Beef industry leaders detail key issues at producer meeting
COOL draws comments, questions

By LORI COPE | East Texas Edition

May 1, 2003 -- Beef producers had access to key industry executives during the first of nine "Beef Industry Meetings" scheduled in the state.

About 60 producers gathered in Sulphur Springs on April 21 to gain insight from Texas Beef Council (TBC), Texas and Southwestern Cattle Raisers Association (TSCRA), and Texas Cattle Feeders Association (TCFA) on issues such as the beef checkoff, cattle prices, imports and exports, restrictions on cattle ownership, and country of origin labeling (COOL).

The producers were also given an opportunity to share their insights, and query the executives about the issues.

COOL proved to be the hot topic of the evening, as it drew the most questions and comments from the producers. The labeling rule, part of the 2002 Farm Bill, is currently in a voluntary stance, but as of Sept. 1, 2004, it will become mandatory for not only beef, but other segments of the agriculture industry, such as pork, nuts, and fish, but not poultry. The law deals not only with a label stating the product's origin country, but it also requires retailers to "maintain a verifiable record-keeping audit trail."

Opinions about COOL vary. Much (and often conflicting) information as been published about the law's recordkeeping trail, exemptions that include poultry and the foodservice industry, and the cost to producers and consumers. As one audience member queried, "What am I to believe?"

During his presentation before the audience, TSCRA Executive Vice President Matt Brockman said his association is in the process of asking U.S. Department of Agriculture to repeal COOL's mandatory requirement, but rather keep the provision on a voluntary level. He said the "concept of putting a label on beef in the meat case is not one anyone can argue." But one of the things he pointed to was putting "a costly label on a (beef) product that competes with 89-cent chicken," and "the cost could ultimately be passed to the (beef) producer."

One statistic shown at the meeting, by TCFA's Dr. Richard McDonald, indicated the cost to cow/calf ranchers will be about $13.30 per animal to maintain the needed records. Brockman also said, "There's no way to verify back through the producer, ... and self-certification cannot be audited."

The additional recordkeeping, and beef segretation chores at the packer, will likely mean the consumer will feel the financial effects of COOL.

"I'm wringing my hands over this," Brockman stated. "I believe there is not enough study to verify the consumer would (willingly) pay more" for a labeled, but more costly, product.

TSCRA, as well as other groups, voiced concern that chicken, and foodservice businesses, which sell more than 50 percent of the beef purchased in the United States, are excluded from the labeling requirements.

Brockman cited the current difficulty, now that COOL is a done deal according to the '02 Farm Bill, is "writing regulation to conform to the law."

Also during the meeting, in relating COOL with other key beef industry issues, Brockman said, "Discussion (about COOL) should have occurred a year ago. Let's not do it again on packer ownership, captive supplies, and concentration. ... Let's not pass law(s) now that we have to deal with the unintended consquences" after the fact, such as what has occurred with the new labeling law.

One audience member cited Brockman that TSCRA "should have been with us (Independent Cattleman's Association and R-CALF) last year" when COOL provisions were dealt with. The audience member said TSCRA should be putting as much effort into helping with the regulations of COOL as they are in trying to get it repealed.

COOL will be addressed in Austin on May 1 during the USDA "listening session" that will provide the public with information, and allow for public comment.

Other "Beef Industry Meetings" hosted by TSCRA, TBC, and TCFA were held in Crockett and Athens in late April, and are also scheduled for May 5 in Abilene, May 6 in Uvalde, and May 7 in San Angelo, May 20 in Pampa, May 21 in Hereford, and May 22 in Lubbock. Others are scheduled in the near future.