USDA Announces New Labeling Rules

This week, the USDA announced a new rule that would clarify labeling of food products. 

Under the proposed regulation, meat, poultry and egg products would qualify for a “Product of USA” or “Made in the USA” label if they are “derived from animals born, raised, slaughtered and processed in the United States”.

The label would continue to be voluntary, and does not need to be pre-verified. However, producers and processors would be required to retain documentation in case their claim was ever challenged. 

The new regulations close a loophole in the labeling system. Current policy allows a “Product of USA” label if the product passed through a USDA inspected processing plant regardless of where the animal was born or raised. New language allows for use of the label on packages containing meat from other countries but companies are required to list all the processing steps on the label. 

The USDA believes the new regulations will reduce consumer confusion, increase clarity on the origin of food products and match consumer expectations.

Canada and Mexico have long disputed any labeling program in the United States, arguing that labels put imported products at a competitive disadvantage. The National Farmers Union praised the proposed rule while the National Cattlemen’s Beef Association called the new language “deeply flawed” and that it fails to deliver “profitable solutions” for U.S. cattle producers. 

This is the first change to food labeling since 2013, when the WTO ruled the mandatory Country of Origin labels placed a disproportionate burden on meat producers and processors. Country of Origin labeling was originally introduced in the 2008 Farm Bill. 

The comment period is open for 60 days.

For Market to Market, I’m Peter Tubbs.