USDA Report on Economic Benefits of COOL

Cindy ZimmermanBeef, COOL, Pork, Poultry, usda

cool-usdaUSDA has delivered a required report on Country of Origin Labeling (COOL) to Congress that shows little to no economic benefit from the law.

According to the report, the economic benefits of implementing the COOL regulations would be “insufficient to offset the costs of the requirements whether analyzing the impacts through economic models of beef, pork, and poultry industries or of the U.S. economy as a whole.”

In terms of consumers, USDA’s regulatory impact analyses concluded that while there is evidence of consumer interest in COOL information, measurable economic benefits from mandatory COOL would be small. USDA’s regulatory impact analyses also found little evidence that consumers would be likely to increase their purchases of food items bearing U.S.-origin labels.

The report determined the cost of implementing the law to producers, packers, and retailers, at “$1.3 billion for beef, $300 million for pork, $183 million for chicken, and $2.6 billion for all covered commodities (beef, pork, chicken, lamb, goat, fish, fruits, vegetables, ginseng, peanuts, pecans, and macadamia nuts).”

At the same time, the report concluded that there is “substantial interest” in COOL among consumers. “A consumer’s right to know benefits those consumers who desire COOL information,” according to the report.

A final decision from the World Trade Organization on the rule is expected by May 18th. If the ruling goes against the United States again, it sets up potential retaliation by Canada and Mexico.