Issues: Country of Origin Labeling

Retail Scenarios

The following questions and answers were asked during the August 6, 2008 PMA/Western Growers Webinar on the USDA's interim final rule on mandatory country of origin labeling. PMA thanks USDA for answering these questions, thereby providing members and industry with the agency's interpretation on various COOL scenarios as they relate to situations retailers may experience.

What about fresh juices squeezed in-store (for example, orange juice) - do they need COO labeling? Orange juice would not be considered a fresh fruit or vegetable since the juice product would be considered to be a product of a different kind or character. Thus, orange juice or bottled juice would not be covered by COOL.

For bulk non-stickered items (i.e. chilies, nuts, non-stickered squashes), store signage must show the country of origin? Signage on bulk items is one of the many types of markings that may be used to provide notice to the public about COO.

What happens with a cluster of bananas, every finger must be labeled? No, the information can be provided on the invoice or on the bin at retail display.

For bulk product, such as potatoes or onions, the bulk bin is marked with the COOL marking, however, what about the individual product labeling requirements within the bulk bins? Bin signage as to COO information is sufficient. It is also allowable to include labeling on individual pieces.

Can a display of bulk items, example strawberries, be commingled in a display if the display informed consumers that the display contained both US & Mexico products? Yes, but must be labeled accordingly. The bulk bin must identify all sources of product that are currently in the bulk bin.

Do you need to mark each potato in bulk displays in retail stores? No, as long as the bulk bin is marked appropriately.

Would each onion in a fifty pound bulk bag of medium onions need to be stickered from supplier? No, each onion does not need to be marked if the COOL information is provided to your customer in one of the other available methods.

For bulk items at retail that do not lend to efficient PLU or label stickering in the retail bin, such as onions, specialty onions, or garlic, will there then be required bulk signage to describe COO of that which is in bin? Yes, whatever is in the bin must be labeled accordingly. Where will this responsibility fall – on the retailer or grower? The retailer will have to label the bin but the supplier must provide the COO information to the retailer.

How do we label fresh product that is merchandised in a bin and contents are from mixed origin? Country of origin declarations can be made on placards, stickers, twist ties, labels or other signage. If the contents are covered commodities from more than one origin then all the origins must be listed.

You mentioned that this law only applies to retailers with $230k in sales annually. Is this per unit or per chain? A person selling at retail is subject to a PACA license once the invoice costs of fresh and frozen fruits and vegetable purchases exceed $230,000 in a calendar year. The threshold for licensing applies to purchases of produce not the sales. The threshold figure applies to a legal entity not an individual branch/store. You may contact the PACA Branch, National License Center via phone at 1-800-495-7222 to determine if you need a license.

Do bulk displays with commingled covered products, without individual labels, have to have signs that list the specific countries or can they say MAY be from listed countries? The origin declaration has to be definitive; you can not use the word “may” in the signage for COOL.

Can a retailer display multiple COO items of the same commodity together - like radishes - or do they need to be separated? The same commodity from multiple countries of origin can be displayed together as long as it is labeled accordingly.

What about a bulk display at retail - can retailers combine COO products in a bulk display if they label it as such? Yes, if they label accordingly.

Follow up question on displaying bins of product. For example, we have COO information on cantaloupe, if all the fruit has COO PLU stickers would that be covered under the new law? Or would we need a sign? Signage as to COO is sufficient for bins. Individual labeling of produce is also acceptable. There is no requirement to do both.

Does each individual piece of fruit or vegetable have to be labeled with Country of Origin or does the retailer have other options? No, each piece does not need to be labeled; signage may be used as long as it is in a conspicuous location to notify the consumer as to country of origin is acceptable. However, the retailer may require you to label each individual piece of fruit or vegetable.

Do we need to have the COOL info on grape bags if the cool info is on the master container? No, it does not need to be labeled on grape bags, but retailers would need to provide notice to the consumer and maintain a record of origin some how in case the master shipping container is destroyed.

If the packaged salad shows the ingredients and COO does the retailer have to put a sign up showing "Product of US and Mexico?" As long as the different origins are listed on the package, the retailer will not have to put up an additional sign.