From the Office of Senator Kerry

Wednesday, September 10, 2003

WASHINGTON, DC – Senator John Kerry (D-Mass.) today called on Agriculture Secretary Ann Veneman to address the findings of a new General Accounting Office report that calls into question the United States Department of Agriculture’s (USDA) cost estimate on Country of Origin Labeling (COOL) for meat.

The COOL law, which was included in the 2002 farm bill, requires grocery stores to label fresh and frozen meats, fruits, vegetables, fish and peanuts with the country in which the product was grown, raised and processed. The law is set to take effect September 2004.

The USDA has claimed that implementation of COOL will cost $1.9 billion. The GAO, however, found that the “USDA used assumptions that are questionable and not well supported in developing its $1.9 billion estimate.”

“These findings from the GAO raise serious questions about the USDA’s ability to provide the public with accurate and impartial information about the costs and benefits associated with COOL,” said Kerry. “As Secretary of Agriculture, I want to know how you plan to address these findings.”

The full text of Kerry’s letter to Veneman follows.

-- 30 --

September 10, 2003

The Honorable Ann Veneman Secretary of Agriculture 1400 Independence Avenue SW Washington, DC 20250

Dear Secretary Veneman:

I write in response to a report released today by the General Accounting Office (GAO) with respect to Country of Origin Labeling (COOL) for meat. The report calls into question the United States Department of Agriculture’s (USDA) cost estimate, which has been used as justification to delay the implementation of this critical program.

The USDA has claimed that implementation of COOL will cost $1.9 billion. The GAO, however, found that the “USDA used assumptions that are questionable and not well supported in developing its $1.9 billion estimate.” In addition, the GAO report also found that:

· The USDA made an arbitrary assumption that about 90 percent of farmers, ranchers, and fishermen would be subject to recordkeeping;

· The USDA could provide no documentation to support its estimates for the number of hours needed to develop and maintain a recordkeeping system; and

· The USDA’s assumption of an hourly rate of $50 for processors to carry out recordkeeping tasks was more than double the hourly rates it used in recent estimates for other programs.

These findings from the GAO raise serious questions about the USDA’s ability to provide the public with accurate and impartial information about the costs and benefits associated with COOL. As Secretary of Agriculture, I want to know how you plan to address these findings. Thank you for your attention to this matter. I look forward to your response.

Sincerely,

John F. Kerry