USDA has issued the final rule for mandatory Country of Origin Labeling (COOL) of beef, pork, lamb, chicken, goat meat, wild and farm-raised fish and shellfish, perishable agricultural commodities, peanuts, pecans, ginseng and macadamia nuts.

The latest rule amends the regulations for muscle cut covered commodities derived from animals slaughtered in the United States. Labels will be required to specify the production steps of birth, raising and slaughter of the animal from which the meat is derived. In addition, the rule eliminates the allowance for commingling of muscle cuts from different origins. The cost of implementing the requirements will be incurred by the primary packers and processors of the meat and retailers subject to COOL requirements.

USDA estimates 7,181 firms will need to augment labels to meet the requirement. Estimated cost for the loss of commingling flexibility at the packer/processor level is $7.16 per head of cattle and $1.79 per head of hogs. At the retail level it is estimated to cost 5 cents per pound of beef and 4.5 cents per pound of pork.

U.S. Ag Secretary Tom Vilsack says the changes “will improve the overall operation of the program and also bring the mandatory COOL requirements into compliance with U.S. international trade obligations.”

The Appellate Body of the World Trade Organization ruled last June that the U.S. COOL requirements for certain meat products discriminated against Canadian and Mexican livestock imports and were therefore in violation of WTO rules. The U.S. had until May 23rd to come into compliance. The new rules will be published in the Federal Register on Friday.

National Cattlemen’s Beef Association President Scott George issued a statement expressing disappointment with the rule saying it will not bring the U.S. into compliance with the WTO. George fears that will lead to “increased discrimination against imported products and in turn retaliatory tariffs or other authorized trade sanctions.” He adds “any retaliation against U.S. beef would be devastating for our producers.’

National Farmers Union president Roger Johnson praised the rule saying; “Legal analysis has found that this will satisfy WTO’s requirements.” Johnson says “We further applaud the administration for deciding to take a proactive approach in bringing COOL into compliance by providing more information on the origins of our food, instead of simply watering down the process.”

A copy of the rule is available here:

The full NCBA statement follows:

WASHINGTON (May 23, 2013) – The following is a statement from National Cattlemen’s Beef Association (NCBA) President Scott George, a Cody, Wyo. dairy and cattle producer, regarding today’s announcement that the U.S. Department of Agriculture (USDA) issued a final rule regarding the Mandatory Country of Origin Labeling Rule (MCOOL).

“We are deeply disappointed with this short-sighted action by the USDA. Our largest trading partners have already said that these provisions will not bring the United States into compliance with our WTO obligations and will result in increased discrimination against imported products and in turn retaliatory tariffs or other authorized trade sanctions. As we said in comments submitted to USDA, ‘any retaliation against U.S. beef would be devastating for our producers.’ While trying to make an untenable mandate fit with our international trade obligations, USDA chose to set up U.S. cattle producers for financial losses. Moreover, this rule will place a greater record-keeping burden on producers, feeders and processors through the born, raised and harvested label.”

“As cattlemen and women, we do not oppose voluntary labeling as a marketing tool to distinguish product and add value. However, USDA is not the entity that we want marketing beef, and on its face, a label that says ‘harvested’ is unappealing to both consumers and cattle producers.”

NFU statement follows:

WASHINGTON (May 23, 2013) – The United States Department of Agriculture (USDA) issued a final rule governing Country-of-Origin Labeling (COOL) to meet compliance requirements set forth by a recent World Trade Organization (WTO) ruling. National Farmers Union (NFU) President Roger Johnson issued a statement following the decision:

“We are very pleased that the USDA has decided to stand strong and keep COOL. The decision to bring the law into compliance with the WTO’s ruling is a win-win situation for all interested parties.

“We further applaud the administration for deciding to take a proactive approach in bringing COOL into compliance by providing more information on the origins of our food, instead of simply watering down the process.

“NFU has been a long time supporter of COOL and we will continue to vigorously support it. Consumers want and have the right to know where their food comes from.”

USDA’s final rule will require labels for certain foods, particularly muscle cuts of meat, to include the countries in which the animal was born, raised and slaughtered. Legal analysis has found that this will satisfy WTO’s requirements and meets the compliance deadline of May 23, 2013.