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Will new food laws put a squeeze on your wallet?

By Andrew B. Einhorn Aug 26 2008, 09:09 AM

"Made in China." We're all use to seeing the label tattooed to a variety of items, like toys and clothing. But soon it (and others like it) will be stamped on your packages of beef, chicken, vegetables, and other grocery items, thanks to a new law included in the 2008 Farm Bill.

A federal mandate that goes into effect next month requires grocers to inform their customers where their items originated from. But moving from "where's the beef" to "where's the beef from" won't be easy; the Department of Agriculture estimates it will cost over $2.5 billion for retailers, producers, and food packagers to alter their operations in compliance with the new law. 

Naturally, the grocery industry is not happy with the change which is aimed at giving consumers more choice over what food they eat. They complain the costs are excessive and will cut into their already low profit margins unless higher prices are passed along to consumers - which neither the retailer nor the consumer wants.

"We're an industry with a net profit of just 1% to 2% of sales, so any increase is going to have an effect on cost to consumers," Bill Greer, director of communications for the Food Marketing Institute, told CNN.

On the flip side, the new labeling will aid in tracking contaminated foods during an outbreak and allow costumers to buy American food products if they choose. With the growing organic and locally-grown food movements, it's possible the costs of this program will be superseded by the benefits to American food producers.  

Still, the timing of the regulation is as poor as many Americans feel right now. And if the costs of implementing the new law is in fact passed along to consumers, it will add yet another squeeze to an already overburdened cost of living.


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Read More: Agriculture (USDA), U.S. Congress, Public Health, Legislation

 
 
 
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