Larry R. Meadows, Chief
United States Department of Agriculture
Agricultural Marketing Service
Stop –248, Room 2628-S
1400 Independence Avenue, SW
Washington, DC 20250-0248

Re:     Response to ANPRM on Grading of Imported Beef (65 Fed. Reg. 4780 (Feb. 1, 2000))

Dear Mr. Meadows:

The Food Marketing Institute (FMI) is pleased to respond to the advance notice of proposed rulemaking (ANPRM) issued by the Agricultural Marketing Service (AMS) regarding the agency’s current grading program for imported carcasses. 65 Fed. Reg. 4780 (Feb. 1, 2000). As discussed more fully below, FMI supports the continuation of the grading program for imported carcasses. We do not, however, believe that there is sufficient reason to continue the current requirement for country of origin marking on imported meat carcasses.

FMI is a non-profit association that conducts programs in research, education, industry relations and public affairs on behalf of its 1,500 members and their subsidiaries. Our membership includes food retailers and wholesalers, as well as their customers, in the United States and around the world. FMI’s domestic member companies operate approximately 21,000 retail food stores with a combined annual sales volume of $220 billion, which accounts for more than half of all grocery sales in the United States. FMI’s retail membership is composed of large multi-store chains, small regional firms, and independent supermarkets. Our international membership includes 200 members from 60 countries.

     A.     Background

     The Agricultural Marketing Act of 1946 directs and authorizes the Secretary of Agriculture “to inspect, certify, and identify the class, quality, quantity and condition of agricultural products.” 7 U.S.C. § 1622(h). Several purposes are provided for the
program, including enabling “consumers . . . to obtain the quality product which they desire.” Id. To achieve the ends of the statute, AMS promulgated regulations to create a grading and certification program. 7 C.F.R., Part 54. Section 54.5 of these regulations provides that the grading and certification services will be furnished for imported, as well as domestic, meat. However, the regulation requires imported meat to be marked with the country of origin on most of the major retail cuts. 7 C.F.R. § 54.5.

     AMS is currently reconsidering these regulations, in response to comments received in opposition or support from several trade associations, as well as the Canadian Embassy. Toward that end, AMS’s ANPRM asks whether the agency should adopt one of the following options:


  1. Discontinue the official grading of carcasses;
  2. Revise the grading regulations to require that the country of origin mark follow the product after fabrication; or
  3. Eliminate the current requirement that a country of origin mark be applied to imported carcasses.

B.     AMS Should Continue Grading of Imported Meats and Eliminate Requirement for Country of Origin Mark

FMI urges AMS to continue the grading program for imported meats and to eliminate the requirement for country of origin marking on imported carcasses. As retailers, our members seek to provide consumers with a broad selection of foods, including meat products. Information on the quality of the meat is essential for our members and their customers to make purchasing decisions. Indeed, one of the purposes of the authorizing statute is to enable consumers to obtain the quality of product that they desire. See 7 U.S.C. § 1622(h). The AMS grading program is critical to ensuring informed consumer choice. Given the relatively small amount of imported meat that is graded, we would not expect the impact on AMS of grading imported carcasses to be significant. Furthermore, refusing to grade imported meats might subject the United States to suit as a violation of international trade agreements. Accordingly, AMS should continue to allow imported carcasses to be graded under the current certification program.

In contrast, we recommend that USDA revise the regulations to eliminate the country of origin mark requirement because it is unnecessary. Under the current regulations, the country of origin mark must appear on the carcass before it is graded. However, as noted in the ANPRM, the mark is not required to remain on the cuts after processing and, in many cases, the country of origin marks are removed during trimming. As the country of origin is not relevant to the grade of the carcass and serves no purpose after grading, the regulations should be simplified to remove the country of origin marking requirement. When appropriate, retailers can and do obtain information
from their suppliers about the source of the meat by mechanisms such as contracts, bills of lading, or specifications. Therefore, we see no need to continue the regulatory requirement for country of origin marking on the carcass of imported meat.

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We appreciate the opportunity to provide AMS with our views regarding the agency’s grading and certification regulations with respect to imported carcasses.

Sincerely,


George Green
Vice President
General Counsel