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to segregate product by origin for those plants currently commingling. The commenter stated that estimates of capital costs for beef slaughter and processing operations ranged from $20 to $50 million and from $12 million to $25 million for hog slaughter and processing operations for those plants currently commingling. Other commenters stated that the proposed rule will add only modest costs to the industry. The commenters pointed out that, as noted in the 2009 COOL regulations, segregating animals by origin can be accomplished through processes that are essentially the same as those that firms already use to sort animals by weight, grade, and other factors. In addition, the commenters stated that strengthening the origin labels in this manner can be achieved without imposing significant additional recordkeeping or verification requirements, as producers are already required to track the origin of animals from which meat is derived. Agency Response: As previously discussed, no additional recordkeeping is required by this final rule, and no new processes need be developed to transfer information from one level of the supply chain to the next. The information necessary to transmit production step information should already be maintained by suppliers in order to satisfy the 2009 COOL regulations. 34
With respect to additional operational costs anticipated from the elimination of the commingling flexibility, the Agency has modified its analysis to account for these estimated costs. As noted by commenters, the elimination of this flexibility may require adjustments to plant operations, line processing, product handling, storage, transportation, and distribution for those companies that commingle. As discussed in the RIA, commenters to the proposed rule submitted anecdotal information indicating that commingling flexibility is used by some packers. However, the information provided was insufficient to enable the Agency to determine the extent to which industry is making use of commingling flexibility. As discussed in the RIA, the Agency estimates that the current use of the flexibility likely falls within a range of five to 20 percent of the production of beef and pork muscle cut covered commodities, although it is likely that the extent to which packers are commingling is closer to the lower end than the higher end of the range. As also discussed in the RIA, the Agency estimates that adjustment costs due to elimination of commingling will range between $19.0 million and $76.3 million in the processing sector and between $17.1 million and $68.5 million in the retail sector (see table 3). The Agency believes these estimates, however, are likely to overstate actual adjustment costs over time. The Agency anticipates that intermediaries will develop ways to 35
Page 1 and 2: DEPARTMENT OF AGRICULTURE Agricultu
Page 3 and 4: FR 2658), which took effect on Marc
Page 5 and 6: The estimated number of firms that
Page 7 and 8: end. Given that the Agency believes
Page 9 and 10: designations for chicken muscle cut
Page 11 and 12: Commingling This final rule elimina
Page 13 and 14: “The United Kingdom of Great Brit
Page 15 and 16: support or opposition to the rule w
Page 17 and 18: to require labeling of specific pro
Page 19 and 20: must identify the origin of categor
Page 21 and 22: signage to convey origin informatio
Page 23 and 24: With regard to chicken products, th
Page 25 and 26: spent in another country, i.e., cou
Page 27 and 28: that it is as broad as possible. Th
Page 29 and 30: necessitated by the proposed rule w
Page 31 and 32: to the new labels. The Agency furth
Page 33: Several commenters stated their bel
Page 37 and 38: would cause the processing industry
Page 39 and 40: Another commenter that supplies ind
Page 41 and 42: the country(ies) of origin of the c
Page 43 and 44: does not have concerns that this ru
Page 45 and 46: supports the creation of jobs in th
Page 47 and 48: derived from animals born, raised a
Page 49 and 50: the existing limited demand for suc
Page 51 and 52: consumers with information upon whi
Page 53 and 54: One beef packer commented that 2009
Page 55 and 56: costs, of harmonizing rules, and of
Page 57 and 58: conclusion that the final rule’s
Page 59 and 60: COOL regulations. The revised cost
Page 61 and 62: Commenters to the notice of propose
Page 63 and 64: could potentially be commingled, wh
Page 65 and 66: impact analysis (hereafter, 2009 RI
Page 67 and 68: Assuming an 800 pound average carca
Page 69 and 70: steaks and roasts). While a small a
Page 71 and 72: multiplying by the per-head cost es
Page 73 and 74: are applied to arrive at the lower,
Page 75 and 76: information to currently required C
Page 77 and 78: that is unlikely, because it requir
Page 79 and 80: objective of this rulemaking is to
Page 81 and 82: clubs, and superstore firms operate
Page 84 and 85:
The 2007 Economic Census data provi
Page 86 and 87:
The 2007 Economic Census 16 provide
Page 88 and 89:
cattle or hogs. The number of small
Page 90 and 91:
steps occurred, by using signs or p
Page 92 and 93:
AMS considered the potential civil
Page 94 and 95:
States to comply with the DSB recom
Page 96 and 97:
§65.240 Retailer. Retailer means a
Page 98:
location information related to pro
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