Food Origin Labels Will Cost $2.5 Billion

Two months from now, shoppers shouldn't have to wonder about the country of origin of beef, chicken, fresh produce, and frozen fruits and vegetables, among other products, in grocery aisles.

After tortured legislative negotiations dating back to 2002, federal food-labeling rules finally go into effect Sept. 30. Originally mandated in the 2002 farm bill, the rules stalled under industry pressure, then revived in the 2008 farm bill, which was enacted over President Bush's veto.

While consumers will gain insight into their food choices, they also are likely to pay for the privilege in the form of higher prices.

U.S. companies will spend $2.5 billion next year complying with the country-of-origin food label rules, according to Agriculture Department findings outlined Friday.

The department's assessment offers some hints of how much more consumers might pay. For instance, retailers' implementation costs are pegged at 7 cents a pound for beef and 4 cents a pound for pork.

The average individual U.S. producer will shoulder initial costs of $376 and the average U.S. retailer will face initial costs of $26,149, according to the latest estimate.

Source: The Oregonian