Spam, Still Mystery Meat, Escapes Food-Label Rules (Update2)
By Alan Bjerga and Tony C. Dreibus
Sept. 30 (Bloomberg) --
U.S. rules requiring meat and fresh produce to be labeled by national origin are falling short of lawmakers' aims, leaving shoppers in the dark about where mixed vegetables, steaks and Spam come from, some lawmakers say.
Six years after being adopted by Congress, country-of- origin labeling takes effect today. Concern about unsafe imports from China and Canada helped overcome food industry efforts to delay the measures. They will cost companies $2.5 billion in the first year, with retailers spending more to market beef, pork and lamb, the U.S. Department of Agriculture says. Industry groups say expenses will be even higher.
Some lawmakers and consumer advocates say loopholes will let meatpackers blur the distinction between foreign and domestic meat. Mixed vegetables are exempt from the requirements, as are processed foods ranging from roasted peanuts to Spam, the canned luncheon meat made by Hormel Foods Corp. More regulations may be needed, the lawmakers say.
``USDA may be trying to dodge congressional intent,'' said Representative Rosa DeLauro of Connecticut, the Democrat who heads the House subcommittee that oversees the department's funding. Last week 31 senators, including Democratic presidential candidate Barack Obama, wrote Agriculture Secretary Ed Schafer calling for more restrictive meat-labeling rules.
Too Early for Changes?
It's too early to consider changes to the new rules, according to Mark Dopp, a lobbyist for the American Meat Institute, whose members include Tyson Foods Inc. and Kraft Foods Inc. ``We don't know how the markets will react; we don't know how the consumers will react,'' Dopp said.
The USDA, which today ended the public comment period on the rules, will continue to seek feedback from shoppers and companies and may consider making changes to the program later this year, Bruce Knight, the department's undersecretary for marketing, said on a conference call with reporters.
Country-of-origin labeling, or COOL, is a longtime goal of U.S. farmers and ranchers convinced that identifying imported food may encourage manufacturers to use more U.S. product. On Sept. 24, Smithfield Foods Inc. said it will slaughter only domestic pigs at its U.S. plants, partly because of the new program.
Favored by Consumers
Consumers also favor the changes, according to a survey conducted last year by Utica, New York-based Zogby International. Ninety percent said they think the labels will help them make safer food choices. Only 5 percent opposed the new rules.
Some companies have started providing information voluntarily. More than 50 percent of fruit and vegetable products already carry origin labels, according to the United Fresh Produce Association in Washington. Austin, Minnesota- based Hormel declined to comment on how it may label Spam, which the USDA said is exempt from COOL.
Meat companies have opposed COOL, saying it will result in additional expenses for labor, labels and changes to facilities needed to separate foreign and domestic products. They also argue that the government already inspects imported food.
``COOL is a bad thing for the livestock industry,'' said Ron Plain, an agricultural economist at the University of Missouri in Columbia. Meatpacking plants will pay ranchers less to make up for their own added costs, he said.
Delayed Implementation
Responding to such concerns, Congress pushed back implementation in 2004 and again in 2006, except for fish and shellfish, which came under the rules in 2005. Efforts to put COOL into effect finally succeeded after food scares involving some products from China and beef from Canada made it a safety issue.
The 2008 farm bill passed in June revived COOL, adding chicken, ginseng and more nuts to covered products including red meat and fresh produce. The USDA regulations implementing the law are upsetting many of COOL's longtime supporters.
Under the plan, steaks and other meat cuts may be labeled with multiple countries of origin. That practice was only intended for ground beef or animals raised in more than one country, said Senator Jon Tester, a Montana Democrat who once ran a butcher shop.
USDA `Disingenuous'
Putting U.S. beef under a multiple-country label defeats the marketing goals of COOL's supporters, Tom Buis, president of the National Farmers Union, the second-largest U.S. farmer group, said today in an interview. He said meatpackers may have influenced the USDA to undercut agreements between farmers and companies that got the labeling into the farm bill.
``
It's disingenuous what USDA did,'' he said. ``If we need legislative changes to stop this, we will win in Congress. We have the votes.''
Representative DeLauro said she's concerned about exemptions for butchers, fish markets and small retailers. She also questions why separate bags of peas and carrots must be labeled by origin, while the same foods mixed in one bag don't need to be.
``This does not make sense,'' DeLauro said.
USDA guidelines exempting mixtures and processed foods are based on past legislation and the fish and shellfish label requirements, said Lloyd Day, who heads the USDA agency that made the rule.
Consumers may not notice much difference immediately. The USDA is giving retailers and manufacturers six months before enforcing the rules, allowing them time to sell old inventory and adjust their systems. After that, businesses may be fined $1,000 per violation.
To contact the reporters on this story: Alan Bjerga in Washington at
[email protected]; Tony C. Dreibus in Chicago at
[email protected].
Last Updated: September 30, 2008 14:02 EDT
