USDA Label Requirements Can Help Regulate Public Health, Food Safety, and Market Stability (Jared Moelaart & Marc Meltzer)
Statement of Purpose:
The purpose of this policy brief is to provide a comprehensive overview and analysis of Country of Origin Labeling (COOL) laws and regulations within the context of recent amendments made to the U.S. Farm Bill. COOL is a labeling law that demands retailers to notify customers with information regarding the original source of certain foods (USDA Agricultural Marketing Services, n.d.). This briefing begins with an introduction to COOL legislation and concludes with a discussion of why appropriate labeling is important for addressing economic, social, and environmental security on a global scale. Moreover, COOL also can serve as a literary tool for consumers to make more health-conscious decisions, while labeling requirements will address the issues of public health, food safety, and market stability.
Introduction to Country of Origin labeling (COOL):
Country of Origin Labeling (COOL) is a series of domestic laws that requires specific retailers to provide their customers with information regarding the geographical origin for certain foods - primarily including grocery vendors, supermarkets, and club-warehouse stores (USDA Agricultural Marketing Services, n.d). COOL laws and regulations are only applicable toward what the USDA defines as covered commodities, which include beef, veal, lamb, chicken, fish and shellfish, goat, pork, perishable agricultural commodities (fresh and frozen produce), macadamia nuts, pecans, peanuts, ginseng root, and foreign honey (Keller and Heckman LLP, 2014).
Wholesale food suppliers are required to provide retail establishments with country of origin information as well as specific methods of production for labelling purposes - which may appear on the product, shipping container, or separately attached document. The Customs and Border Protection (CBP) is responsible for enforcing all marking and labeling requirements, imposed by the Tariff Act of 1930. Meanwhile, the USDA’s Agricultural Marketing Service (AMS) is responsible for the implementation of COOL laws and regulations in the professional domain. (Keller and Heckman LLP, 2014).
Although COOL laws do not require a specific font or size, declarations must be clearly legible and placed in a conspicuous location upon the product or its container. Retailers may use placards, signs, labels, bands, twist-ties, and/or pin-ties to properly mark these agricultural commodities (USDA Agricultural Marketing Services, n.d.). State, regional, or local labeling descriptions can also be substituted in place of COOL for home-grown perishable agricultural commodities (Keller and Heckman LLP, 2014).
Furthermore, COOL laws require retailers to hold up-to-date records that comply with the law in the instance of a trial or audit - which will often result from a private complaint. According to the National Agricultural Law Center (NALC), any willful violations of COOL legislation may result in up to a $10,000.00 fine for a non-compliant vendor or retail establishment. Retailers must maintain current records up to one year after the point-of-sale to avoid penalty.
Amendments to COOL Legislation Under the 2018 U.S. Farm Bill:
The history of COOL legislation is comprised of numerous congressional adjustments and untimely delays. The Tariff Act of 1930 was the first piece of legislation that required any food of foreign origin imported into the United States to distinguish the article’s country of origin to the ultimate purchaser - the final person or establishment that receives the food product in the form of which it was imported (NALC, n.d).
Both the 2002 and 2008 U.S. Farm Bill amended the Agricultural Marketing Act of 1946 to require retailers to include country of origin information on food items and packages to address the health and safety of consumers. In 2002, AMS initially implemented voluntary COOL guidelines for beef, lamb, pork, fish, perishable agricultural commodities, and peanuts. In 2003, the AMS subsequently updated the COOL guidelines to ‘mandatory’ status with an expanded list of covered commodities. However, Congress delayed the application of these guidelines until 2006 (except for wild and farm-raised seafood) through the Consolidated Appropriations Act of 2004.
In 2005, the AMS published an interim-final rule on mandatory COOL guidelines for covered commodities. During the interim-period, the list of covered commodities was expanded to include chicken, goat, ginseng, pecans, and macadamia nuts (Keller and Heckman LLP, 2014). Yet, Congress delayed the implementation of this final ruling through the Related Agencies Appropriations Act of 2006 until 2008. When Congress re-enacted the 2008 U.S. Farm Bill, the AMS published an updated interim-final rule for a list of newly updated agricultural commodities once again. This rule took effect in 2011 and included the additional of honey food products that possess an official USDA marking in the list of expanded covered commodities. (Keller and Heckman LLP, 2014).
