May 27, 1999

Livestock producers want mandatory labeling for products imported from other countries. Retailers prefer a voluntary labeling program. The positions were laid out Wednesday before the Senate Agriculture Committee in a hearing that also examined the issue of price reporting. Committee Chairman Richard Lugar (R-IN) wants an industry consensus on that issue.

During its January 1997 convention, the National Cattlemen's Beef Association adopted a policy to require imported meat and meat products be labeled to identify the country of origin. The American Sheep Industry Association also wants lamb cuts at retail so labeled. Mixing imported and domestic lamb products in the meat case continues to increase in frequency, says Frank Moore, Wyoming producer and secretary-treasurer of the ASIA.

Another labeling issue, adds Moore, is allowing foreign lamb carcasses to be USDA quality graded and labeled at retail as USDA choice lamb. Since nearly 90% of domestic lamb is quality graded, customers "infer that graded lamb is domestic," Moore told the committee. "We urge every recourse be sought to end this deceptive practice."

Raymond M. Stewart, senior vice president of Hy-Vee, Inc., and representing the Food Marketing Institute, prefers voluntary labeling and said he understood that a major reason to label foreign products "is the notion that consumers may be moved to buy more domestic products, thinking that imports are somehow less safe and wholesome."

Whether or not that's true, he added, Hy-Vee has found "a very effective alternative." The company uses voluntary labeling programs supported by promotional efforts conducted in tandem with growers and suppliers. "In this manner, we establish the value of U.S. brands as safe, wholesome and of the highest quality. These efforts have dramatically increased sales," he added.

On the issue of price reporting, Lugar made it clear he wants "interested parties" to forge a consensus on mandatory price and volume reporting of livestock legislation. "The need for more information is evident," he said. "The problem now will be to try to provide more information so that it does good for people without creating a carnage of small businesses that fail, over-regulation or the so-called price police."

Lugar said he "senses a consensus" among committee members for reporting requirements that will lead to legislation. Agriculture Secretary Dan Glickman also told the committee he supports price reporting legislation that is transparent and readily understood.

Indiana Farm Bureau President Harry Pearson told the committee that low prices for pork and beef over the past two years make price reporting "an issue that needs to be resolved, for both producers and the meat industry."

Farm Bureau "is very concerned that producers be able to have access to packers within a reasonable distance of their operations. It is also important to producers that they have access to the price being paid by these packers for the animals that they are buying," Pearson added.

Mandatory price reporting will give producers "the tools they need to succeed (and) give them a sense of control over the final sale of their product," said Sen. Mike Enzi (R-WY).