COOL is a Hot Problem
Country of Origin Labeling (COOL) is to be put into practice in the United States by October 1, 2008. This is likely to have major negative ramifications for the Canadian cattle and hog industries. In 2006 the US was the destination for over 14 million Canadian hogs in either live or meat form. The fact that the purpose of Country of Origin Labeling is to deter or reduce Canadian imports, helps to focus attention on the importance and threat of this legislation. Essentially, under the original version of COOL that was proposed in 2002, the law required that all fresh pork and beef sold at retail in the US be labeled as to the country of its origin. For a product to be labeled as product of the United States, it would need to be produced from an animal that was born, raised and processed in the United States. All other permutations and combinations would need to be put on the label. For example, if a pork chop came from a hog that was born in Canada, but finished and killed in the US, the label would need to say: born in Canada, raised and processed in the United States. Needless to say this would involve multiple labels, which will increase costs through the chain. COOL was passed as part of the 2002 Farm Bill. Significant battles since that time have delayed the implementation of COOL for livestock and meat twice. The current effective date for implementation is October 2008. In 2003 and 2004, when COOL first raised its head, the George Morris Centre did a great deal of research on behalf of hog industry organizations, like Manitoba Pork, regarding the impacts of the legislation. The bottom line of the research was that US packers would need to segregate, sort, control and account for Canadian livestock that they purchase. They would also need to segregate and label the meat from these animals separately from other meats. The George Morris Centre research concluded that COOL is nothing less than a non-tariff barrier to trade. COOL would impede livestock imports. That, of course, is exactly what its proponents, mostly US cattle producers, intended when they pushed for the legislation. Canadian livestock producers are not alone in facing negative consequences resulting from COOL. US cattle feeders, hog finishers, packers and retailers will all be worse off as a result of COOL. Not only will they face higher, non-productive costs, but also they depend on Canadian livestock for their packing plants, feedlots and finishing barns. The latest version of COOL is far from perfect. The bottom line is that COOL remains a source of uncertainty and risk for Canadian hog producers at a time of mounting uncertainty and risk in most other areas of their businesses.









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