AMERICAN agricultural groups are once again agitating for country-of-origin labelling on beef. This time the emperor has new clothes.
Previously, border states drove the labeling issue, arguing that if Americans were informed of a choice, they’d buy American-grown meat. Country-of-origin labelling, as the name implies, would see imported product labelled as such.
Last January, the United States Department of Agriculture said such rules could harm farm trade and wouldn’t necessarily benefit American cattle producers. The issue went into limbo but it’s back, and it’s still bad news for the Canadian beef industry.
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The new drive for this legislation cloaks itself in consumer rights “to make informed decisions about the food they feed their families.”
That’s an admirable goal, although it ignores the fact that country-of-origin is not a burning issue for American consumers. Food safety is the primary concern, and country-of-origin labelling does nothing to improve that.
It also ignores the drive across North America to market beef by brand, based on quality, not geography. So labelling would run contrary to many food quality initiatives as well.
Knowing that, it’s difficult to view the country-of-origin labelling proposal as anything but a naked trade barrier.
Canadian beef exports account for two to three percent of all sales in the U.S. Eliminating Canadian beef from American stores wouldn’t create a windfall for U.S. cattle producers.
But with the U.S. receiving 73 percent of Canadian export beef, it’s a major difference for producers north of the 49th parallel.
Why might Canadian beef disappear from U.S. grocery stores? It comes down to segregation and shelf space.
Segregation is expensive and compliance is expensive to track. And shelf space in any store is limited. Grocers might easily choose to give all space to USDA grades rather than create a special spot for imported product.
The proposed country-of-origin labelling initiative is tied to the new U.S. farm bill, which is now making its tortuous way through the political process. It could take awhile.
It might emerge with new definitions of origin, or become a call for voluntary rather than mandatory labelling.
The Canadian industry will use the intervening time well. It is already developing more market opportunities in Mexico and Chile.
It has met with the major packers, who are generally against country-of-origin labelling, to develop strategies.
It is working with an international marketing service to create brand identification specific to Canadian beef.
It is exerting its influence in the definitions of origin – might a Canadian-born animal slaughtered in the U.S. be considered U.S. product? Maybe so.
A U.S. trade barrier clad in some other costume is no surprise. We can guard against it by dressing the Canadian industry in enough layers to protect it from the elements.
