LMA leader comments on COOL, checkoff

By LORI COPE | East Texas Edition

Billy Perrin LMA president

July 24, 2003 -- At a time when several beef-related topics are topping the news, one of the nation's beef industry association leaders was in Northeast Texas recently, and shared his thoughts on country-of-origin labeling and the checkoff program.

Billy Perrin, who is serving his second term as president of Livestock Marketing Association (LMA), attended the July 16 Northeast Texas Beef Improvement Organization special sale in Sulphur Springs. Perrin, of Hugo, Okla., has 25 years experience in beef cattle marketing and is past chairman of the Oklahoma Beef Industry Council.

Although his great-grandfather and grandfather farmed and raised cattle near Sulphur Springs many years ago, Perrin was born and raised across the Red River in Oklahoma.

When it comes to country-of-origin labeling (COOL), Perrin said the association he represents is "in favor" of the program which would require retailers to label all retail beef with country-of-origin. The labels, unless funding for the program is denied by Congress, are to become mandatory as of September 2004.

One factor in the COOL debate is the recordkeeping requirements. "COOL can be done without being a burden on the producer," Perrin said. He suggested that producers could use the "farm number," given to them by the Farm Service Agency, on receipts/records kept when cattle are sold. Utilizing the USDA's Farm Service Agency would also "be ideal because there are employees already in place" to handle the paperwork.

When asked if COOL would generate additional paperwork for sale barn owners, Perrin, who owns Southern Oklahoma Livestock Auction in Ada, Okla., replied, "We have to keep the records for three years anyway. ... And most are on computers now. (The owners) can go back and see the records and see who the consignor is. ... I don't think it would be a very big deal."

Perrin added, "COOL needs to happen. If we don't, people we export our beef to will get it from countries who do."

Perrin also pointed to a reason why COOL, a law passed in the 2002 Farm Bill, is still being debated, and is having difficulty obtaining the necessarily federal funds to be implemented: "There are several multi-national companies who own cattle in other countries; and they don't want it (COOL) so they can bring their cattle in (to the U.S. for slaughter and processing and still have an U.S.-origin labeling)."

Personally, Perrin feels a national animal identification system is needed. In the future, he feels there will "no doubt" be a system in place.

This touched on the subject of the recent "mad cow" disease case in Canada, which ceased cattle and beef trade between Canada and the United States. "This is just an incidence where we need to know if their cattle are coming through the system" and having an identification system in place would be valuable.

Another issue beef producers are facing is the debate over the beef checkoff program. Earlier this month, one federal appeals court upheld a judge's ruling that it was unconstitutional, but two other court decisions, finding the program to be constitutional, may soon be challenged. Beef industry leaders have said the issue is likely to end up in the Supreme Court for a final decision.

Perrin offered another insight. "I think if the pork checkoff is found to be unconstitutional, then the Supreme Court will not hear it (beef checkoff case)." If the beef, or pork, checkoff is found unconstitutional, producers would not have to pay the checkoff assessment at the time of sale, unless they wanted to.

Perrin said LMA is not against the checkoff program, but would rather see it be a voluntary program and one where there's accountability (for the program's research/promotional) efforts.