Tim Petry

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Tim Petry NDSU Extension Service
Updated 01/27/05
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NDSU Extension Service COOL Website
http//www.ag.ndsu.nodak.edu/aginfo/lsmkt/COOL/coo
l.htm
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What is Mandatory COOL?

• Title X of the 2002 Farm Bill Amends the
  Agricultural Marketing Act of 1946
• a Retailer of a Covered Commodity Shall Inform
  Consumers, at the Final Point of Sale of the
  Covered Commodity to Consumers of the Country Of
  Origin Of the Covered Commodity

Source Wendy Umberger, Colorado State University
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Provisions of the Law

• Key Components
• 284(b) Directs USDA to publish regulations by
  September 30, 2004
• 285 Applies to retail sales beginning September
  30, 2004
• 283 Provides USDA with enforcement authority
• 282(f) Precludes USDA from using a mandatory
  identification system to verify country of origin

Marketing and Regulatory Programs
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Which Commodities are Covered?

• Muscle Cuts Of Beef, Pork, Lamb
• Ground Beef, Pork, Lamb
• Farm-Raised Wild Fish
• Peanuts
• Perishable Ag Commodities
• Fresh Frozen Fruits Vegetables

Source Wendy Umberger, Colorado State University
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What Is NOT Covered?

• Mutton, Goat, Bison, Poultry, Dairy
• Ingredients in processed food products
• Food service establishments
• Retailers with less than 230,000/year in sales
• (Over 50 of all meat consumed is exempt.)
• (Over 90 of all imported meat is exempt.)

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Farm Commodity Fair Labeling Act of 2003

• HR 2270
• Introduced on 05/22/03 by Rep. M. Thornberry
  (R-TX)
• Would include goat meat and poultry meat in COOL
• Referred to House Subcommittee on Livestock and
  Horticulture on 06/03/03

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CONTROVERSY

• USDA The most effective way to ensure
  credibility of COOL is to maintain a verifiable
  recordkeeping audit trail.
• Proponents Only necessary to keep records on
  livestock and meat imports, and the rest is US
  produced by default.
• Meat industry Livestock producers must provide
  3rd party documentation proving where animals
  were born and raised.

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The Controversy Necessary Records and
Verification

• Retailers must maintain records for 2 years
• Suppliers must provide information about country
  of origin
• Producers, handlers, processors, packers,
  importers
• Verifiable (auditable) records to ensure
  credibility
• Information must flow through market chain
• Self-Certification is not sufficient
• Willful violation results in up to 10,000 fine

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What Are the Costs?

• Cost of Preserving the Identity of Animal
  (Covered Commodity)
• Cost of Labeling the Products
• Compliance Costs
• Unexpected Industry Costs

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Cost Estimates
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Will COOL Increase Demand?
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North Dakota Has COOL Law

• Fresh beef, lamb, and pork
• Imported meats labeled before delivery to
  retailer
• Meat from U.S. packing plants is U.S.
• ND Dept. of Health inspects retailers
• ND Dept. of Ag inspects meats processors

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Politics

• Cow-calf sector is generally supportive except
  for mandatory ID and 3rd party verification
• R-Calf
• NCBA was the original proponent (1997 policy)
• FU and NFB
• Stocker and feedlot sector less supportive
• Swine industry opposed
• Meat industry opposed
• President, USDA, and Republicans from non
  cow-calf states opposed

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Peterson Amendment(COOL Lite)

• Deletes prohibiting USDA from instituting
  mandatory ID
• Producers will certify country of origin with
  existing records
• Lower the retailers first offense penalty from
  10,000 to 100
• Was referred to the House Committee on
  Agriculture (9/11/03)

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Recent Developments

• 11/19/04 Efforts to amend the FY2005 Omnibus
  Appropriations Bill to replace mandatory COOL
  with voluntary COOL failed in Congress
• 9/30/04 Mandatory COOL for fish took effect,
  but enforcement was delayed until April 4, 2005
• 6/15/04 Sen. Goodlatte (R-VA), Senate Ag
  Committee Chair, and 31 co-sponsors introduced
  HR4576 to establish voluntary COOL
• 01/23/04 President Bush signed PL108-99 which
  delays COOL, except for fish, until September
  2006.

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U.S. Livestock ID

• Mandatory livestock ID may be inevitable
• A joint industry-state-federal team has developed
  a 74 page US Animal ID Plan
• www.usaip.info
• For homeland security, not COOL
• Who will pay? Taxpayers or producers

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What should producers do?

• ID?
• Cool?
• NDSU Extension will keep you informed.

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• DIS CUSS ION