Feds boost meat biz
Ag dept announces new ‘made in USA’ rule, investments in meat processors
By Forrest J.H.
Food labels proudly claiming “Made in America” probably don’t mean what you think they mean.
USDA Secretary Tom Vilsack announced at a farmers union conference earlier this month the federal government would be stricter about “Product of the USA” labels on meat, poultry and egg products. The new rules would restrict the labelling for products derived only from animals born, raised, slaughtered and processed in the United States. On a similar note, Vilsack also announced nearly $10 million in direct investments to dozens of smaller scale meat processing facilities around the country.
Meat producers will have to keep documentation on file proving the American origins of their product under the new USDA rule. Products claiming “Made in America” or something like that will need to include a description on the packaging describing its processing and preparation.
About 85 percent of American grocery shoppers failed to correctly understand the “Product of USA” labels under previous rules, according to RTI International, a nonprofit research group. Consumers were also highly unlikely to understand the differences and meanings of USDA inspections marks on meat products.
New labeling rules and guidance should bring the products more in line with what consumers come to expect from them, according to the USDA.
While the Agriculture Department seeks to crack down on misleading labels, USDA Secretary Vilsack said the government would award $9.5 million to 42 projects they think would make smaller meat and poultry outfits more competitive in the marketplace.
For example, the USDA will invest in a rural Maryland butcher to buy new machines for smoking, sausage-making and grinding. On top of that, the government’s investment is intended to create a few more jobs at that butcher so it can source products from many more farms in the area.
But that is just one of many projects across 27 states and Puerto Rico that will see federal government support for meat processing.
The USDA’s recent announcements are in line with the Biden Administration’s aims to drastically buck trends of consolidation in the food industry. Over the past 50 years, more and more American meat production has taken place at fewer and fewer places, according to industry researchers. However, large meat producers saw huge government support under the Trump Administration during the heights of the Covid-19 Pandemic. Biden’s Agriculture Department stands to gain support from farm bureaus in liberal states and unions that have struggled since the beginning of the pandemic.
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This article’s ingredients
USDA Finalizes Voluntary “Product of USA” Label Claim to Enhance Consumer Protection
March 11, 2024
U.S. Department of Agriculture press releases
Analyzing Consumers’ Value of “Product of USA” Labeling Claims
November 30, 2022
RTI International report prepared for the Food Safety and Inspection Service
USDA Announces $500 Million for Expanded Meat & Poultry Processing Capacity as Part of Efforts to Increase Competition, Level the Playing Field for Family Farmers and Ranchers, and Build a Better Food System
July 9, 2021
U.S. Department of Agriculture media
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Applied Economics Perspectives and Policy
https://onlinelibrary.wiley.com/doi/abs/10.1093/aepp/ppr032
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