Farms.com Home   Ag Industry News

Meat Industry Lose Second Court Battle on COOL Injunction

By Amanda Brodhagen, Farms.com

North American meat industry groups were unsuccessful in their second attempt to block implementation of the U.S. Department of Agriculture’s May 2013 final rule on the country-of-origin labelling, also known as COOL, in a July 29 court ruling.

The U.S. Court of Appeals rejected the arguments put forward by meat producers, including Tyson Foods Inc. and JBS USA, saying that the USDA’s meat labeling rule violated their First Amendment (free-speech) rights by mandating retailers to issue statements against their will in the form of costly labels on meat products, without "directly advancing a government interest."

 Labels are mandated to include information about where an animal was born, raised and slaughtered, “Born in Canada, Raised and Slaughtered in the United States,” would be an example.

A U.S. judge, Stephen Williams, wrote that the government’s interest in providing consumers with information overrides free speech claims. Williams issued the ruling on behalf of a divided panel of 11 judges.

The lawsuit had been filed in July 2013 by several industry groups, including the American Meat Institute, National Pork Producers Council, American Association of Meat Processors, Canadian Cattlemen’s Association, Canadian Pork Council, Confedaracion Nacional de Organizaciones Ganaderas, National Cattlemen’s Beef Association, North American Meat Association and the Southwest Meat Association.

Despite the U.S. court of appeals ruling, the COOL dispute is still ongoing. The future of the final rule is pending a ruling by the World Trade Organization. In this case, the disputing parties - Canada and Mexico, received an interim report from the WTO compliance panel. A full report on the trade verdict is expected to be release sometime in the late summer or early fall, with an appeal likely to follow.


Trending Video

Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?


Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.