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Country-of-origin labeling diverts billions from Canada, study says
Story Date: 1/16/2013
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Source: Michael Fielding, MEATINGPLACE, 1/15/13
Mandatory country of origin labeling (MCOOL) has had a major impact – about US $1.9 billion worth – on Canada’s pork sector, according to a new report released by the Canadian Pork Council.
MCOOL has required grocery chains to provide sourcing information for fresh beef, pork, lamb, chicken, goat and other food products since March 2009.
According to thereport, the losses could continue to rise to nearly US$2 billion.
“As was arguably the intent of the law’s architects, the complicated rules for labeling, and the exclusion of Canadian-born livestock from the ‘Product of USA’ label have massively reduced live swine exports from Canada to the U.S.,” the council states in the report. “The largest damages were for slaughter hogs, which suffered the most severe restrictions from MCOOL. MCOOL has resulted in 10.4 million head fewer slaughter hog exports.”
The Canadian report is timely, particularly in light of a recent study conducted by the Kansas State University Department of Agricultural Economics indicating that MCOOL requirements provide no economic benefit when it comes to the sale of meat products.
The study indicates a general lack of enthusiasm and low consumer knowledge about MCOOL. Specifics on the KSU study of the impact of MCOOL on consumers are available here.
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