040140 Congress Delays U.S. Meat-Origin Labels to 2006

Washington - Two years after enacting a meat labeling law, Congress has decided a requirement to put country-of-origin labels on beef can wait until fall 2006, despite arguments the labels would reassure American consumers during a time of mad cow disease.

The U.S. meat industry and food retailers lobbied to postpone the labeling law, which they say is too costly and would be a record-keeping headache. Consumer and farm groups generally support the labels as a way to distinguish U.S. products on the grocery shelf.

The U.S. Senate approved the delay as part of a $375 billion government spending bill on Thursday, which now goes to President Bush for his signature. The administration backed the postponement of the label law, which was written into the bill by Republican leaders.

Democratic Leader Tom Daschle and other proponents said they would try in coming weeks to overturn the delay.

Consumer groups like Public Citizen and farm groups such as the National Farmers Union said they would keep pressure on lawmakers to put labeling back on schedule.

Trade groups speaking for cattle, hog and produce growers said they will craft a cheaper, voluntary labeling system as a replacement. Federal regulations are already in place allowing voluntary labeling but they have been shunned.

Daschle scoffed at the idea of voluntary labeling.

"We tried that. Give me a break. That has not worked," he said. "We need a mandatory system."

Daschle and other Democrats sought to frame mandatory labels as providing crucial information for American shoppers concerned about beef safety. The nation's first case of mad cow disease was found last month in a Holstein dairy cow imported from Canada in 2001, according to federal investigators.

“SPECIAL INTERESTS” BLAMED

Massachusetts Democrat Edward Kennedy said the delay in labeling showed the "power of special interests."

But there was no agreement among the Senate leadership to guarantee a vote on the labeling issue, two staff workers said. With congressional elections looming this fall, labeling proponents were expected to look for must-pass bills that could be used as vehicles to revive mandatory labeling.

Under the law Congress passed two years ago, mandatory labels were scheduled to appear in grocery stores on Sept. 30 on red meat, seafood, fruits, vegetables and peanuts.

Critics said the delay until 2006 will provide time to iron out problems in the law or to find a workable voluntary plan.

Besides the potential billion-dollar cost of mandatory labeling, livestock groups say the system was unfair because it did not cover restaurants or food service businesses -- a prime outlet for imported meat -- and exempts poultry altogether. Cattle and hog producers say the cost of mandatory labeling would mean lower slaughter prices for their animals.

At a meeting next week, the National Cattlemen's Beef Association board is expected to approve pilot projects for voluntary labels of beef in restaurants and grocery stores.

"We're going to have to put something in its place," said Jay Truitt of the cattle group, referring to the delay in the mandatory label law.

An Agriculture Department spokeswoman said the delay "gives Congress additional time to address the impacts of the requirements. We think that would be a wise thing to do."

While advocates say country-of-origin labels can help protect consumers, critics say the labels are primarily a marketing tool. The National Pork Producers Council said the labels were "no more than a political slogan."

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