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

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  • Jones, Keithly G.
  • Somwaru, Agapi
  • Whitaker, James B.

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.

Suggested Citation

  • Jones, Keithly G. & Somwaru, Agapi & Whitaker, James B., 2009. "Country of Origin Labeling: Evaluating the Impacts on U.S. and World Markets," Agricultural and Resource Economics Review, Cambridge University Press, vol. 38(3), pages 397-405, December.
    • Handle: RePEc:cup:agrerw:v:38:y:2009:i:03:p:397-405_00
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    1. Loureiro, Maria L. & Umberger, Wendy J., 2003. "Estimating Consumer Willingness to Pay for Country-of-Origin Labeling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(2), pages 1-15, August.
    2. Jayson L. Lusk & Jason Brown & Tyler Mark & Idlir Proseku & Rachel Thompson & Jody Welsh, 2006. "Consumer Behavior, Public Policy, and Country-of-Origin Labeling," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(2), pages 284-292.
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    Cited by:

    1. Alexander E. Saak, 2011. "A Model of Labeling with Horizontal Differentiation and Cost Variability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(4), pages 1131-1150.
    2. Eberhardt, Markus & Wang, Zheng & Yu, Zhihong, 2016. "From one to many central plans: Drug advertising inspections and intra-national protectionism in China," Journal of Comparative Economics, Elsevier, vol. 44(3), pages 608-622.
    3. Ross Hallren & Alexandra Opanasets, 2018. "Whence the Beef: The Effect of Repealing Mandatory Country of Origin Labeling (COOL) Using a Vertically Integrated Armington Model with Monte Carlo Simulation," Southern Economic Journal, John Wiley & Sons, vol. 84(3), pages 879-897, January.
    4. Joseph, Siny & Lavoie, Nathalie & Caswell, Julie A., 2014. "Implementing COOL: Comparative welfare effects of different labeling schemes," Food Policy, Elsevier, vol. 44(C), pages 14-25.
    5. Rude, James & Gervais, Jean-Philippe & Felt, Marie-Helene, 2010. "Detecting COOL Impacts on US-Canada Bilateral Hog and Pork Trade Flows," Working Papers 95811, Canadian Agricultural Trade Policy Research Network.
    6. Edgar E. Twine & James Rude & Jim Unterschultz, 2016. "Country of Origin Labeling and Structural Change in U.S. Imports of Canadian Cattle and Beef," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(3), pages 545-563, September.
    7. Aldy, Joseph E. & Viscusi, W. Kip, 2013. "Risk Regulation Lessons from Mad Cows," Foundations and Trends(R) in Microeconomics, now publishers, vol. 8(4), pages 231-313, December.
    8. Osei, Yeboah & Cephas, Naanwaab & Kingsley, Ekwemalor & Kelly, Chege, 2018. "Exploring the Consumer welfare effects of MCOOL," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266706, Southern Agricultural Economics Association.
    9. Zheng, Yanan & Goddard, Ellen W. & Qiu, Feng, 2018. "Exploring the Effect of Disease Outbreaks on Farm Structure Change: A Dynamic Analysis for Canadian Pig Industry," 2018 Annual Meeting, August 5-7, Washington, D.C. 273801, Agricultural and Applied Economics Association.
    10. Fabio Boncinelli & Andrea Dominici & Federico Bondioni & Enrico Marone, 2024. "Consumers bahavior towards the country of origin labeling policy: The case of the pasta market in Italy," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 46-69, January.
    11. James Rude & Marie‐Hélène Felt & Edgar Twine, 2016. "Detecting COOL Impacts on United States–Canada Bilateral Hog and Pork Trade Flows," Agribusiness, John Wiley & Sons, Ltd., vol. 32(2), pages 272-288, April.
    12. Chern, Wen S. & Chang, Chun-Yu, 2012. "Benefit evaluation of the country of origin labeling in Taiwan: Results from an auction experiment," Food Policy, Elsevier, vol. 37(5), pages 511-519.
    13. Yeboah, Osei & Naanwaab, Cephas & Shaik, Saleem & Legesse, Befikadu & Odom, Phillipa, 2017. "Is Mandatory Country of Origin Labeling a Proxy for Import Quota: A Partial Equilibrium Analysis of U.S Beef Imports?," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252807, Southern Agricultural Economics Association.

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