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Country of Origin Labeling: Evaluating the Impacts on U.S. and World Markets

Published online by Cambridge University Press:  15 September 2016

Keithly G. Jones ,
Agapi Somwaru  and
James B. Whitaker
Keithly G. Jones
Affiliation:
Economic Research Service of the U.S. Department of Agriculture in Washington, D.C. The views expressed herein are solely those of the authors and do not represent the views of the U.S. Department of Agriculture
Agapi Somwaru
Affiliation:
Economic Research Service of the U.S. Department of Agriculture in Washington, D.C. The views expressed herein are solely those of the authors and do not represent the views of the U.S. Department of Agriculture
James B. Whitaker
Affiliation:
Economic Research Service of the U.S. Department of Agriculture in Washington, D.C. The views expressed herein are solely those of the authors and do not represent the views of the U.S. Department of Agriculture
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Abstract

A provision of the Food, Conservation, and Energy Act of 2008 requires country of origin labeling (COOL) for certain agricultural commodities. To comply with the law, producers, processors, and retailers face additional production costs associated with labeling, separating, and tracking commodities. Using estimated costs provided by the U.S. Department of Agriculture's Agricultural Marketing Service (AMS), we simulate the impacts of mandatory COOL on U.S. and global agricultural markets using a global static general equilibrium model (STAGEM). The results show resource adjustments that lead to decreases in production, consumption, and trade flows. The results assume no demand premium for labeled commodities relative to unlabeled commodities.

Keywords

country of origin labelingagricultural tradeglobal general equilibrium
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 38 , Issue 3 , December 2009 , pp. 397 - 405
Copyright
Copyright © 2009 Northeastern Agricultural and Resource Economics Association 

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