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Dow Jones – Thursday – June 14, 2007 – 4:50 p.m. EDT

American Meat Institute Advises Packers To Require Origin Proof 

KANSAS CITY (Dow Jones)--The American Meat Institute is advising its packer members to begin requiring proof of origin for the livestock they buy for slaughter and further processing, according to a copy of the letter obtained by Dow Jones Newswires.

Mandatory country-of-origin labeling is not in effect yet, but is scheduled to take effect in September 2008. Calves being born now will be affected by the law because they will be ready for slaughter about then.

The requirements for proof of origin will mean that farmers and ranchers selling cattle and hogs to packers for slaughter will have to begin providing proof that they were born and raised entirely within the U.S. and to indemnify the packer for any liability that results from inaccurate information provided to the packer, the letter said. Under the advised rules, a producer also must allow a packer to have access to records so it can verify the country of origin and that the records are being verified by an acceptable third party. An affidavit at the time of sale will not be enough.

Some source-verified marketing programs already are in place for domestic and export customers, but the vast majority of livestock slaughtered in the U.S. has no such process in place.

Joe Schuele, director of trade media for the National Cattlemen's Beef Association, said, for instance, that about 90% of the U.S.'s imported beef ends up in food service products, which aren't covered by the COOL law.

Janet Riley, senior vice president of public affairs and professional development of the AMI, said the advisory was the result of a letter from the Food Marketing Institute and was sent to nearly 100 groups like the NCBA, National Pork Producers Council, R-CALF United Stockgrowers of America and the American Farm Bureau Federation. The associations were contacted as a courtesy because they generally assist members in these matters, she said.

The NCBA "found the correspondence (from AMI) to be a bit heavy-handed, but we have warned for some time that there are costs and problems with this law," Schuele said. "This is the first sign of these costs coming to the surface."

That being said, "the NCBA will work to minimize any costs to producers associated with the COOL law," Shuele said. "But people need to realize there are problems associated with the law, and our ability may be limited."

NCBA members have adopted policy supporting a voluntary COOL program and not a mandatory one. The law passed with the 2002 Farm Bill but never implemented because of financing roadblocks thrown up by congressional opponents calls for a mandatory labeling program.

But part of the objections to such a mandatory system were the proposed rules published in the Oct. 30, 2003, Federal Register. These rules called for extensive record-keeping by domestic producers of beef, pork, lamb and seafood producers, but not for chicken, which was left out.

Proponents of a mandatory COOL program decried the rules as too expensive and onerous for producers. They say marking all livestock imports and assuming everything else is domestic would make more sense, but USDA officials maintain this would not prove U.S.-origin. It would only assume it.

AMI's letter referred to a proposed rule published Oct. 30, 2003, in the Federal Register as its guidance for its advisory to packer buyers.

David Warner, spokesman for the NPPC, said the proposed rule from 2003 was "no good anymore, but it's all they (AMI) have."

Warner said cattle producers would be more involved right now. Hog producers would have to start worrying around January since pigs born then would be ready for slaughter late in the third quarter, he said.

Warner said the NPPC isn't in favor of any COOL program but would help producers with any verification program they wanted to participate in. R-CALF USA has long supported a mandatory COOL program, saying consumers deserve to be able to tell where their meat is being produced.

After the AMI letter was delivered, R-CALF USD CEO Bill Bullard issued his own statement and fired a letter back to the AMI saying that R-CALF USA would file formal complaints with the Grain Inspection Packers and Stockyards Administration against the AMI and any meatpacker that follows the AMI recommended records demands.

Bullard called the demands on cattle producers "false, misleading, deceitful and otherwise not in accordance with the law." The proposed rule is not in force and has no effect, he said.

 -By Lester Aldrich; Dow Jones Newswires; 913-322-5179; lester.aldrich@dowjones.com

(END) Dow Jones Newswires

June 14, 2007 16:50 ET (20:50 GMT)

 

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