High Cost of New Food Labeling System

The costs of the new food labeling system, taking effect next month under the Mandatory Country of Origin Labeling (M-COOL) regulation, could effect consumers, if retailers and suppliers choose to ignore them.

M-COOL, part of the 2008 Farm Bill, requires large food retailers to display labels showing the country of origin for products like meat, fruit and vegetables.

The estimated the total cost of the legislation to retailers, packers and producers will exceed $2.5 billion, according to US Department of Agriculture (USDA). Experts say consumers will likely feel the impact with a price increase of $0.04 to $0.07 per pound for meat.

US: New Labelling Law Could Cost Consumers US$2.5 Billion