Country of Origin Labeling

1
Country of Origin Labeling

• Finfish Shellfish

2
Country of Origin Labeling

• Consumer Notification Required at Retail
• Country of Origin
• Wild or Farm Raised (Fish and Shellfish)
• Label or notice must
• Be legible
• Be in English
• Not obscure other required information

3
Country of Origin Labeling

• Principal Components of the Proposed Rule
• Who must label
• What must be labeled
• Determining origin
• Recordkeeping

4
Country of Origin Labeling

• Who Must Label - Retailer
• Retailer has meaning given in Perishable
  Agricultural Commodities Act (PACA) a business
  engaged in the selling of fresh and frozen fruits
  and vegetables at retail with an annual invoice
  value of more than 230,000
• Exempts food service establishments including
  those within retail establishments (e.g. delis
  and salad bars)

5
Country of Origin Labeling

• Retailers
• USDA would identify retailers through PACA
  licenses
  
• Approximately 4,500 licensees (37,000 stores)
• PACA definition excludes butcher shops, fish
  markets, and exporters
  

6
Country of Origin Labeling

• Covered Commodities
• Beef, Pork, Lamb muscle cuts and ground
• Fish and Shellfish (Wild and Farm Raised)
• Fresh and Frozen Fruits and Vegetables
• Peanuts

7
Country of Origin Labeling

• Farm Raised Fish and Shellfish
• Harvested in controlled or selected environments,
  including
  
• Ocean-ranched fish (e.g. penned)
• Shellfish confined to managed beds

8
Country of Origin Labeling

• Wild Fish and Shellfish
• Naturally-born or hatchery-originated and
  released in the wild
  
• Harvested in the wild (from non-controlled waters
  or beds)

9
Country of Origin Labeling

• Exclusions
• Covered commodities are excluded if an
  ingredient in a processed food item
  
• Regulation defines processed food item
• Does not exclude covered commodities just because
  they have been further prepared for consumption
  

10
Country of Origin Labeling

• Processed Food Item Change of Character
• A combination of ingredients that include a
  covered commodity that has undergone a physical
  or chemical change, and has character that is
  different from that of the covered commodity

11
Country of Origin Labeling

• Processed Food Item
• Examples of covered commodities excluded because
  of change of character
  
• Oranges squeezed to make orange juice
• Pork bellies cured and smoked to make bacon

12
Country of Origin Labeling

• Processed Food Item Combination of Substantive
  Food Components
  
• A covered commodity that has been combined with
• Other covered commodities
• Other substantive food components,
• And has a character different than that of the
  covered commodity
  

13
Country of Origin Labeling

• Processed Food Item
• Examples of covered commodities excluded because
  they are a combination of substantive food
  components
  
• Bagged salad (e.g. lettuce, carrots and cabbage)
• Fruit trays/Vegetable trays (e.g. party trays)
• Seafood medley (e.g. shrimp, scallops and clams)
• Mixed nuts

14
Country of Origin Labeling

• Covered Commodities Required to be Labeled
• Examples
• Solution-enhanced and seasoned pork loin
• Cooked beef roast
• Canned salmon
• Bagged lettuce
• Canned roasted and salted peanuts
• Breaded shrimp

15
Country of Origin Labeling

• United States Country of Origin
• Wild Fish and Shellfish Must be derived
  exclusively from fish or shellfish
  
• Harvested in U.S. waters, or by a U.S. flagged
  vessel and
  
• Processed in the U.S., or aboard a U.S. flagged
  vessel

16
Country of Origin Labeling

• United States Country of Origin
• Farm-raised Fish and Shellfish Must be derived
  exclusively from fish or shellfish hatched,
  raised, harvested, and processed in the U.S.

17
Country of Origin Labeling

• Mixed Origin Product
• Products with an origin that includes production
  steps (e.g., born, raised, slaughtered) that
  occurred in more than one country, including the
  U.S.

18
Country of Origin Labeling

• Mixed Origin Product Examples
• Shrimp harvested in Mexico and processed in the
  U.S.
  
• Pork from animals born in Canada and raised and
  slaughtered in U.S.
  

19
Country of Origin Labeling

• Labeling Mixed Origin Product Examples
• Pork Imported from Canada, Raised and
  Slaughtered in United States
  
• Halibut Imported from Japan, Processed in the
  United States

20
Country of Origin Labeling

• Blended Products
• Specific covered commodities of different origins
  that are combined for retail sales
  
• (e.g., shrimp or ground beef)

21
Country of Origin Labeling

• Labeling Blended Products
• Each specific origin included in the blend must
  be included on the label in alphabetical order

22
Country of Origin Labeling

• Labeling Blended Products-Examples
• Shrimp tails Product of Mexico and Product of
  USA
  
• Ground beef Product of Australia Imported from
  Mexico, Raised and Slaughtered in U.S.A.
  Product of U.S.A.

23
Country of Origin Labeling

• Labeling Imported Covered Commodities
• Imported covered commodities shall retain the
  origin as determined by U.S. Customs and Border
  Protection

24
Country of Origin Labeling

• Labeling Imported Covered Commodities Example
• Farm Raised Salmon Product of Chile

25
Country of Origin Labeling

• Information
• Suppliers must provide origin information to
  buyers

26
Country of Origin Labeling

• Recordkeeping
• Requires documentation to substantiate origin
  claims
  
• Provide chain of custody information

27
Country of Origin Labeling

• Recordkeeping - Suppliers
• Must possess or have legal access to records that
  substantiate origin claims
  
• Must maintain records unique to each transaction
  for 2 years
  
• Records must identify previous source and
  subsequent recipient of product
  

28
Country of Origin Labeling

• Recordkeeping - Retailers
• Must maintain for 2 years from the date of retail
  sales records that identify the supplier, product
  unique to the transaction, and the origin
  information
• Must maintain at the store for 7 days the records
  that were relied on at point of sale to make
  origin claims
  
• Not required to verify the accuracy of
  information provided by suppliers, but will be
  responsible if they use erroneous information
  that they should have suspected was incorrect

29
Country of Origin Labeling

• Compliance
• USDA will seek to enter into cooperative
  agreements with each State for retail compliance
  reviews
  
• USDA would coordinate the scheduling and
  determine procedures for reviews

30
Country of Origin Labeling

• Is There a Significant Market Failure?
• Strongest case is inadequate or asymmetric
  information
  
• But, no apparent barriers to private provision of
  COOL
  
• Thus, no compelling market failure justification

31
Country of Origin Labeling

• Benefits
• Survey findings show that COOL is of interest to
  majority of consumers
  
• Experimental survey findings identify large
  consumer willingness to pay for COOL
  
• Market evidence indicates limited demand for
  COOL
  
• Limitations of studies coupled with market
  evidence suggest only small benefits from
  mandatory COOL

32
Farm-Raised Shellfish

• Hatchery/nursery-Provide adequate information for
  an auditor to verify origin of seed, eyed larvae
  and set cultch.
  
• spawning records
• Brood stock records
• Spat collection records
• Production records
• Import permits
• Crop reports

33
Grow-Out

• Segregate by origin and manner of production
• Cultch purchase records
• Seed transfer records
• Transplant records
• Crop reports
• Harvest records
• Seed/eyed larvae records

34
Processor/Dealer

• Segregate according to origin and manner of
  production and label
  
• Harvest reports
• HACCP Records
• Receiving logs
• Shipping records/bills of lading
• Invoices
• Tags