Transcript An Overview of Mandatory COOL (Country of Origin Labeling) Derrell S. Peel Livestock Marketing Specialist Oklahoma State University.

An Overview of
Mandatory COOL
(Country of Origin Labeling)
Derrell S. Peel
Livestock Marketing Specialist
Oklahoma State University
Brief History of COOL
• Became law in the Farm Security and Rural Investment Act (2002 Farm
Bill) (PL 107-171)
– Amended Ag Marketing Act of 1946
• FY 2004 Consolidated Appropriations Act (PL 108-199) delayed
implementation of COOL until September 2006 for all covered
commodities except fish and seafood.
• Mandatory COOL for fish and seafood implemented April, 2005.
• The Agriculture, Rural Development, Food and Drug Administration and
Related Agencies Appropriations Act of 2006 (PL 109-97) further delayed
implementation of mandatory COOL for covered commodities except fish
and seafood until September 30, 2008.
• The Food, Conservation and Energy Act (2008 Farm Bill) modified COOL
law.
• August 1, 2008: USDA published Interim Final Rule for implementation on
September 30, 2008
Consumer Notification
Required at Retail
• Country or countries of origin
• Label or notice must:
– Be in English and legible
– Not obscure other required information
• Administered by USDA Agricultural Marketing Service
(AMS)
• Must be consistent with other applicable federal
rules
– Food and Drug Administration (FDA): food labeling
– Food Safety Inspection Service (FSIS): meat labeling
– U.S. Customs and Border Protection (CBP): labeling imported products
Commodities Subject to COOL
• Muscle cuts of beef, lamb, chicken, goat and
pork
• Ground beef, lamb, chicken, goat and pork
• Wild & farm-raised fish & shellfish
• Fresh & frozen fruits & vegetables
• Raw peanuts, pecans & macadamia nuts
• Ginseng
Businesses Subject to COOL
• Retailers of covered commodities as defined
by the Perishable Agricultural Commodities
Act (PACA) of 1930.
– Excludes small retailers (<$230,000/year invoice
cost of perishable agricultural commodities)
• Suppliers of covered commodities must
provide origin information to buyers
Exemptions to COOL
• Food Service Establishments
– Restaurants, food stands, taverns, etc.
– Delicatessens, salad bars, lunchrooms etc. inside
retail establishments
• Processed foods
– Products changed in character by cooking, drying,
curing, smoking, etc.
– Products combined with another covered
commodity or substantive food item.
Implementation Timeline
• Mandatory final rules by September 30, 2008
• 6 month grace period for full compliance
• Retailers urged to begin phasing in the
program immediately
– Product produced before September 30, 2008
exempted
COOL Meat Origin Categories
for Muscle Cuts
A
U.S. Origin
“Product of U.S.”
- Must be born, raised and slaughtered in the U.S.
B
Multiple Countries of Origin
“Product of U.S., Country X (and Country Y)”
- Meat from animals born, raised and/or
slaughtered in the U.S. and not imported for
immediate slaughter
C
Imported for Immediate Slaughter
“Product of Country X and U.S.”
Imported Meat
“Product of Country X”
- Labeled per CBP designation of origin
D
Retailer and Supplier Use of Meat
Origin Categories
• Retailers, packers and intermediary suppliers
may include Category A product in a Category
B label which includes all countries as
applicable
• Retailers, packers and intermediary suppliers
may commingle Category B and Category C
product in a single label as “Product of
Country X and U.S.”, with other countries as
applicable
Ground Meat Labeling
• Label must include all actual or reasonably
possible countries of origin, in any order
• Sources of raw material not in the processor’s
inventory for more than 60 days is not
“reasonably possible” and must be deleted
from the label.
Recordkeeping: Retailers and Suppliers
• Must be legible
• May be hard copy or electronic
• Various forms of documentation acceptable
– Records used in the normal course of business
• May be maintained in any location
• Must be made available to USDA
representatives within 5 days if requested
Recordkeeping: Retailers
• Records of origin, supplier and identify of
covered commodity must be maintained for
one year with appropriate combinations of
package labels, shipping container labels and
supporting documentation.
Record-Keeping: Suppliers
• Suppliers includes growers, distributors, handlers,
packers and processors
• Suppliers must make available information to the
subsequent purchaser about the country(ies) of
origin of the covered commodity.
• Suppliers must maintain records to establish and
identify the immediate previous source (if applicable)
and immediate subsequent recipient of a covered
commodity for a period of one year from the date of
the transaction.
Recordkeeping: Packers
• In the case of meat, packers are considered the
supplier responsible for originating the origin
declaration for meat.
• Packers must possess or have legal access to records
that are necessary to substantiate the claim.
• A producer affidavit is acceptable as evidence of
origin provided it is made by someone having firsthand knowledge of the origin of the animals and
identifies the animals unique to the transaction.
Affidavit Statements
• Developed by industry; examples available from organizations
1. Continuous affidavit/declaration.
– Allows producers to make a continuous origin affidavit, that would be
kept on file by the market, stocker, feeder or slaughter plant, until
revoked by the affidavit’s signer.
2. Supporting declaration for specific transactions
– For use with a continuous affidavit on file, or as a “stand alone”
affidavit/declaration related to a specific transaction. This language
could be used on check-in sheets, invoices and/or other sales
documents.
3. For sales to packers
– Statement says the livestock supplier will maintain those records for
one year from date of delivery of the livestock, and will make them
available, as required by the COOL law.
Recordkeeping: Producers
• Congress limited record-keeping requirements to
documents used “in the normal conduct of business”
• Animals born or imported before July 15, 2008 are
considered in as U.S. origin
• Animals identified under NAIS or official animal
identification program need no additional
verification of origin
Cow-Calf Implications
• Be prepared to supply affidavits for animals sold
– Record of buyer and/or sale date and location
• Need records to document normal course of business
– Herd and calving records
– Vaccinations and vaccine purchases
– Feed purchases
• Important to document herd size and composition as
of July 15, 2008
– Producers may be selling, for several years, brood animals
that were grandfathered in on this date
• Maintain records on raised cows and bulls
• Request affidavits on purchased cows and bulls
Stocker/Feeder Implications
• Request affidavits for purchased animals
– Record of seller and/or sale date and location
• Provide affidavits for sales groups
– Record of buyer and/or sale date and location
• Commingled and resorted animals (with same origin)
may be sold under a “consolidated” affidavit
• Animals need not be individually tracked as long as records
document a balance between total purchases and sales
• Imported and domestic animals best segregated, with
supporting records unless individual animal ID is used
Enforcement
• Legislative authority for enforcement given to
the USDA Secretary; encouraged to partner
with states with enforcement infrastructure
• 30 day period for retailers and suppliers to
take necessary corrective action
• Civil penalty up to $1000 if no good-faith
effort to comply, but only after notice and
opportunity for hearing
U.S. Beef Industry Summary
2007
All Cattle and Calves, Jan 1, 2008
96.67 Million Head
Calf Crop
37.36 Million Head
Steer and Heifer Slaughter (FI)
27.49 Million Head
Cow and Bull Slaughter (FI)
6.23 Million Head
Cattle Imports, Total
Canada
Mexico
2.49 Million Head
1.40 Million Head
1.09 Million Head
Beef Production (FI)
26.07 Billion Pounds
Beef Imports
3.05 Billion Pounds
Beef Exports
1.82 Billion Pounds