11
COOL Benefits

• Allows U.S. consumers to choose between U.S. food
  and foreign-produced food.
  
• Provides U.S. producers with the opportunity
  promote and market their products.
  
• Provides U.S. producers the opportunity to
  receive economic benefits for meeting some of the
  highest health and environmental standards.

12
COOL Success

• Secretary Johanns has the ultimate responsibility
  to ensure mandatory COOL is successful.
  
• National Farmers Union stands ready to assist the
  Secretary to ensure mandatory COOL is
  low-burdensome, cost-efficient and successful.

13

• For more information, contact NFU at www.nfu.org
  
  
• or
• 202-554-1600