FOOD INDUSTRY Group: New labels will boost prices

The guidelines involving the labeling of the foods' origins were issued in October.
WASHINGTON (AP) -- A new system of labeling food so consumers can see which country it was grown and processed in could cost farmers and the food industry an estimated $2 billion, according to the Agriculture Department.
The estimate was published Thursday in the Federal Register. The government is seeking public comment on ways to minimize the cost of the program.
The Food Marketing Institute said Monday that the program is expensive for farmers and manufacturers who have to keep records so meat, fish and other products can be labeled with their country of origin. The institute warned consumers' wallets will get hit as the food industry tries to offset the costs.
The government issued guidelines in October for the food industry to mark products with their country of origin. The program is voluntary for two years but will become mandatory.
Meeting standards
The guidelines allow retailers to mark designated goods as products of the United States if they meet certain standards. For meat such as beef, it means the animals must be born, raised and slaughtered in this country.
Food products of mixed origin would carry labels noting the separate countries, according to the guidelines.
Hammonds said the system is confusing for consumers because some food is raised and slaughtered or processed in different countries.
Farm groups such as the American Farm Bureau Federation favored the labeling program because it would allow consumers to distinguish U.S.-made food from products made by competitors.