November 20, 2009



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Sticker shock at the grocery check-out line? Confused about product labeling? The Supermarket Guru is here to help. Each week, Phil Lempert offers tips to make you a wiser shopper. Check back every Friday for more, and find all of his past tips here.
Phil Lempert
Phil Lempert is one of America’s leading consumer trend-watchers and analysts. Visit his site at supermarketguru.com.
 

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Those New Labels on Food Products? They're COOL

Phil says: Since last spring, I've been receiving lots of e-mails from puzzled shoppers who have looked carefully at meat labels in their grocery stores and notice something odd: some packages of ground beef now have labels that say things like "Product of U.S.A., Mexico, and Canada."

The reason is simple: in March, Country of Origin Labeling (COOL) laws administered by the U.S. Department of Agriculture took effect. Currently, the rule covers:

  • muscle cuts and ground beef, lamb, chicken, goat, and pork
  • wild and farm-raised fish and shellfish
  • perishable agricultural commodities (specifically fresh and frozen fruits and vegetables)
  • macadamia nuts
  • pecans
  • ginseng
  • peanuts

All foods that fall under the COOL rule must be labeled at retail. Labels are not required on processed products, such as bacon, cured ham, lunchmeat, or those products that consist of more than one ingredient. In addition, meat products sold at restaurants do not require the label.

What's driving the new labeling concerns? Many U.S. shoppers, in the wake of headlines about food recalls and food-borne illnesses, simply want to know more about the food they buy and eat. Thus, people are reading food labels more carefully, and many are surprised to learn just how much of their food is imported from other countries.

There is some feeling that these rules do not yet fully satisfy consumer desire for more information about the origin of their food. Additional legislation that would require COOL labeling on dairy products—including milk, cheese, yogurt, ice cream, and butter—has recently been introduced in Congress by senators Al Franken (D-Minnesota), Russ Feingold (D-Wisconsin), and Sherrod Brown (D-Ohio). Some believe that more detailed labeling on a wider range of products would give U.S. producers an advantage, as many shoppers would prefer to buy domestic products over imports.

How to read the labels

The new COOL regulations require that labels list all countries where the animal was born, raised, and/or processed. To the chagrin of many, it is becoming more difficult to find meat labeled simply "Product of U.S.A.," which would signify that the cow was born, raised, and processed in this country only.

It is much more common now, especially on ground beef, to see labels that list multiple countries. Why? Often animals born in one country are taken to another country where they are raised and processed. This practice is commonly used to reduce costs or because farmers in different countries specialize in different aspects of livestock production—breeding, growing, feeding, or processing.

It's useful to know that COOL labels will list countries according to how long the animal spent in each place. For example, if an animal was simply born in Canada but raised and processed in the United States, the meat would be labeled "Product of U.S.A. and Canada." If the reverse were true—the animal was born in the U.S. but raised in Canada—the label would read "Product of Canada and U.S.A."

What's the impact?

Many in the food industry have been griping about having to comply with COOL labels, suggesting that the increased production costs it brings outweighs the consumer benefit. But there is certainly a mounting desire among consumers who are concerned about quality and safety to know where all their food comes from.

Industry leaders may not like the added cost, but I see a few positive results: the new labeling requirements will likely discourage some food producers from buying from certain countries simply because of price concerns. That could mean better-quality products, potential overall improvement in the foods available in our supermarkets, and the chance to support—if consumers so desire—American farmers and ranchers.

Have questions, comments or ideas for a future Supermarket Guru column? Send Phil a message at plempert@supermarketguru.com.

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