USDA Beef Initiatives & Marketing Programs

1. USDA Beef Initiatives & Marketing Programs Craig Morris, Deputy Administrator Livestock and Seed Program

2. Beef Checkoff Program Promoting beef through research and promotion activities

3. Beef Checkoff Program: Potential Changes • Adequately funded? • $1 per head $2 per head assessment • Congressional action required to amend • Simplify petition process to determine whether to hold referendum for continuing the Checkoff; to increase checkoff assessment in the future

4. Beef Checkoff Program: Potential Changes • Eliminate charter date requirement for organizations to manage checkoff-funded programs • Enhance identity and role of Federation of State Beef Councils • Specifically promote U.S. born and raised beef?

5. Country of Origin Labeling Provides consumers with information to make purchasing decisions

6. Country of Origin Labeling • Covers muscle cuts and ground beef, lamb, pork; chicken; goat meat; fish and shellfish; fruits and vegetables; peanuts; macadamia nuts; pecans; ginseng • To be implemented Sept. 30, 2008

7. COOL Implementation Timeline 1 4 6 7 10 12 2 3 5 8 9 11 13

8. 2008 Farm Bill Amendments • Addition of chicken, goat meat, macadamia nuts, pecans, ginseng • Decrease of max penalty from $10,000 to $1,000 • “U.S. origin” labeling • Labels for livestock from multiple countries of origin • Exemption of covered commodities derived from animals in the U.S. before July 15, 2008

9. Cooperative Agreements & Retail Surveillance Audits

10. COOL: What’s Next? • Fully implement 2002 & 2008 Farm Bills • Publish regulation for all covered commodities • Conduct outreach and implementation program for all covered commodities during fiscal year 2009

11. Livestock Mandatory Reporting Provides reliable data to enhance fair competition in a dynamic market

12. Livestock Mandatory Reporting • Enacted in 1999; first reports released April 2001 • Expired Oct. 1, 2005 • Reauthorized & amended Oct. 2006 • Final rule published May 16, 2008; to take effect July 15 • First reports to be released July 21

13. Changes: Cattle Reporting • Separate reporting requirements for cows & bulls from steers & heifers • “Term of trade” modified between steers & heifers scheduled for delivery within 14 days and 15-30 days • Accounts for negotiated grid purchases • “White cow” included

14. Changes: Boxed Beef Reporting • Includes frozen product • No product age limitations • 2,000 lb. minimum threshold for cow and bull boxed beef items

15. LMR Coverage • Reporting required by about 48 beef plants (represents 7.7% of all Federally inspected cattle slaughter plants) • Published reports expected to cover 77% of slaughter cattle and 93% of boxed beef

16. 2008 Farm Bill Amendments • USDA to develop and implement Web site improvements and user education within 1 yr. after sufficient funds appropriated • USDA to conduct study on effects of mandatory reporting of wholesale pork cuts • USDA authorized to collect information from packers • Report to Congress within 1 yr. after enactment • Appropriations for Web site enhancements and pork reporting study authorized

17. Beef Instrument Grading Innovative technology to enhance beef carcass assessments

18. Beef Instrument Grading • Utilize beef carcass factors to determine official quality and yield grades and certifying branded programs • Precise, accurate, uniform prediction equation developed from evaluating 1.2 million carcasses • Pilot project to be completed mid-July • Data from 9 plants in NE, KS, and TX

19. Beef Instrument Grading • Beta tested alongside USDA meat graders • Override instrument evaluation if inconsistent with meat grader’s evaluation • USDA will analyze data for grader and instrument performance • Refine protocols for instrument operation and use

20. Beef Instrument Grading • Expert panel will assess conformance of image-capture process • Scheduled to be completed Aug. 15 • Analysis of override data to determine trends or biases within individual plant and across plants • Analysis to be presented to industry Sept. 2008

21. Marketing Claims Common language to facilitate commerce/ differentiate value in market

22. Marketing Claims • Naturally Raised Livestock • Regarding production: (proposed) no growth promotants or antibiotics; no mammalian or avian by-product in feed • Proposed standard Nov. 28, 2007 • AMS analyzing over 44,000 comments • Final standard to be published fall 2008

23. Marketing Claims • Meat Tenderness • Proposed standard Dec. 30, 2002 • Topics: • Defining tenderness; threshold segregation among different species; objective or based on total quality management systems; application to entire carcass or middle meats • Input from academia, industry, government • Discussed at Reciprocal Meat Conference, FL, June 2008 • Will begin drafting framework for claim

24. Other Initiatives • Cow Grade • To help determine market cow value • Classification system based on lean meat yield • Currently being researched and discussed with scientific experts and stakeholders • Yield Grade 4 • To evaluate impact of gender, fatness, muscling, and weight on cutability of Yield Grade 4 beef carcasses • To increase value of commonly discounted carcasses

25. Verifying Marketing Claims • Through USDA Process Verified Programs • Naturally Raised • Never Ever 3 • No antibiotics, growth promotants, or animal by-products • Born and Raised in the USA • Grass-fed • Breed

26. Process Verified Program • Audit-based • Individualized; company-specific • Utilized by 8 companies with multiple plants, nurseries, growers, and finishers in U.S. and abroad

27. Beef Purchases and Contract Provisions Feeding the nation and ensuring humane treatment of animals

28. Beef Purchases • Procure beef and beef products for distribution to Federal food and nutrition programs • National School Lunch Program • FY 2008 to date: 88.3 million pounds valued at $132.6 million • FY 2007: 150 million pounds valued at $223.9 million

29. Animal Welfare: Meat Purchase Contracts • Currently, sub/contractors precluded from including meat derived from non-ambulatory, disabled animals in products for AMS • Not for food safety reasons • To ensure humane treatment

30. Animal Welfare: Meat Purchase Contracts • Proposed additional provisions for product providers: • Animal welfare mission statement • Periodic training in humane handling • Written protocol to prohibit receipt of or having non-ambulatory cattle

31. Animal Welfare: Meat Purchase Contracts • Proposed additional provisions for product providers: • Audit provisions of AMI’s “Recommended Animal Handling Guidelines and Audit Guide” • Seven core criteria; from time of arrival on premise to stunning • Frequency of audits • At least 4/yr • Performance-based

32. Thank You Livestock and Seed Program • For additional information, visit http://www.ams.usda.gov/AMSv1.0/, commodity area livestock and seed • Craig.morris@usda.gov; 202-720-5705