A new economic analysis released by the Meat Institute estimates that reinstating mandatory country-of-origin labeling (MCOOL) for beef and pork would add more than $1 billion in annual costs across the U.S. meat supply chain, with much of those expenses ultimately passed on to consumers.
The report, prepared by Decision Innovation Solutions, updates earlier USDA and industry research using production, trade and consumption data from 2021 through 2025. Researchers evaluated the potential costs of reinstating the 2013 MCOOL requirements, which mandated tracking where animals were born, raised and slaughtered.
According to the study, first-year implementation costs would total about $1.02 billion, including $721.3 million for the beef industry and $295.5 million for pork. While one-time capital investments such as equipment and software would account for a relatively small share of the expense, the report found most costs would come from ongoing requirements for recordkeeping, product segregation, labeling, tracking and verification.
Over time, the cost to the beef and pork industries would be about $4.8 billion over five years and roughly $10.1 billion over 10 years, with the beef sector accounting for about 70% of the total expense.
Retail beef was identified as the supply chain segment most affected by MCOOL, with ground beef among the costliest products to label because domestic and imported beef is often blended to meet lean-to-fat specifications. The study estimates compliance costs could range from $202 million to nearly $688 million annually.
The study estimates consumers would pay an additional $835.1 million each year for beef purchases and another $284.3 million for pork, adding more than $1.1 billion annually to grocery bills.
The report also found livestock producers could face reduced marketing flexibility, additional documentation requirements and lower market efficiency if mandatory country-of-origin labeling were reinstated.
Meat Institute President and CEO Julie Anna Potts said the findings show MCOOL would increase food costs at a time when consumers and the beef industry are already facing economic pressure.
“This study proves there are real and significant costs to MCOOL which would raise the price of meat for consumers already struggling to afford groceries,” Potts said. “MCOOL would burden both packers and livestock producers with added costs at a time when beef packers are losing money due to the smallest herd size in 75 years causing record high prices for cattle.”
Potts also argued that consumers already have access to origin information through USDA’s voluntary “Product of USA” labeling standard.
“There is simply no need for a new label that will hurt the entire value chain,” she said.
Earlier this year, USDA’s Food Safety and Inspection Service introduced a voluntary, trade-compliant Product of the USA label for meat from animals born, raised and processed in the U.S.
Ranchers-Cattlemen Action Legal Fund, USA (R-CALF USA) CEO Bill Bullard criticized the Meat Institute-commissioned analysis, arguing it relies on older economic models and assumptions that do not reflect current technology or market conditions. He said the report itself acknowledges that some of its underlying cost estimates may be outdated and contended that several key calculations, including estimates involving mixed-origin cattle, were not adequately explained or supported.
Bullard said researchers could have used actual compliance costs from the period between 2013 and 2015 when MCOOL applied to beef. He argued that labeling costs were relatively small compared with the benefits to producers and consumers. Bullard said public polling continues to show strong support for restoring mandatory labeling for beef.
R-CALF USA is urging Congress to include the policy in the next farm bill. — Charles Wallace, WLJ contributing editor
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