US Delays Manditory COOL

[melvill]

Earlier today, the U.S. Senate approved the Omnibus Appropriations Bill (HR 2673) for Fiscal Year 2004 with a 65-28 vote. The Appropriations bill which finances agriculture, veterans and most other domestic programs for the budget year included the two-year delay for Mandatory Country-of-Origin Labeling. The passage of the Omnibus Appropriations bill confirms a two-year delay on Country-of-Origin Labeling for red meats, fruits and vegetables, and peanuts only, i.e. deadline has been delayed until September 2006. However, both farm and wild raised fish are still subject to the September 2004 deadline

[Willowcreek]

Word coming back from the Senators and politicians is that a backroom agreement was reached to pass the Omnibus bill, but will still put COOL into effect. Haven't got it clear yet if its going to be a completely new law, industry agreed labeling, or what. Sounds like it will eventually be tied to mandatory ID.

With all the press against slaughtering downer cattle and feeding chicken litter to cattle, I think the sale of organic beef could take a big surge.

[cowman]

I do believe, in the long term, COOL will be a problem for America and an opportunity for Canada. It will put some definite added costs on the American cattleman. COOL does not apply to high end cuts going into the restaurant trade or manufacturing beef trade, so in reality what it is, is the supermarket shelf. The beef that we are selling right now, from the Canadian packing houses mostly enters the high end restaurant trade.
American packers probably won't be taking very many Canadian live cattle due to COOL. The continued border closings due to BSE are going to force the Canadian industry to come up with solutions. Probably a severe cut back in numbers and the opening of plants to kill off our beef that used to go to the big American plants. And these plants will open if the border isn't opened fairly soon(and I do mean for cows). There are mothballed plants here that can be up and running by summer. Cargill, IBP, and XL can handle quite a few quality cattle if they have to. With a viable manufacturing market for our beef(need the US border open) we don't need to worry about COOL we would be shipping directly into the MacDonalds, Wendys, Subway type market which isn't affected by COOL. Our top end cattle(boxed beef) would enter the American restaurant trade as it does now.(Western Feedlots sells the majority of its cattle to an American steak house chain).
I suspect the big plant at Pasquel Washington would have to close as they rely on Canadian cattle to operate. I have heard they are not having an easy time with reduced kills.
That is not to say everything would be rosy. Our exports to the USA would have to drop off big time which means we might have to reduce the cow herd in a big way. We would lose a lot of our cattle producers, but then that might be a good thing. A lot of us older guys need to quit and let the younger guys have a go at it.

[melvill]

More news on the COOL politicing south of the 49th. The following from the e-mailed newsletter "Beef Cow-Calf Weekly":

"While passage of the delay is a blow to COOL proponents, it doesn't mean the political battle is over. That's particularly true in an election year. Following passage of the delay, it was expected that Sen. Tom Daschle (D-SD), the senate majority leader locked in a tight re-election contest this year, would introduce legislation that would essentially repeal the delay."

[Willowcreek]

The word is that after the Jan.20 no vote against the funding bill, that a deal was made to reintroduce a new COOL law. This was done so the spending law could be passed. Supposedly this will be a fixed law that fills in the loopholes and exemptions of the last law.
I have not been able to get in touch with my Senator to find out though. He had been very pro-COOL and then voted to approve the spending bill, so their probably was some backroom deal.