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COOL Causing Problems on Both Sides of the Borders
Published Tuesday, November 04, 2008 at 04:46 AM
The mandatory Country of Origin Labeling law has the pork and cattle industries in a pickle. On both sides of the U.S. – Canadian border, the common denominator is the myriad of contracts and working relationships between various parts of the industries. Producers want to know where they will be able to do business. Will they be able to sell their Canadian born hogs to a packer down the road or a state away?

At least three packers — Tyson Foods, Cargill and JBS Swift — will segregate cattle and hogs by country of birth. Pork producers fear that segregation will mean they will be paid less for their Canadian-born hogs. And Smithfield Foods says it will stop slaughtering Canadian-born hogs altogether next year.

COOL has resulted in a substantial drop in U.S. demand for Canadian feeder pigs. Coupled with problems in the general Canadian economy and their hog industry, producers in Canada seem to be waiting on the final hammer to fall.

The U.S. beef industry it also suffering from the new COOL rules. At Least one packer is discounting foreign-born steers by about $60 or five percent each head. John Lawrence, an economist at Iowa State University, says it is too early to tell how the law will affect retail prices and farm earnings.

© 2008 The Nebraska Rural Radio Association. All rights reserved.
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Leaderboard: Panhandle Coop