Country of Origin Labeling

Country of Origin Labeling
Economics

Study's authors tell COOL proponents to keep research results in perspective, Rod Smith, Feedstuffs, 5/28/03 - The authors of a study that has been quoted widely as proof that consumers want and will pay for country-of-origin labeling (COOL) have said those interests making such a claim should cut it out.

The study, conducted by researchers at Colorado State University and the University of Nebraska, reported that consumers surveyed in the study said they favored COOL and were willing to pay premiums for meat products that were labeled as to their country of origin. COOL proponents, in e-mails sent to livestock producers, legislators and other people, said this was "overwhelming evidence" of the demand for COOL.

In a statement May 15, the authors said data in the study were extrapolated beyond the scope of the study.

Group says COOL 'absent of value;' economists refute dire claims about law, Rod Smith, Feedstuffs, 5/12/03 - "The Nebraska Pork Producers Assn. (NPPA) last week told a listening post called by the U.S. Agricultural Marketing Service (AMS) to enlist input from interested parties on the country-of-origin labeling law (COOL) that a mandatory country-of-origin label will be "absent of value" for the pork production chain and consumers and will increase costs of production for pork producers."

Country of Origin Labeling: A Legal and Economic Analysis, J. VanSickle, R. McEowen, N. Harl, R. Taylor and J. Connor, International Agricultural Trade and Policy Center, May 2003, PBTC 03-5

"Country of origin labeling is an important part of providing consumers with the information and choice that they desire. The reduction of food system risk and the preservation of consumer confidence in the food system are very important benefits. Every credible study has shown that consumers value this information and some studies show a significant willingness-to-pay to get this information. The combination of survey data and experimental auction data that is currently available lead us to the conclusion that the consumer willingness-to-pay for labeling amounts to billions of dollars across all covered commodities.

Conversely, the costs and complexity of labeling have been overblown, often to absurd levels. We disagree with the estimates of cost provided thus far by USDA and others. Our cost estimate of $69.86 million to $193.43 million is very minimal in comparison to the vast size of the food and agriculture economy. The benefits substantially outweigh the costs of labeling.

Lastly, the regulatory choice for implementation of the Labeling Legislation should be the Presumption of U.S. Origin Rule. This rule is the least intrusive option for private industry, and stands the best chance for passing legal muster. In our view, it is overwhelmingly the best choice in light of the significant drawbacks of the alternative regulatory schemes.”

Cool Cost Assessment, Sparks Companies, Inc., April 2003 - “As interested food industry participants, Sparks and CBW are concerned about the costs, impacts and potential unintended consequences that Country of Origin Labeling will have on the industries producing covered products. The analysis being submitted provides a detailed assessment of potential cost burdens that could occur based on our interpretation of the current voluntary guidelines as published by the USDA.”

ERS Analysis Country-of-Origin Labelings, USDA Economic Research Service, June 21, 2002 - A brief summary of the current requirements for covered commodities and brief considerations of the economic implications.