The Senate Agriculture Committee has approved an amendment restoring Mandatory Country of Origin Labeling (MCOOL) for beef in its version of the Farm Bill, reviving a labeling regime Congress repealed in 2015 after World Trade Organization-authorized retaliation threatened U.S. beef exports.

Senate Majority Leader John Thune, R-S.D., led the effort to reinstate the label, which is tied to the American Beef Labeling Act. The bill has not yet completed the legislative process. The act directs USDA and the U.S. Trade Representative to build a WTO-compliant labeling system within one year.

"We commend the Senate Agriculture Committee for its recognition that American cattle ranchers deserve the opportunity to compete for consumers who want American beef and that all American consumers deserve to know where their beef comes from," said R-CALF USA CEO Bill Bullard. "We also recognize our thousands of cattle producer members who have stood behind this effort for years and never wavered in their commitment to restoring MCOOL."

A 17-year policy cycle

The labeling fight dates to the 2008 farm bill, which put MCOOL in place; it took effect in 2009. The rule required retailers to identify the country or countries where an animal was born, raised and slaughtered. In December 2015, Congress repealed MCOOL for beef after the WTO authorized retaliatory measures against U.S. beef exports, driven mainly by objections from Canada and Mexico. Supporters of the current proposal say a WTO-compliant framework is designed to avoid the trade fallout that forced the repeal.

The United States Cattlemen's Association backs the mandatory measure. "USCA has fought for clear, honest beef labels from the very beginning, and we are encouraged to see MCOOL back in the conversation in a serious way," said USCA President Justin Tupper. "U.S. consumers deserve to know where their beef comes from, and we support a WTO-compliant framework that requires all beef -- domestic and imported -- to be accurately labeled. Done right, MCOOL doesn't just give families a clear choice at the meat counter; it will restore integrity across our trade deals and the broader marketplace."

Executive order adds momentum

At a Sept. 4 gathering of agriculture and beef industry leaders in the Oval Office, President Donald Trump signed an executive order directing the administration to review the potential for mandatory beef origin labeling. Attendees understood that Congress would have to act to move the measure forward. "The lasting impact will be decided by the agencies as they do their review and Congress, who can take action to support these moves," Tupper said.

National Farmers Union President Rob Larew called the committee's action "a major win for farmers and consumers alike."

Bullard cited bipartisan Senate support, presidential backing and organizational endorsements, but cautioned that the work is unfinished. "We must remain vigilant to ensure MCOOL remains in the Farm Bill through the next steps of this process and is ultimately restored into law," he said.

Packers and processors push back on costs

Opponents argue the mandate would inflate consumer prices across an already strained supply chain. At the NCBA summer business meeting in July, National Cattlemen's Beef Association Senior Vice President of Government Affairs Ethan Lane told DTN that MCOOL would raise grocery-store prices. "There is not a more efficient way to increase the price consumers are paying at the grocery store than to saddle the supply chain with that compliance cost right now," Lane said.

NCBA instead supports a voluntary system built on the Product of the USA label. "It is targeted at marketing our product," Lane said. "It is a voluntary program that allows producers to ensure, under the new rule, first of all, that nothing is being labeled a product of the USA that did not come from the United States. So, we've closed that loophole."

The Meat Institute said the amendment would add pressure to a struggling beef supply chain and push consumer prices higher.

"As we look ahead to consideration of the Farm Bill by the full Senate, the Meat Institute will continue to oppose MCOOL provisions because they raise the price of beef for American families," said Meat Institute President and CEO Julie Anna Potts. "Consumers are paying more for beef than ever before. It is the worst time for Congress to interfere with markets, adding costs and bureaucracy to production by mandating how beef should be marketed to consumers."

Potts said mandatory labeling would cut against the Trump administration's and Congress's efforts to relieve high food prices. "MCOOL's excessive costs are a threat to consumer demand which has sustained the entire beef supply chain through tough conditions," she said.

Next steps

The Farm Bill now moves to Senate leaders for work toward full-chamber approval. The House has already passed its version. The 2018 farm bill is operating under an extension that expires Sept. 30, leaving lawmakers a narrow window to reconcile the competing approaches to beef labeling before the underlying authority lapses.