USDA Finalizes Voluntary “Product of USA” Label Claim to Enhance Consumer Protection and Funds Local Meat Capacity Grant Program
According to the United States Department of Agriculture (USDA), at the National Farmers Union Annual Convention in Scottsdale yesterday, USDA Secretary Tom Vilsack announced the finalization of a rule to align the voluntary “Product of USA” label claim with consumer understanding of what the claim means.
USDA’s final “Product of USA” rule allows the voluntary “Product of USA” or “Made in the USA” label claim to be used on meat, poultry and egg products only when they are derived from animals born, raised, slaughtered and processed in the United States. The rule will prohibit misleading U.S. origin labeling in the market and help ensure that the information that consumers receive about where their food comes from is truthful after the World Trade Organization ruled that a previous mandatory rule violated U.S. trade obligations in a case brought against it by Canada and Mexico.
Under the final rule, the “Product of USA” or “Made in the USA” label claim will continue to be voluntary. It will also remain eligible for generic label approval, meaning it would not need to be pre-approved by USDA’s Food Safety and Inspection Service (FSIS) before it can be used on regulated product, but would require the establishment to maintain documentation on file to support the claim. The final rule also allows the use of other voluntary U.S. origin claims on meat, poultry and egg products sold in the marketplace. These claims will need to include a description on the package of the preparation and processing steps that occurred in the United States upon which the claim is made.
Establishments voluntarily using a claim subject to the final rule will need to comply with the new regulatory requirements by January 1, 2026, and are encouraged to do so as soon as practicable after the publication of this final rule that is designed to “ensure that when consumers see ‘Product of USA’ they can trust the authenticity of that label and know that every step involved, from birth to processing, was done here in America.”
Asked why the rule won’t go into effect for almost two more years, Vilsack said the lengthy implementation period is necessary so food companies that have already labeled products won’t suffer economic harm in the transition.
The lengthy implementation period raises the possibility that groups opposed to the rule may try to stop it before it is implemented, but USDA’s final “Product of USA” rule is supported by petitions, thousands of comments from stakeholders, and data from a nationwide consumer survey.
Leadership from NCBA, US Cattlemen’s Association, and the North American Meat Institute each expressed their appreciation to USDA, excitement to see the loophole being addressed, and continued support of their members as they focus on ensuring these labeling regulations result in the opportunity for producer premiums while remaining trade compliant.
R-CALF CEO Bill Bullard commented that they too welcomed “the end of this era of consumer deception” as the final rule effectively ends the voluntary mislabeling of beef, but that it still doesn’t require anyone to label anything. Bullard said “While this is an important step in the right direction, Congress needs to pass MCOOL as quickly as possible to require all beef sold in grocery stores to be labeled as to where the animal from which the beef was derived was born, raised, and slaughtered. Only then will consumers be informed as to which beef was produced by American cattle farmers and ranchers and which beef was produced under some foreign country’s food safety regime.” According to Bullard, the inclusion of the American Beef Labeling Act (S. 52) or the Country of Origin Labeling Enforcement Act (H.R. 5081), both of which require country of origin labels on both domestic and foreign beef sold in grocery stores, is the most important step Congress can take in the 2024 Farm Bill to restore competition for America’s cattle farmers and ranchers.
USDA also announced yesterday that they are awarding $9.5 million to 42 projects through the Local Meat Capacity (Local MCap) grant program which is targeted to support meat and poultry processors with smaller-scale projects, with a goal to increase processing availability and variety for local and regional livestock producers to obtain fairer prices for the animals they raise and give consumers more options in the marketplace.
This initial set of awards through Local MCap is for Simplified Equipment Only projects as USDA confirmed they will announce additional awards for both Equipment and Processing Expansion Local MCap grants at a later date.
This first set of awards for simplified equipment projects spans 27 states and Puerto Rico, and funds projects from $10,000 to $250,000 to purchase processing equipment such as meat grinders, stuffers, smokers, and other processing and packaging equipment that will provide local producers with the ability to create new value-added products for local consumers, maximize the value of their animals, utilize byproducts, and increase animal harvest. These funds will allow local processors to increase the number of livestock processed annually, implement new processing technologies, train existing staff, hire new employees, and benefit local family producers.
• https://www.usda.gov/media/press-releases/2024/03/11/usda-finalizes-voluntary-product-usa-label-claim-enhance-consumer
• https://www.r-calfusa.com/ranch-group-welcomes-end-to-deceptive-origin-claims-renews-call-for-mcool-for-beef/
USDA Announces Next Major Step in Promoting Competition in Agriculture and Advancing Economic Opportunity and Fairness for Growers
Last week the U.S. Department of Agriculture (USDA) announced the finalization of Inclusive Competition and Market Integrity Under the Packers and Stockyards Act. The final rule that will be effective 60 days following publication in the Federal Register establishes clearer, more effective standards under the Packers and Stockyards (P&S) Act for prohibited practices relating to discrimination, retaliation, and deception in contracting. This will help producers and growers that have suffered from increasingly consolidated markets over the last 30 years by enhancing market integrity and ensuring fair access to economic opportunities.
USDA is finalizing a series of rules under the Packers and Stockyards Act as part of President Biden’s historic Executive Order on Promoting Competition in America’s Economy. These rules complement a series of other all-encompassing actions by USDA to increase competition in agricultural markets, create a fairer playing field for small- and mid-size farmers, lower grocery costs for consumers, and strengthen local and regional food systems. Actions include enhancing independent meat and poultry and other diversified food processing capacity, expanding domestic, innovative fertilizer production, creating a fairer market for seeds and other agriculture inputs, investing in State Attorney General enforcement capacity and supporting more robust and resilient supply chains. According to the USDA, these investments will create better economic opportunities, which will result in more affordable prices and choices for consumers at the grocery store, in addition to more opportunities and revenue for producers.
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