Harry Siemens / Farmscape  – North American pork producers, processors, and retailers continue to prepare for the introduction of the mandatory country of origin labeling which took affect officially on September 30, 2008.

Saskatchewan Pork Development Board policy analyst Mark Ferguson believes U.S. processors and retailers will determine the impact of the new labelling requirements on Canadian pork producers. “Although the rule is apparently a little more flexible than the previous one, it’s very similar to what the USDA introduced several years ago,” said Ferguson. “Everything filters down from the retail level.”

Ferguson fears, if the industry considers the rules to complex or costly, some U.S. pork processing plants could decide not to purchase Canadian hogs or discount the prices.

He said a few aspects remain up in the air and it will depend on how retailers apply the rule.

“Retailers and U.S. packing plants and their ability to efficiently comply with the rule while at the same time using Canadian product will ultimately decide how it affects Canadian products in the US marketplace,” he said.

“Until we get clear interpretations from USDA on some of the key regulatory elements, it’s difficult to tell what the commercial implication will be,” said Deborah White the senior vice president and chief legal officer with the U.S. based Food Marketing Institute (FMI).

The FMI is the major trade association for the wholesale and retail food industry in the US. Approximately 1,500-food retail, wholesale members in the US, and around the world operate 26,000 retail outlets and generate a combined annual sales volume of 680 billion dollars.

“In this day and age being able to access food products from around the world is absolutely essential. We strongly oppose any barriers to trade that prevent us from sourcing the best products possible for consumers,” said White.

At this point, the FMI is working with the agriculture department for an interpretation of how the department will implement the rule.

“We’re looking at issues whether USDA will require the countries’ identification in a certain order or a certain order for some products and a different order for other types of products. We’re looking at the impacts on the distribution system as well,” she said. “Whether, for example the warehouses will need to keep products segregated by country of origin or whether they’ll be able to mix them in the distribution centre.”

White said until they receive definitive answers from USDA on some of these key points, it’s difficult to give clear and specific guidance to people or to understand exactly how workable the system will be.

She concedes it’s impossible to rule out the possibility of disruptions in the supply chain, at least in the short term, until the market sorts itself out and reacts.

“The U.S. retailers vary as much as the consumer groups they serve,” she says. “Each one will have to assess the regulatory impact of the new requirements and figure out how best to continue to provide high quality food products to consumers efficiently. Some may very well decide to limit sourcing for some items, such as produce or particular meat items. Others will look at the volume of product  they have committed to consumers and decide single sourcing just isn’t an option.”

 White believes working together is going to be essential.

“Retailers have the primary burden under the law. We are the ones who are required to provide country of origin information but we can’t look at a hand of bananas or a pork chop and know what the origins of those products are.”

White insists the retail and food distribution industries in the United States are going to do their very best to comply with the law and to serve consumers well. And, in doing so, will be depending on sound partnerships with suppliers.