1. U.S. producers need mandatory labeling in order to compete in the marketplace. Only with labeling can U.S. producers engage in competition. Product differentiation is the only way consumers can exercise their choice between purchasing either domestic beef or beef produced by foreign competitors.

2. In the event of a disease scare in any of the 17 countries we import beef, we can maintain consumer confidence in our U.S. product if consumers can differentiate the U.S. product.

1. The cost estimate does not account for the fact that not all producers produce the products subject to COOL. For example, USDA reports there are only 815,000 beef cow producers in the United States.
2. The estimate assumes that no segment of the industry keeps any records that could be used to determine if cattle or beef originated in the United States.
3. The estimate assumes that U.S. producers must affirmatively prove that their cattle were not imported (the only factor that would disqualify live cattle from the USA label) in order to qualify for the USA label).
4. The only cattle that are not eligible for the USA label are imported cattle that are already identified by import documentation when they cross the border. This import documentation could easily be retained with the imported cattle to the point of slaughter to identify the cattle's country of origin.
5. The estimate does not consider that only about 8 percent of the cattle slaughtered in the U.S. are imported cattle, and the remaining 92 percent are necessarily domestic and eligible for the USA label.
6. The estimate ignores the fact that at least 49 U.S. packing plants already have USDA approved segregation plans for separating domestic and imported cattle and beef.
7. The estimate ignores the fact that many U.S. cattle producers already have a record-keeping system in place.
8. The estimate ignores the fact that nearly every U.S. retailer has a sophisticated inventory/invoice tracking system already in place.

1. Focus on the mandatory program. At this point in time there is little likelihood that the industry will adopt voluntary labeling.
2. Design a program to track imports from the border to the packer.
3. Require import documentation to be kept with cattle until slaughter. USDA can define in regulations that the lack of import documentation constitute proof that the cattle are eligible for the USA label.
4. Use existing live cattle identification systems if additional documentation is needed.
5. Allow for self-certification similar to affidavits regarding feeding of ruminant by-products
6. Keep in mind that the Act only requires the identification of the COUNTRY of origin.
7. USDA should publicly disclose the deficiencies in its estimate as the estimate itself is being used to taint the implementation process.