REDFIELD, Iowa (DTN) -- Mandatory Country of Origin Labeling (MCOOL) gained ground this week as the Senate Agriculture Committee advanced its version of the Farm Bill.

Senate Majority Leader John Thune (R-S.D.) led the charge to reinstate MCOOL for beef, which is tied to the American Beef Labeling Act. The Senate Agriculture Committee has approved the amendment to include the mandatory label, but the bill has not yet completed the legislative process. The American Beef Labeling Act directs USDA and the U.S. Trade Representative to develop a World Trade Organization (WTO) compliant labeling system within a year.

"We commend the Senate Agriculture Committee for its recognition that American cattle ranchers deserve the opportunity to compete for consumers who want American beef and that all American consumers deserve to know where their beef comes from," said R-CALF USA CEO Bill Bullard. "We also recognize our thousands of cattle producer members who have stood behind this effort for years and never wavered in their commitment to restoring MCOOL."

MCOOL HISTORY DATES BACK TO 2008

MCOOL has been a long-running issue for American beef. The 2008 Farm Bill originally put it in place, and it took effect in 2009. This system required retailers to identify the country or countries where an animal was born, raised and slaughtered.

In December 2015, Congress repealed MCOOL for beef after the WTO authorized retaliatory measures against U.S. beef exports, mainly due to concerns from Canada and Mexico. Supporters of the measure say the proposal seeks a WTO-compliant framework to avoid trade issues that led to the repeal.

The United States Cattlemen's Association (USCA) supports the mandatory measure as well. "USCA has fought for clear, honest beef labels from the very beginning, and we are encouraged to see MCOOL back in the conversation in a serious way," said USCA President Justin Tupper. "U.S. consumers deserve to know where their beef comes from, and we support a WTO-compliant framework that requires all beef--domestic and imported--to be accurately labeled. Done right, MCOOL doesn't just give families a clear choice at the meat counter, it will restore integrity across our trade deals and the broader marketplace."

INDUSTRY SUPPORT BUILDS MOMENTUM

At a gathering of agriculture and beef industry leaders in the Oval Office on Sept. 4, President Donald Trump signed an executive order directing the administration to review the potential for Mandatory Country of Origin Labeling for beef. Those in attendance knew it would be Congress who would have to take action to move the measure forward. Tupper said, "The lasting impact will be decided by the agencies as they do their review and Congress, who can take action to support these moves."

The National Farmers Union president Rob Larew called the Senate Ag Committee's actions a real win for family farmers and ranchers. "Country-of-origin labeling is a major win for farmers and consumers alike," he said.

The bipartisan support in the Senate, positive backing by the President, and support of several organizations is enough to convince Bullard that MCOOL is important. "We must remain vigilant to ensure MCOOL remains in the Farm Bill through the next steps of this process and is ultimately restored into law," he concluded.

OPPONENTS WARN OF HIGHER COSTS

Still other organizations oppose the mandatory labeling. At the NCBA summer business meeting in July, National Cattlemen's Beef Association senior vice president of government affairs Ethan Lane told DTN that MCOOL would be a way to increase the price consumers have to pay for beef. "There is not a more efficient way to increase the price consumers are paying at the grocery store than to saddle the supply chain with that compliance cost right now," he said. Rather, NCBA supports the voluntary system with the Product of the USA label. "It is targeted at marketing our product," Lane added. "It is a voluntary program that allows producers to ensure, under the new rule, first of all, that nothing is being labeled a product of the USA that did not come from the United States. So, we've closed that loophole."

The Meat Institute said the MCOOL amendment would put more pressure on an already struggling beef supply chain and would cause higher prices for consumers.

"As we look ahead to consideration of the Farm Bill by the full Senate, the Meat Institute will continue to oppose MCOOL provisions because they raise the price of beef for American families," said Meat Institute President and CEO Julie Anna Potts. "Consumers are paying more for beef than ever before. It is the worst time for Congress to interfere with markets, adding costs and bureaucracy to production by mandating how beef should be marketed to consumers."

Potts said MCOOL would cross the efforts by the Trump Administration and Congress to relieve the high price of food. "MCOOL's excessive costs are a threat to consumer demand which has sustained the entire beef supply chain through tough conditions," she added.

The Farm Bill will move forward for Senate leaders to work toward approval of the package. The House has already passed its version. The 2018 Farm Bill is currently operating under an extension, which will expire on Sept. 30.

Also see, "Trump Signs Beef Executive Orders Targeting Monopoly Packers, Wolf Protections and MCOOL," https://www.dtnpf.com/…

Jennifer Carrico can be reached at jennifer.carrico@dtn.com

Follow her on social platform X @JennCattleGal

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