By Marcia Brown, Politico Pro
Meatpackers will no longer be able to label their products “Product of U.S.A.” or affix an American flag on the packaging unless the animal was born, raised, slaughtered and processed in the U.S. under a new rule the Agriculture Department finalized Monday.
“In order for there to be fairness and honesty and proper representation in the marketplace, it’s important to have rules like this,” said Agriculture Secretary Tom Vilsack in remarks to the National Farmers Union conference in Arizona Monday.
Under previous regulations, meat and poultry companies could use the USA label for meat that was born, raised and slaughtered in another country but packaged in the U.S. Farmers and ranchers have long railed against what they see as a loophole that allows large meatpacking conglomerates to benefit from the higher prices consumers are willing to pay for American meat products while raising livestock for cheap in other countries.
“The abuse of the ‘Product of U.S.A.’ label stripped America’s cattle producers of a vital opportunity to market their USA beef while denying consumers the opportunity to support them,” said Joe Maxwell, Farm Action co-founder, which lobbied hard for the regulatory change, in a statement. “This is a huge win for America’s farmers, ranchers, and consumers.”
Supporters also say the regulation will help stop big food companies from deceiving consumers.
“No longer will multinational meatpackers be allowed to trick consumers into believing that foreign beef was produced by United States cattle farmers and ranchers,” said Bill Bullard, CEO of R-CALF USA, a group representing independent ranchers.
Context: Monday’s announcement comes as the Biden administration is cranking up its efforts to finalize key agenda items aimed at improving competition and fairness in the food and agriculture sector before a possible change in administration. USDA earlier this month finalized a second rule strengthening the Packers and Stockyards Act, an agricultural competition law. Additional rules to strengthen that law are forthcoming. For its next action, USDA is expected to propose a rule specifically geared toward benefiting contract poultry farmers that grow birds for large corporations, Vilsack said in Monday’s remarks.
“The next rule that will likely be proposed is a proposed rule involving the poultry tournament system,” said Vilsack. “We expect and anticipate this year as well to roll out a proposed competition rule as well as potentially a price discovery cattle rule as well.”
Details: The regulatory changes apply to meat, poultry and egg products and are intended to comply with a ruling from the World Trade Organization, which previously rejected mandatory country of origin labeling , forcing the U.S. to reverse its policy. Critics, such as R-CALF, have said that USDA’s voluntary rule won’t do enough to ensure American farmers and ranchers earn the premium they say “Product of U.S.A.” should command and some lawmakers are proposing legislation that would impose mandatory country of origin labeling.
The White House completed its review of the regulation last week. Vilsack had previously announced the proposed labeling rule at the National Farmers Union conference last spring, after President Joe Biden prompted USDA to redesign labeling regulations to support farmers’ bottom lines, promote competition and address consumer transparency concerns.
As part of USDA’s work on the rule, the department surveyed consumers to determine how “Product of U.S.A.” was interpreted at the grocery store. According to the survey results, most consumers noticed the label but just 16 percent understood that the current regulations allowed, for example, a steak to be from an animal born, raised and slaughtered in Mexico, processed in the U.S. and labeled “Product of U.S.A.”