The U.S. Department of Agriculture has released the finalization of a rule to align the voluntary “Product of USA” label claim with consumer understanding of what the claim means. Ag Secretary Tom Vilsack also announced USDA is awarding $9.5 million to 42 projects through the Local Meat Capacity grant program to expand processing options for the meat and poultry industry and new actions to ensure transparency and a fair and competitive market in the U.S seed industry.
“Today’s announcement is a vital step toward consumer protection and builds on the Biden-Harris Administration’s work to bolster trust and fairness in the marketplace where smaller processors can compete,” said Agriculture Secretary Tom Vilsack. “This final rule will ensure that when consumers see ‘Product of USA’ they can trust the authenticity of that label and know that every step involved, from birth to processing, was done here in America.”
“In addition, the Local Meat Capacity grants are addressing critical processing infrastructure needs for local and regional livestock and poultry producers, ensuring their products get to market efficiently and cost effectively, which supports local economies, new jobs, and more choices for consumers,” Secretary Vilsack added. “USDA is also committed to boosting the farmer’s voice in our seed patent system and enforcing the disclosure laws on the books as we deliver more and better choices for farmers.”
These actions build on President Biden’s Executive Order on Promoting Competition in the American Economy and the Biden-Harris Administration’s Action Plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain. They complement a series of other all-encompassing actions by USDA to increase competition in agricultural markets, create a fairer playing field for small- and mid-size farmers, lower grocery costs for consumers, and strengthen local and regional food systems.
“Product of USA” Final Rule
USDA’s final “Product of USA” rule allows the voluntary “Product of USA” or “Made in the USA” label claim to be used on meat, poultry and egg products only when they are derived from animals born, raised, slaughtered and processed in the United States. The rule will prohibit misleading U.S. origin labeling in the market, and help ensure that the information that consumers receive about where their food comes from is truthful.
USDA’s final “Product of USA” rule is supported by petitions, thousands of comments from stakeholders, and data from a nationwide consumer survey.
Under the final rule, the “Product of USA” or “Made in the USA” label claim will continue to be voluntary. It will also remain eligible for generic label approval, meaning it would not need to be pre-approved by USDA’s Food Safety and Inspection Service (FSIS) before it can be used on regulated product, but would require the establishment to maintain documentation on file to support the claim. The final rule also allows the use of other voluntary U.S. origin claims on meat, poultry and egg products sold in the marketplace. These claims will need to include a description on the package of the preparation and processing steps that occurred in the United States upon which the claim is made.
USDA has also published an updated 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 guidance will be open for public comment for 60 days after publishing in the Federal Register. Public comments can be submitted at www.regulations.gov.
Establishments voluntarily using a claim subject to the final rule will need to comply with the new regulatory requirements by January 1, 2026, and are encouraged to do so as soon as practicable after the publication of this final rule.
R-CALF USA CEO Bill Bullard: “We welcome the end of this era of consumer deception. No longer will multinational meatpackers be allowed to trick consumers into believing that foreign beef was produced by United States cattle farmers and ranchers.”
Bullard said that while the final rule effectively ends the voluntary mislabeling of beef, it doesn’t require anyone to label anything.
“While this is an important step in the right direction, Congress needs to pass MCOOL as quickly as possible to require all beef sold in grocery stores to be labeled as to where the animal from which the beef was derived was born, raised, and slaughtered. Only then will consumers be informed as to which beef was produced by American cattle farmers and ranchers and which beef was produced under some foreign country’s food safety regime.”
Bullard said the inclusion of the American Beef Labeling Act (S. 52) or the Country of Origin Labeling Enforcement Act (H.R. 5081), both of which require country of origin labels on both domestic and foreign beef sold in grocery stores, is the most important step Congress can take in the 2024 Farm Bill to restore competition for America’s cattle farmers and ranchers.
“We should not have a Farm Bill without MCOOL,” he said.
NCBA Executive Director of Government Affairs Kent Bacus: “NCBA has been committed to finding solutions to this problem ever since a producer-led NCBA working group raised the alarm, years ago, that imported beef could be mislabeled as a Product of the USA incorrectly at the end of the supply chain. We appreciate USDA’s effort to address this loophole. 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.”
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