The Department of Agriculture says a new regulation to tighten the usage of “Product of the USA” on meat labels is in line with what consumers expect from the disclosure, but several groups say they’re concerned about the possible trade ramifications of the move.
The new rule requires any meat, poultry or egg packaging bearing “Product of the USA” or “Made in the USA” terminology must come from animals that have never left the United States. Ag Secretary Tom Vilsack announced the change Monday at the annual gathering of the National Farmers Union, where he also urged companies to begin compliance as soon as feasible.
“We are now on record for the utilization of that label only — only — when the animal is born, raised, slaughtered and processed in the U.S.,” Vilsack told NFU members. “We are also basically saying you can’t get by with slapping an American flag on the package unless the animal is born, raised, slaughtered and processed in the U.S.”
The issue has been percolating in the meat industry since the 2015 repeal of mandatory country-of-origin labeling. That action was taken to avoid retaliation from Canada and Mexico following the World Trade Organization ruling against the United States in a trade dispute. Absent the mandatory language, concern emerged about the usage of “Product of the USA” terminology on foreign-born meat that was packaged or processed in the United States.
“Consumers expect when they see that label that everything was done in the U.S. and they put a value on that,” Vilsack told reporters after his remarks. “So it's a matter of making sure that the label act accurately represents the nature of the product.”
Vilsack pledged a “top-to-bottom review” of the label and its use in 2021 before rolling out a new proposed rule that included the born, raised and slaughtered caveat last year.
“Today’s product of USA announcement from Secretary Vilsack will give consumers confidence that they’re supporting American farmers and ranchers at the grocery store,” said NFU President Rob Larew.
“We welcome the end of this era of consumer deception,” R-CALF USA CEO Bill Bullard said in a statement. “No longer will multinational meatpackers be allowed to trick consumers into believing that foreign beef was produced by United States cattle farmers and ranchers.”
Many in the U.S. are concerned the retaliatory authority gained in that case could be leveraged if the countries have issues with USDA’s new rulemaking.
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But last year, Vilsack said retaliation was “not going to happen” because there was a “significant difference” between the language USDA had proposed at the time and the 2015 law that had been repealed. Namely, the former COOL law was a mandatory program and the “Product of the USA” regulation is a voluntary program.
While the program itself would be voluntary, opponents to the change have noted any companies seeking to utilize it would need to return to the practice of segregating live animals during production and processing, a practice that was at the heart of the WTO case. Nevertheless, North American Meat Institute spokesperson Sarah Little said the department “made some commonsense changes to address some of our concerns.
“We appreciate the adherence to the uniform compliance date for implementation and will continue to support our members to comply with labeling regulations,” she said.
Kent Bacus, executive director of government affairs for the National Cattlemen's Beef Association, said the organization appreciated USDA's work to “address this loophole” of imported meat being “mislabeled as a Product of the USA incorrectly at the end of the supply chain.”
“During the implementation period, NCBA's focus will remain on ensuring that these changes result in the opportunity for producer premiums while remaining trade compliant,” Bacus added.
The new rule is scheduled to go into effect at the beginning of 2026. USDA is also taking comments on proposed updates to labeling guidance “on the use of voluntary U.S.-origin label claims to provide examples of claims and the types of documentation that establishments may maintain to support use of the claims,” the department noted in a release.
Vilsack also announced $9.5 million in Local Meat Capacity grants to 42 projects as well as the additional steps in the department’s effort “to boost [seed] variety transparency to the farmer at the point of sale.”
Sara Wyant contributed to this story.
Story updated to include additional comment.
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