Analyzing the Welfare Impact of Mandatory Country of Origin Labeling On Producers and Consumers; The Case of U.S. Beef and Pork

Osei Yeboah, Cephas Naanwaab and Effraim Ekua

No 229988, 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas from Southern Agricultural Economics Association

Abstract: Mandatory Country of Origin Labeling (MCOOL) is a labeling law passed in 2008 Farm Bill by the US Congress which requires all food commodities to be labeled by their country of origin. Total cost assessed to the meat industry from the implementation of mandatory COOL has raised concerns for research into the estimation of how cost associated with mandatory COOL are shared across the supply chain and how the increased cost will be borne by producers and consumers. The research seeks to determine the welfare impacts of mandatory COOL on producers and consumers in the beef and pork sectors. Using Equilibrium Displacement Model, we estimate the consumer and producer surplus with existing cost estimates associated with mandatory COOL implementation. The empirical result shows that a 2% and 5% increase in demand for beef and pork is not sufficient to offset mandatory COOL cost.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Pages: 20
Date: 2016-01-21
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea16:229988

DOI: 10.22004/ag.econ.229988

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