Uncertainty swirls around the mandatory country-of-origin labelling (COOL) law in the United States as red meat producers work through costs and requirements in time for the law’s implementation Sept. 30.
“There is going to be a cost incurred by Canadian livestock producers and it is going to start at the feedlot level … and it will force it back up the chain to the cow-calf guy,” said Rick Paskal, president of the National Cattle Feeders Association.
“It is not just a cost to Canadian producers but a cost to American producers” because both must provide documentation on the origin of their livestock.
Read Also
Going beyond “Resistant” on crop seed labels
Variety resistance is getting more specific on crop disease pathogens, but that information must be conveyed in a way that actually helps producers make rotation decisions.
Paskal said American interest in Canadian cattle does not appear to have slowed, but contracts have a wide basis.
“The basis is reflective of the uncertainty that is out there relative to COOL,” he said.
“From my discussions with some of these American plants, they think there is going to be a grace period on the implementation time to bring it up to full standard. The logistics are quite intense.”
John Masswohl of the Canadian Cattlemen’s Association said the interim rule that was released for public comment July 28 may not be in full effect until next summer because a new presidential administration could require further changes, depending on new government priorities.
“There is no guarantee they are going to want to have all the provisions the same way this administration wanted them,” Masswohl said.
The rule is included in the 2008 U.S. farm bill, which passed earlier this year after numerous presidential vetoes.
Exporting nations are now examining the rule and preparing a possible trade challenge.
The five nations beef alliance, which includes Canada, the U.S., Mexico, New Zealand and Australia, discussed the issue at its most recent meeting in May.
“We were all going to be encouraging our governments to challenge this through the WTO,” Masswohl said.
The U.S. Packers and Stockyards Act allows areas of price differentiation, but says discounts should not be aplied according to country of origin. This could be challenged under the act or under international trade law.
“That is one of the options that could be pursued,” Masswohl said.
The Canadian government is responsible for initiating a trade challenge, but has not committed to such a course.
The CCA is demanding a challenge under the World Trade Organization or North American Free Trade Agreement.
“It is not a question of should it be challenged, but how do you build the case?”
In the meantime, producers must be prepared to follow the law.
“People are going to have to bear it and deal with it. It is a fact of life we have to market cattle to the States.”
Masswohl said label wording is one area of concern. to U.S. regulators.
“Where we are disappointed is that there is still a differentiation between cattle that are fed in the U.S. versus cattle that are fed in Canada and then exported to the U.S. for slaughter.”
If they are born in Canada and fed in the U.S., the beef is labelled product of U.S. and Canada. If they are fed in Canada and slaughtered in the U.S., the label would read product of Canada and the U.S. This makes a distinction between cattle imported for slaughter and those fed in the U.S. and then slaughtered.