Nullification of COOL Requirements for Beef and Pork Muscle-Cuts, Ground Beef, and Ground Pork:
In June of 2012, the World Trade Organization (WTO) declared that U.S. COOL requirements for muscle-cut meat commodities (including beef and pork) were not consistent with U.S. obligations as part of Technical Barriers to Trade (TBT) - an international trade agreement that aims to ensure non-discriminatory procedures are mutually adopted in order to facilitate international trade. Furthermore, this ruling was in response to complaints filed by Mexico and Canada against the U.S., whom called for improving ‘transparency provisions.’ (WTO, n.d).
The court ruled against the U.S. and declared that COOL requirements at this time had “accorded less favorable treatment to imported cattle and hogs, and did not fulfill its legitimate objective of providing consumers with information on origin.” (NALC, n.d.). Moreover, COOL recordkeeping and verification requirements were strictly incentivizing domestic producers to manage and sell domestic livestock at the expense of foreign livestock suppliers and producers (Mexico and Canada) within the trade agreement.
In response, the AMS revised COOL regulations in 2013 to provide consumers with more accurate information regarding where animal-derived food products were born, raised, and harvested - an important distinction which incorporated methods of production onto the labels of these products (Keller and Heckman LLP, 2014). As a result, food suppliers are no longer obligated to provide COOL labeling on beef and pork muscle cuts and ground beef and pork, because these meat products were removed from the COOL regulations of covered commodities in 2015 (USDA Agricultural Marketing Services, 2016).
Above: Current COOL Requirements and Guidelines Released by the USDA (2013), Link: (https://www.ams.usda.gov/sites/default/files/media/LabelingOptions%5B1%5D.pdf)
Exemptions for Certain Retail Establishments and Processed Foods within COOL Requirements Give Leeway to Food Manufacturers:
There are certain food retailers and vendors that are exempt from COOL requirements. Any food service establishment that provides “ready-to-eat” foods - including hotels, restaurants, and farmers markets - are not subject to COOL requirements. In addition, any large retail business that does not purchase an annual aggregate or equivalent of $230,000 in fresh produce is not required to comply with COOL laws and regulations.
'Processed' foods also do not require COOL, which refer to any covered commodity that has undergone a significant degree of processing (e.g., grilling, frying, boiling, steaming, baking, roasting, curing, or smoking) and results in a change of state, character, or quality. As the ingredient lists of a food product becomes more compounded by processed additives, the AMS has decided not to identify multiple countries of origin on a single package or container.
Although certain retail establishments are exempt from COOL, the USDA and AMS must continue to investigate new ways to update marking and labelling policies to include more agricultural commodities so that consumers can easily identify the methods of production and sources of origin. This approach will build relationships and strengthen the collective trust between consumers, food suppliers, and governance.
Conclusion - The Effects of COOL Legislation on Public Health, Food Safety, and Market Stability:
The main purpose of COOL is to improve transparency in the supply chain of the global food system, as it instructs retailers to provide consumers with information regarding the origin of its foods. COOL is an important set of laws and regulations that provide information which can directly impact dietary choices related to the health-status of the average consumer. In other words, COOL guidelines and requirements are intended to provide consumers with greater ‘purchasing power,’ or the opportunity for individuals to make positive, healthy, and affirmative choices about personal dietary intake and general food product quality.
Without a comprehensive understanding of Country of Origin Labeling (COOL), it is difficult for consumers to navigate the geographical origins of agricultural commodities as well as the context in which they were produced. Also, COOL requirements help regulate international market stability by mandating fair and reciprocal trading practices between various countries, municipal groups, and trade unions. COOL practices not only help prevent deceptive food marketing, but also improve the overall security and transparency of the global food system. For example, food suppliers and farmers can benefit from labeling laws when there is a climatological outbreak of food-borne illness, which will allow them to directly identify the origin of a contaminated import (WORC, n.d.).
