040112 US Food Groups Agree to Voluntary Labeling

Washington - U.S. food retailers and the meat industry on Friday agreed to participate in a voluntary country-of-origin labeling program if Congress repeals a law mandating it.

Congress is considering a two-year delay of a law requiring country-of-origin labels on meat, seafood and fruits and vegetables after Sept. 30.

The U.S. Agriculture Department has estimated the labeling program would cost American food makers up to $3.9 billion in its first year.

"There is widespread agreement that the mandatory program is too costly and unworkable in the real world," said Tom Stenzel, president of the United Fresh Fruit and Vegetable Association.

"What is needed is an industry-driven framework for providing country-of-origin information that is market-driven and does not increase the cost of food," he added.

The trade groups which represent meat producers and companies such as Coca-Cola (KO.N: Quote, Profile, Research) , Kraft Foods (KFT.N: Quote, Profile, Research) and Nestle (NESN.VX: Quote, Profile, Research) , said they hoped to finalize a voluntary labeling program by this spring.

The USDA already has a voluntary labeling program in place, but foodmakers have not signed on.

"The current law is so burdensome that no one wanted, even on a voluntary basis, to try to implement it in its current form," said Tim Hammonds, president of the Food Marketing Institute.

With support from consumers and farm groups, Congress in 2002 passed the labeling law as a way to distinguish U.S.-grown food from competitors at the grocery store.

"Up until now, some of these groups have been vehemently opposed to country of origin labeling," said Iowa Sen. Chuck Grassley, a Republican. "They know the writing is on the wall."

Tom Buis of the National Farmers Union said an industry-based voluntary program would not work.

"Companies are making a lot of money importing cheaper, lower quality goods," he said. "What incentive do they have in saying this has come from another country?"

Consumer groups and lawmakers have urged the Bush administration for an immediate federal order to put country-of-origin labels on meat due to last month's discovery of mad cow disease in a Washington state dairy cow.

DNA test results have shown that the infected cow was born in Canada. Under the mandatory program, only cattle born, raised and slaughtered in the United States would have a 100% U.S. beef label.

The industry groups are expected to hold a summit meeting in the "very near future" to work out details of the program.

If Congress repeals the mandatory law, Hammonds said the industry would immediately set a deadline for implementation of their voluntary program.

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