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Will Canada Win The COOL War In The End?
There’s been quite a bit of publicity regarding Canada and
Mexico's frustration over mandatory country of origin labeling (mCOOL)
in the U.S. and their impending challenges to the law. That will play
out as it will play out and, as we’ve learned in the U.S experience
with Europe over the use of growth implants, that process will take
years. And, even if they win, it doesn't mean the U.S. will have to
remedy things in any substantive way.
From a producer standpoint the real concern is Canada's efforts to
capitalize on mCOOL. It should be a warning sign for our cattle industry
that the opportunity is real.
We've made strides in improving quality in U.S. beef products, but
studies indicate that nearly 1 in 4 eating experiences are still
unacceptable. That is a competitor marketer’s dream, as Canada
historically has exported "upper" end product; that’s an advantage
when compared to everything produced south of the Canada-U.S.
border.
Being such a small percentage of the marketplace, Canadian product only
has to appeal to a very select group. It doesn't have to be considered
as “premium” to the vast majority of consumers in order to
capitalize on the opportunity.
While New Zealand lamb is the often-used example, Certified Angus Beef,
Certified Hereford Beef, Laura's Lean, and the host of others are just
as appropriate. Separating yourself from the commodity mix is not an
easy job, but it’s a far more attractive option. It will be
interesting to see who ends up being a bigger supporter of mCOOL in 10
years, us or the Canadians.
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