COOL hard facts

The U.S. cattle industry is cool on the U.S. Department of Agriculture's mandatory country-of-origin labeling (COOL) regulation, which takes effect on March 16.

One of the biggest concerns is the potential market disruption to live cattle flows over COOL between the United States, Canada and Mexico. The U.S. beef export market to Mexico and Canada accounts for about $2 billion, or about 60 percent of the worldwide total for 2008. CattleFax estimates that it will cost cattle producers $50 to $60 per head if the U.S. cattle industry loses these NAFTA export markets.

In addition to the large volume of variety meats that we export to Mexico, rounds are a very popular item in that market. Rounds also make up a large portion of our exports to eastern Canada,Erin Daley, an economist with the U.S. Meat Export Federation, told attendees at the Cattle Industry Convention and Trade Show in Phoenix on Jan. 29. It would be very hard to absorb these products into the domestic market.   Daley also warned that the "mixed origin label required under COOL creates difficulties for U.S. beef exports because it is not accepted by any major trading partners.

Mixed origin meat simply can't be exported -- not even back to Canada, she said. We have enough hurdles and obstacles that already interrupt trade. Why create more now?

Cody Easterday, a cattle feeder from Pasco, Wash., said COOL is causing big problems for cattle producers in the U.S. Northwest, especially segregating requirements for cattle at the point of slaughter.

Sometimes our feedyard might be 30 to 40 percent Canadian cattle, but sometimes it's zero, he said. If packers have to set aside certain days for killing Canadian cattle, that kind of seasonality creates major problems.

Barry Carpenter, chief executive officer of the National Meat Association, said it's unclear whether the final rule will take effect as scheduled, or be delayed for further review and revision by the Obama administration. He doesn't believe there's any benefit to delaying the rule, despite the beef industry's concerns.

If comments on COOL are reopened, USDA is not going to hear anything new, he said. It's just going to be the same parties making the same arguments about the same issues.

Source: American Shipper