November 22, 2007

 

COOL may lower price of pork from Canada

 

 

US introduction of the mandated country of origin labelling (COOL) on September 2008 may prompt American meat packers to discount the prices of pork from Canada.

 

Labelling for red meat was first proposed in 2002 US Farm Bill but was delayed several times.

 

Although the labelling provisions have not yet been finalized, it is expected that pork products will bear one of three labels, "Product of the US " for pork from pigs born, raised and slaughtered in the US, "Product of Canada and the US " for pork from, either feeder pigs or slaughter hogs in Canada and killed in the US or "Product of Canada" for pork from pigs born, raised and slaughtered in Canada.

 

The president of Paragon Economics says the planned September 2008 introduction of US mandatory country of origin labelling (COOL) has the potential to prompt American meat packers to discount the price of pigs with a Canadian background.

 

Steve Meyer, Paragon Economics president, said that there is a potential to drive a price wedge between Canadian pigs and US pigs because of the additional costs in segregation and labelling.

 

Meyer points out the possibility of some US packing companies no longer accepting Canadian pigs. However, he doubts the northern packers can live without pigs that have some Canadian background.

 

Meyer also discussed that companies with multiple plants may restrict Canadian pigs to one plant or specify certain days for killing Canadian pigs to reduce the hassles of segregation.

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