While contemporary COOL legislation consists of a long list of covered commodities, some advocates have found these labeling laws to be controversial due to the list of foods that are exempt from the program - including processed foods, beef and pork muscle-cuts, some ground beef & ground pork. Along with the exemptions registered with COOL guidelines furthermore, the USDA and AMS are also facing pressure to continue updating these labeling laws to help consumers assess the overall health risk and safety of consuming new food products. It is imperative that labeling practices mutually ensure benefits to food suppliers, farmers, and consumers built on a foundation of verification and trust and continue to be revised.
Lastly - If you suspect that a retail establishment may be in violation of COOL requirements under federal law, then you can file a formal complaint by emailing the following address: coolaudit@ams.usda.gov
Works Cited/Reference List
Flexport. (n.d.). Flexport Help Center Article: What Are Country of Origin Labeling Requirements? Retrieved from http://www.flexport.com/help/207-country-of-origin-labeling-requirements
Geranios, N. K. (2017, June 20). Cattle ranchers sue to return country-of-origin labeling. Retrieved from http://www.apnews.com/8008a4aab6bf4caeac0c4e56bf05b267
Grossman, E. (2017, April 26). Will Trump Revive COOL and Make American Meat Great Again? | Civil Eats. Retrieved September 23, 2019, from https://civileats.com/2017/04/06/will-trump-revive-cool-and-make-american-meat-great-again/
Keller and Heckman LLP. (2014, January 2). A BRIEF HISTORY AND OVERVIEW OF COUNTRY OF ORIGIN LABELING REQUIREMENTS. Retrieved from http://www.khlaw.com/A-BRIEF-HISTORY-AND-OVERVIEW-OF-COUNTRY-OF-ORIGIN-LABELING-REQUIREMENTS
National Agricultural Law Center (NALC). (n.d.). Country of Origin Labeling Overview. Retrieved from http://www.nationalaglawcenter.org/overview/cool/
Office of the Federal Register, National Archives and Records Administration. (2009, January 15). 74 FR 2657 - Mandatory Country of Origin Labeling of Beef, Pork, Lamb, Chicken, Goat Meat, Wild and Farm-Raised Fish and Shellfish, Perishable Agricultural Commodities, Peanuts, Pecans, Ginseng, and Macadamia Nuts. Retrieved from http://www.govinfo.gov/app/details/FR-2009-01-15/E9-600
Speer, N. (2019, September 17). Did COOL impact the price/demand relationship for beef? Retrieved from http://www.beefmagazine.com/beef-quality/did-cool-impact-pricedemand-relationship-beef
Starmer, E., & USDA Agricultural Marketing Service. (2016). Country of Origin Labeling Overview. Retrieved from www.ams.usda.gov/sites/default/files/media/COOL final rule federal register version.pdf
USDA Agricultural Marketing Services (AMS). (n.d.). Country of Origin Labeling (COOL). Retrieved from http://www.ams.usda.gov/rules-regulations/cool
USDA Agricultural Marketing Services (AMS). (n.d.). Questions and Answers. Retrieved from http://www.ams.usda.gov/rules-regulations/cool/questions-answers
USDA Agricultural Marketing Services (AMS). (2013, September 20). Country of Origin Labeling Overview. Retrieved from www.ams.usda.gov/sites/default/files/media/LabelingOptions[1].pdf.
USDA Agricultural Marketing Services (AMS). (2018, July 6). USDA Clarifies Obligations for Honey Packers Regarding Country of Origin Labeling. Retrieved from www.ams.usda.gov/content/usda-clarifies-obligations-honey-packers-regarding-country-origin-labeling
USDA Agricultural Marketing Services (AMS). (2016, February 29). USDA Amends Country of Origin Labeling Requirements, Final Rule Repeals Beef and Pork Requirements. Retrieved September 23, 2019, from https://www.ams.usda.gov/press-release/usda-amends-country-origin-labeling-requirements-final-rule-repeals-beef-and-pork
Western Organization of Resource Councils (WORC). (n.d.). Benefits of Country of Origin Labeling Greater Than Costs. Retrieved from http://www.highplainsnews.org/media/worc_news_articles/pr_coolbenefits.html
World Trade Organization (WTO). (n.d) Technical Barriers to Trade. Retrieved September 23rd, 2019 from https://www.wto.org/english/tratop_e/tbt_e/tbt_e.htm
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