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The Agency estimates a potential range of commingling of
U.S. and foreign-origin livestock by U.S. packers of five
percent to 20 percent. The Agency considers that the data
analyzed support the possibility that the extent to which
packers are commingling is closer to the lower end than the
higher end of the range. Midrange estimates of commingling are
12.5 percent for fed cattle and hogs.
Estimated costs for the loss of commingling flexibility at
the packer/processor level are $7.16 per head for cattle and
$1.79 per head for hogs that are currently commingled.
Estimated costs at the retail level are $0.050 per pound for
beef and $0.045 per pound for pork muscle cuts derived from
commingled livestock. For the beef segment, total costs for the
loss of commingling flexibility to intermediaries and retailers
are estimated to be $21.1 million, $52.8 million, and $84.5
million at the lower, midpoint, and upper levels. Similarly for
the pork segment, total costs for the loss of commingling
flexibility to intermediaries and retailers are estimated to be
$15.0 million, $37.7 million, and $60.3 million at the lower,
midpoint, and upper levels.
Combining costs for label changes with costs from the
elimination of commingling flexibility yields estimated total
adjustment costs of $123.3 million at the midpoint and ranging
from $53.1 million at the low end to $192.1 million at the high
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