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Not COOL

Posted on: January 23, 2015   |   Categories: Meat Labeling, News Releases

January 23, 2015 – By #South Dakota Farmer UnionCOOL has been under attack since its implementation in 2008 and the fires of angst were stoked most recently after the World Trade Organization’s ruling in October. While opponents of COOL have used the ruling to fuel their attack on the legislation, they have also ignored the fact that the core principles of COOL have never been struck down. The WTO ruling found that it was the implementation of the legislation, not the legislation itself that was at fault. Recently, American trade competitors have been placing blame on COOL for problems surrounding the cattle import industry. A recent study by C. Robert Taylor, Ph.D, an Auburn University Alfa eminent scholar and professor, explains that COOL is not to blame for the recent decline in demand for cattle imports to the U.S. The study findings include:

  • COOL has not had a significant negative effect on the price paid for imported slaughter cattle relative to comparable domestic cattle.

In fact the study points out that “the price basis is lower in the six years since the implementation of COOL than it was the preceding four years.”

  • COOL did not negatively impact imports of slaughter cattle.

“Qualitative and econometric analysis of Mandatory Price Reporting (MPR) and price data cast considerable doubt on assertions that COOL negatively affected imports of slaughter cattle” according to the study.

  • COOL did not significantly affect imports of feeder cattle.

“USDA monthly data on imports of 400-700 lb. cattle did not show COOL having a significant negative effect of imports of feeder cattle from either Canada or Mexico relative to placements in the U.S.” the study notes. It is important to note, the study concludes that “In light of this reasoning, neither Congress nor USDA should undertake any changes to COOL based on arguments that COOL has limited Canadian and Mexican access to the U.S. market.” National Farmers Union President Roger Johnson had this to say about the recent discussion on COOL: “COOL is popular with consumers because they want to know where their food comes from, and its popular with farmers and ranchers because they’re proud to put the American label on their products…Congress needs to stay the course on COOL.” These recent attacks are a classic case of the boy who cried wolf. As the study indicates, COOL is not to blame for these economic woes. It is important that we are steadfast in our support of our right to know, as well as our pride in our product and that we encourage our Congressional delegation to do the same.


Last Modified: 01/23/2015 7:17:33 pm MST